Renewable Energy Certificates (RECs), also known as Green tags, Renewable Energy Credits, or Tradable Renewable Certificates (TRCs), are tradable environmental commodities in the United States which represent proof that 1 megawatt-hour (MWh) of electricity was renewable (generated from an eligible renewable energy resource).
These certificates can be sold and traded and the owner of the REC can claim to have purchased renewable energy. While traditional carbon emissions trading programs promote low-carbon technologies by increasing the cost of emitting carbon, RECs can incentivize carbon-neutral renewable energy by providing a production subsidy to electricity generated from renewable sources. It is important to understand that the energy associated with a REC is sold separately and is used by another party. The consumer of a REC receives only a certificate.
In states which have a REC program, a green energy provider (such as a wind farm) is credited with one REC for every 1,000 kWh or 1 MWh of electricity it produces (for reference, an average residential customer consumes about 800 kWh in a month). A certifying agency gives each REC a unique identification number to make sure it doesn't get double-counted. The green energy is then fed into the electrical grid (by mandate), and the accompanying REC can then be sold on the open market.
In states which have a REC program, a green energy provider (such as a wind farm) is credited with one REC for every 1,000 kWh or 1 MWh of electricity it produces (for reference, an average residential customer consumes about 800 kWh in a month). A certifying agency gives each REC a unique identification number to make sure it doesn't get double-counted. The green energy is then fed into the electrical grid (by mandate), and the accompanying REC can then be sold on the open market.
*Source Wikipedia
Now that you are fully educated on RECs, are people/company's really willing to buy and sell these things. While there is no official REC czar (per my boss who will remain nameless) in the United States, people/companies are trading these ghost goods. But for what and how are they accounted for, and when do the expire? Do we know for sure? The answer, not exactly but it seems that customers want green options, and some companies want to show that they have green options. One of these companies is Frito Lay with its Sun Chips product. PepsiCo who owns Frito Lay has purchased RECs. These RECs match 100% of the electricity needed to produce SunChips snacks in the U.S. Electricity is one of several energy sources used to produce SunChips snacks.
We have coined the term Sunning the RECs meaning that the RECs have been sunned or consumed through advertising.
But the question is do RECs have a market? Do we as consumers want green? Well, it seems so even major sports teams like the Philadelphia Phillies are jumping on board. They have created a new site to advertise the fact that they have purchase RECs to offset their energy usage. RECs are becoming a marketing tool whether it is simply to attract consumers or really offset carbon we can't be certain but one thing is for sure RECs are here to stay.
We have coined the term Sunning the RECs meaning that the RECs have been sunned or consumed through advertising.But the question is do RECs have a market? Do we as consumers want green? Well, it seems so even major sports teams like the Philadelphia Phillies are jumping on board. They have created a new site to advertise the fact that they have purchase RECs to offset their energy usage. RECs are becoming a marketing tool whether it is simply to attract consumers or really offset carbon we can't be certain but one thing is for sure RECs are here to stay.
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