Renewable Energy Credits (RECs)

What is a renewable energy certificate (REC)?

Why do I want to buy RECs?

How do I purchase a REC?

How many RECs should I buy?

What do I get if I purchase RECs?

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What is a renewable energy certificate (REC)?

Renewable energy certificates (RECs) are the mechanism by which energy suppliers and other entities such as businesses, organizations, and homeowners can purchase clean energy.  Specifically, one REC equals the environmental benefits of producing 1,000 kilowatt-hours (kWh) of electricity from a clean energy generation source rather than a fossil fuel source.  Since burning fossil fuels to generate electricity releases a lot carbon dioxide and other greenhouse gases, choosing to produce electricity from clean, renewable resources reduces the amount of pollution released from generating electricity.  

Technically, when an energy supplier purchases clean energy for its customers it is buying RECs equal to the amount of electricity the customers use.  The energy supplier then "bundles" the cost of the REC with the cost of electricity service to deliver clean energy to its customers. 

However, anyone can choose to buy RECs from a REC marketer.  The value of not polluting, essentially a carbon offset can be sold to others to offset their pollution.  Purchasing RECs helps to decrease one’s environmental footprint.

The graphic below helps to illustrate what a REC is.  Remember, when you buy clean energy from an energy supplier, the supplier passes the REC onto you with electricity service.  When you buy a REC through a REC marketer, you are just purchasing the environmental benefit of the clean energy without electricity service.

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Why do I want to buy RECs?

There are several great reasons to purchase RECs.
 
1. Buying RECs increases the vitality of the renewable energy market and encourages additional generation projects.  Renewable energy resources do not receive the same level of government subsidies as fossil fuel resources.  By supporting renewable energy technologies through other market channels, consumers can help to increase the availability of the technology and spur more project development. 

2. It’s a way to reduce your environmental footprint.  As more electricity is produced from renewable sources, less electricity will be produced from fossil fuels.  This helps decrease emissions from electricity generation that leads to smog, acid rain, and global warming.        
 
3. Renewable electricity generation can provide new industries for America.  As regional demand for clean energy increases, those regions become attractive to clean energy suppliers. For example, our region already hosts a world class solar panel manufacturing facility and facilities for making wind turbine components.  Small businesses benefit through installer networks, contracts and other transactions. Collectively this results in hundreds of high paying jobs, which benefits local economies. 
 
4. It’s easy!  You can make a small purchase now instead of buying a hybrid car or installing solar panels.  It's just not always possible to make a large financial commitment to a new car or a home improvement project.  However, it is easy to make a purchase supporting cleaner energy generation.

5. Anyone can buy RECs.  Homeowners, renters, businesses, congregations can all buy RECs.  It's a great option if you don’t pay for electricity directly, i.e., if it is included in your rent or lease.

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How do I purchase a REC?

There are several businesses that sell RECs on-line.  Residents, businesses and other groups can purchase RECs just like you purchase other products through the Internet.  And depending on the marketer, RECs can be a one-time purchase or can be smaller monthly payments.  The REC marketers participating in Clean Energy Rewards are posted here.  Click through to their web sites to learn more about the product options. 

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How many RECs should I buy?

To be eligible for rewards choose to purchase the number of RECs equivalent to at least a 50% of the electricity you use a year.  Of course you are encouraged to offset 100% of your electricity use too!  The Clean Energy Rewards program will provide consumers with rewards up to 20,000 kWh per year. 
 
You can estimate the number of RECs to purchase in one of three ways:

• Use your electric bill, if you have one.  Find the "Usage History" on your electric bill.  Add the usage (in kWh) of all 12 months.  Or, take an average month and multiply by 12 to get an estimate.  Buy the REC equivalent of at least 50% of your annual electricity consumption to receive Clean Energy Rewards.

• Use the chart below.

Type of Home	1-2 Bedroom Apt., Townhouse, or Single-family house	3-4 Bedroom Townhouse or Single-family house	4+ Bedroom Single-family house
Estimated Monthly Electricity Use (kWh)	500	1,000	1,500
Estimated Annual Electricity Use (kWh)	6,000	12,000	18,000
100% Electricity Use Offset (kWh equivalent)	6,000	12,000	18,000
50% Offset -- Minimum REC purchase to receive rewards (kWh equivalent)	3,000	6,000	9,000

• Businesses and organizations: click here for a chart to estimate the electricity use of your facility.  Follow the 4 easy steps to determine how many RECs to purchase.

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