Frequently Asked Questions about RECs

A renewable energy credit (REC) is created when one megawatt-hour ("MWh") of renewable electricity is fed into the power grid. A REC represents the positive environmental benefits associated with renewable energy generation. RECs have economic value and can be bought and sold, which allows anyone in any part of the country to support green energy.

Renewable energy is generated from sources that are essentially inexhaustible. While fossil fuels take millions of years to form, renewable energy sources, such as wind, solar, biofuel, geothermal, water, and the decay of organic matter, are replenished at the same rate they are used. Renewable energy is clean and has a low impact on the environment. Compared to traditional fossil fuel generation, renewable energy is a more sustainable and environmentally friendly source of electricity.

Renewable energy facilities generate electrons that are no different from the electrons generated by coal or nuclear. The benefits of renewable energy stem from the environmentally friendly way in which these electrons are generated. RECs simply represent these quantifiable environmental benefits and allow the holder legitimate legal claim to them.

When you buy a REC, you are not consuming renewable energy directly. To do so would require you either to put a renewable energy generator on-site (like a solar panel on your roof) or to build power lines direct from a project to your house or business (usually this isn't possible). RECs were developed to remove these barriers so that consumers could directly support renewable energy projects. Since the holder of a REC is paying the premium for renewable energy fed onto the power grid, the holder can take credit for the environmental benefits associated with the renewable energy produced.

RECs are the mechanism that allows the environmental benefits of renewable energy to be tracked and traded.

OneEnergy Renewables only sources RECs from renewable energy projects that are registered in a REC tracking system, such as the Midwest Renewable Energy Tracking System. The actual amount of electric generation at each site is reported to the tracking system by a neutral, qualified third party. The number of RECs created in the tracking system equals the actual energy production of each particular facility. Every REC is given a serial number, which allows it to be tracked back to its specific site and time period of generation. OneEnergy Renewables' RECs are held in accounts in these tracking systems, much like money is held in a bank account.

When a REC is used to match a voluntary customer's energy use, the REC must be retired in the tracking system and cannot be traded or sold again. This system of REC creation, tracking, and retirement prevents double-counting and provides assurance to the consumer that they are supporting renewable energy.

There are environmental and economic benefits to buying RECs. Most obviously, RECs support renewable energy generation, which has a lower impact on the environment. Additionally, society benefits by having a more diverse and secure energy network. Renewable energy is produced locally, which supports local economies and reduces our reliance on foreign energy. And, purchasing renewable energy is good for your business. Consumers are becoming more and more concerned with sustainability and want to support companies that are working to reduce their carbon footprint. Using RECs to offset your electricity consumption is a good way to add value to your brand and earn customer loyalty.

All of OneEnergy Renewables' RECs are Green-e certified. Green-e Energy is a third-party nonprofit regulatory system and sets standards for transparency and renewable project eligibility.

Money generated from the sale of RECs goes toward supporting in-the-ground renewable energy projects. RECs are a major funding source that project owners rely upon. The value of RECs is considered and included in the financing of renewable energy projects.

OneEnergy Renewables also develops its own renewable energy projects, meaning that your partnership with us promotes the development of new projects in several ways.

Yes, REC purchases can earn your building points towards LEED certification. Typically a two-year commitment is required. RECs are an easy way to build towards a LEED certification because they neither require you to install new technology on your building, nor to make special arrangements with your utility. Find out more about working with OneEnergy Renewables for your LEED project.

No. Green-e's certification requirements clearly stipulate that renewable energy can either be used towards RPS laws or sold as RECs. Not both.

In the vast majority of cases, RECs are the counting mechanism that utilities must use to demonstrate compliance with RPS mandates. Those utilities must own enough eligible RECs to meet the mandate. RECs that are used by utilities to meet an RPS mandate are retired in tracking systems and cannot be sold to voluntary buyers. This is another reason why OneEnergy Renewables exclusively sources RECs from projects registered in a tracking system.

All Green-e certified RECs must satisfy the Green-e performance test for additionality. The Green-e test determines which renewable energy projects are eligible to be sold in the voluntary market, and which are not. These requirements are:

• The project must not have been mandated by law, regulators, or courts.
• The renewable energy must have been generated from one of the following sources: wind, solar, landfill and other biogas, small low-impact hydropower, and certain biomass types.
• Projects must have been built after 1997.

Green-e has determined that projects that pass this test are not "business as usual" in the context of electric generation project development in the U.S. Green-e updates these standards to reflect current market conditions.

• The United States Government via the Energy Policy Act of 2005 and Executive Order 13423
• EPA Green Power Partnership
• EPA Climate Leaders program
• Green-e
• The Climate Registry's "Climate Registered" Program
• U.S. Green Business Council - LEED
• Oregon Department of Energy (ODOE)
• World Resources Institute (WRI) - Greenhouse Gas Protocol
• Seattle Climate Partnership

You can learn more at these independent, third-party sites:

Green-e: The Green-e Energy program is run by the Center for Resource Solutions (CRS). This third-party nonprofit organization certifies renewable energy projects and creates minimum standards that all projects must meet. Green-e is the standard bearer for the REC industry and provides a quality guarantee for any REC purchases.

EPA Green Power Partnership: The federal government helps businesses interested in purchasing green energy determine which option is best for that business by offering expert advice, technical support, tools and resources. RECs are one option supported by the Green Power Partnership.