What are RECs?
When a renewable energy producer, whether it’s a huge firm or a single household, sends 1000 kWh of energy into the power grid they receive one REC. Hence a REC represents 1000 kWh of energy, and the producer can sell the certificate to individuals and firms. The REC is trackable so governments can see how certificates spread and who owns them. However, the renewable energy generated, whether through solar, wind, hydropower, or other means is not traceable. The power goes into the grid and hence becomes part of the energy pool. But the producer’s certificate represents the electricity generated.Article continues …
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