How RECs Work
Renewable Energy Credits (RECs) represent a right to market characteristics associated with a “green” or an environmentally friendly generating facility and energy security.
Producers of “green” power can sell RECs as well as the power itself, increasing their profits, while other interests can buy or trade RECs for reasons ranging from improving corporate image to satisfying regulatory compliance. When RECs are traded, the entity purchasing the RECs gains the right to claim environmental benefits.
Renewable Energy Certificates are also commonly referred to as Green Tags, Renewable Energy Credits, Tradable Renewable Certificates (TRCs), and environmental attributes.