Selling Renewable Energy Credits

Selling renewable energy credits is a new andcorrectly tracked. The Climate Neutral Network,
interesting market. Here is some information aboutGreen-e, and the Environmental Resources Trust's
selling renewable energy credits and a basicEcoPower Program certify RECs. If you are
understanding of the market.interested in selling renewable energy credits, start
Renewable Energy Certificates (RECs) are frequentlywith your local electric company or one of these
referred to as Green Tags, Renewable Energyorganizations.
Credits, and/or Tradable Renewable CertificatesThere are two main markets for selling renewable
(TRCs). RECs represent the environmental andenergy credits in the United States - compliance
economic value of electricity produced from clean,markets and voluntary markets. A policy called the
renewable, emission-free energy resources that willRenewable Portfolio Standard (RPS) is responsible for
never be depleted and are safe for our environment.creating the compliance markets. Renewable Portfolio
A REC is not actual energy, just the right to say thatStandard requires electric companies to supply a
you have offset the production of dirty power withpredetermined percent of their electricity from
clean power.renewable sources by a specific year.
Producers of green power should consider sellingFor example, California electric companies must
renewable energy credits as well as the power itself,provide 20% energy from renewable sources by
which will increase their profits. Other parties can buy2010. Electric utilities in these areas with RPSs must
RECs if they need to satisfy regulatory requirementsdemonstrate compliance with their requirements by
or improve their corporate appearance. When RECsbuying RECs. In the California sample, the electric
are sold, the organization buying the RECs obtainscompanies would need to hold RECs equivalent to
the right to claim environmental advantage.20% of their sales.
Selling renewable energy credits allows energy usersWant to help companies and property owners go
across the country to support alternative energygreen? Sell your RECs on the voluntary market.
generation. RECs contribute to the growth of theVoluntary markets allow customers to purchase
renewable power sector, and with buyer support willrenewable power, generally out of a desire to go
continue to help make alternative power even moregreen. Most commercial and domestic purchases of
cost competitive.RECs are voluntary. Alternative power providers can
In areas which have a REC program, an alternativesell their RECs to voluntary buyers, usually at a lower
energy provider (such as a wind farm) is creditedprice than compliance market RECs.
with one REC for every 1,000 kWh or one MWh ofDetractors indicate a flaw with this system. It is
electricity it creates. The average residentialargued that it does not necessarily replace dirty
customer uses about 800 kWh per month. Aenergy. Since some alternate energy resources, most
certifying organization gives each REC an exclusivenotably wind resources, are irregular and
identification number to make sure it isn't sold twice.unpredictable, their production does not replace an
The green energy is then fed into the electrical gridequivalent amount of other sources, per kW of
(by law), and the complementary REC can then becapacity. However, they do replace on a per kWh
sold on the open market.basis, electricity from combustion sources, thus
Several certification and accounting associationsreducing greenhouse gases and undesirable
attempt to ensure that RECs are legally sold andbyproducts.