Meeting Your Company's Clean Energy Goals With Recs

Clean, renewable energy is more than just a buzzword. As green technology becomes more cost-effective and the public comes to understand the importance of environmental causes, more and more companies are shifting their energy portfolios to clean electricity generation. This switch isn't just good for the environment; it's good for your company's bottom line as well. Whether you are shifting your energy usage to greener technologies for the benefit of the planet or to qualify for government subsidies, renewable energy certificates (RECs) are the best instrument available to meet your goals.

RECs Demystified

Renewable energy certificates are both financial instruments and a method for tracking the generation of renewable energy. When your company purchases a REC, you are purchasing evidence of power generation. This distinction can be confusing for companies that are entering this market for the first time. In essence, your company is buying a claim on the environmental benefits of a single megawatt-hour of clean electricity. This claim is not a carbon offset, nor is it a purchase of actual power. When you buy RECs, you are showing your company's financial support for renewable power generation.

How Can RECs Help You Meet Your Renewable Energy Goals?

Companies will typically purchase RECs when local renewable energy is not available. For example, RECs can be used to meet a commitment to renewable energy if local generation is provided entirely through fossil fuels. In these cases, your company can continue to purchase electricity from fossil fuel providers, but "offset" those purchases with non-local RECs. Since RECs are not energy purchases, there is no need for your company's physical infrastructure to be located on the same grid as the REC seller. While this does mean that your company is effectively paying for energy twice, the purchase of RECs can be used both to support renewable generation and to prove that you are in compliance with clean energy usage standards. You'll accumulate PJM energy credits as you generate energy.

Buying and Selling RECs

One of the primary benefits of RECs is that they are non-localized. This important aspect means that your company can purchase your RECs from any properly certified seller or source, even if they are not a part of your local grid. There are a variety of reasons that this might desirable, ranging from a lack of local availability to a desire to support specific renewable initiatives. Since each REC includes data on its source, emissions level, and other environmental aspects, companies can use intentional REC purchases to build a specific portfolio of green energy support.