How much do RECs cost?

Rates for 2015 to 2017 RECS purchased have averaged between $0.15—$0.045 per kWh produced. In 2021, SREC prices range from $10 to over $400 depending on the state SREC market.

How do renewable energy credits RECs work?

Renewable Energy Certificates (RECs) are a market-based instrument that certifies the bearer owns one megawatt-hour (MWh) of electricity generated from a renewable energy resource. Once the power provider has fed the energy into the grid, the REC received can then be sold on the open market as an energy commodity.

How are renewable energy credits priced?

If you’re currently following the REC market in anticipation of buying RECs, however, you’ve probably noticed a steady climb in pricing. Over the past 15 months, the cost of a Green-e® Certified REC has risen from roughly $1 per REC to almost $8 per REC.

What is rec power?

A renewable energy certificate (REC) is a tradeable, market-based instrument that represents the legal property rights to the “renewable-ness”—or all non-power attributes—of renewable electricity generation.

How are REC prices determined?

How do REC prices vary across voluntary and mandatory markets? The voluntary market operates on a supply and demand balance, with REC prices correlated to the amount a voluntary buyer is willing to pay for a product, relative to the available supply of that product.

What is renewable obligation certificate?

Renewables Obligation Certificates (ROCs) ROCs are certificates issued to operators of accredited renewable generating stations for the eligible renewable electricity they generate. Operators can trade ROCs with other parties. ROCs are ultimately used by suppliers to demonstrate that they have met their obligation.

Do renewable energy certificates expire?

When do RECs expire? Green-e® Energy Certified sales that are made in a given calendar year must be generated within the 12 months of that calendar year, the six months before the calendar year began, or the three months after the calendar year has ended.

What does renewable content mean for electricity?

Renewable content is the percentage of your electricity that is generated from renewable resources, such as wind, solar, or hydro electric dams. It’s your option, and if it’s important to you that you lower your carbon footprint, be sure that your filter those plans that help you accomplish that goal.

How does power purchase agreement work?

A Power Purchase Agreement (PPA) is an arrangement in which a third-party developer installs, owns, and operates an energy system on a customer’s property. The customer then purchases the system’s electric output for a predetermined period.

What the heck is a REC?

Renewable energy has environmental and social value—and, ultimately, economic value—because it replaces fossil fuels. Similarly, a REC has value to the extent it represents the replacement of fossil-fuel electricity generation by new (or additional) renewable energy sources.