{"id":23384,"date":"2025-12-15T16:06:18","date_gmt":"2025-12-15T16:06:18","guid":{"rendered":"https:\/\/chariotenergy.com\/chariot-university\/renewable-energy-credits\/"},"modified":"2025-12-16T21:30:32","modified_gmt":"2025-12-16T21:30:32","slug":"renewable-energy-credits","status":"publish","type":"page","link":"https:\/\/chariotenergy.com\/chariot-university\/renewable-energy-credits\/","title":{"rendered":"Renewable Energy Credits (RECs): The Currency of Clean Power"},"content":{"rendered":"<style>\n.chariot-article {\n  max-width: 800px;\n  margin: 0 auto;\n  padding: 40px;\n  font-family: -apple-system, BlinkMacSystemFont, \"Segoe UI\", Roboto, Oxygen, Ubuntu, sans-serif;\n  font-size: 18px;\n  line-height: 1.8;\n  color: #333;\n}\n.chariot-article h1 {\n  font-size: 2.5em;\n  font-weight: 700;\n  line-height: 1.2;\n  margin: 0 0 30px 0;\n  color: #1a1a1a;\n}\n.chariot-article h2 {\n  font-size: 1.8em;\n  font-weight: 600;\n  line-height: 1.3;\n  margin: 50px 0 20px 0;\n  color: #1a1a1a;\n  border-bottom: 2px solid #f7931e;\n  padding-bottom: 10px;\n}\n.chariot-article h3 {\n  font-size: 1.4em;\n  font-weight: 600;\n  line-height: 1.4;\n  margin: 40px 0 15px 0;\n  color: #333;\n}\n.chariot-article h4 {\n  font-size: 1.2em;\n  font-weight: 600;\n  margin: 30px 0 10px 0;\n  color: #444;\n}\n.chariot-article p {\n  margin: 0 0 20px 0;\n}\n.chariot-article img {\n  max-width: 100%;\n  height: auto;\n  border-radius: 8px;\n  margin: 30px 0;\n  display: block;\n}\n.chariot-article figure {\n  margin: 30px 0;\n}\n.chariot-article figcaption {\n  font-size: 0.9em;\n  color: #666;\n  text-align: center;\n  margin-top: 10px;\n  font-style: italic;\n}\n.chariot-article ul, .chariot-article ol {\n  margin: 20px 0 20px 30px;\n  padding: 0;\n}\n.chariot-article li {\n  margin-bottom: 12px;\n  line-height: 1.6;\n}\n.chariot-article a {\n  color: #f7931e;\n  text-decoration: none;\n  border-bottom: 1px solid transparent;\n  transition: border-color 0.2s;\n}\n.chariot-article a:hover {\n  border-bottom-color: #f7931e;\n}\n.chariot-article blockquote {\n  border-left: 4px solid #f7931e;\n  margin: 30px 0;\n  padding: 20px 30px;\n  background: #f9f9f9;\n  font-style: italic;\n  color: #555;\n}\n.chariot-article strong {\n  font-weight: 600;\n  color: #1a1a1a;\n}\n.chariot-article em {\n  font-style: italic;\n}\n.chariot-article hr {\n  border: none;\n  border-top: 1px solid #e0e0e0;\n  margin: 40px 0;\n}\n.chariot-article table {\n  width: 100%;\n  border-collapse: collapse;\n  margin: 30px 0;\n}\n.chariot-article th, .chariot-article td {\n  padding: 12px 15px;\n  text-align: left;\n  border-bottom: 1px solid #e0e0e0;\n}\n.chariot-article th {\n  background: #f5f5f5;\n  font-weight: 600;\n}\n@media (max-width: 768px) {\n  .chariot-article {\n    padding: 20px;\n    font-size: 16px;\n  }\n  .chariot-article h1 { font-size: 2em; }\n  .chariot-article h2 { font-size: 1.5em; }\n  .chariot-article h3 { font-size: 1.25em; }\n}\n<\/style>\n<div class=\"chariot-article\">\n<figure class=\"wp-block-image\"><img fetchpriority=\"high\" alt=\"Wind farm at sunset\" class=\"wp-image-1514\" decoding=\"async\" fetchpriority=\"high\" height=\"904\" src=\"https:\/\/chariotenergy.com\/wp-content\/uploads\/2025\/12\/wind-farm-2-1.jpg\" width=\"1920\" title=\"\"><figcaption class=\"wp-element-caption\">Wind turbines spine to create electricity \u2014 as well as renewable energy certificates.<\/figcaption><\/img><\/figure>\n<div aria-hidden=\"true\" class=\"wp-block-spacer\" style=\"height:30px\"><\/div>\n<p>Today, it\u2019s easier than ever to begin your journey toward<a href=\"https:\/\/chariotenergy.com\/blog\/green-living-in-texas\/\"> living a more sustainable lifestyle<\/a>, from ridding single-use plastics to using less water when you shower. But for most people, it starts with an investment in <a href=\"https:\/\/chariotenergy.com\/blog\/what-is-green-energy\/\">green energy<\/a>. While installing solar panels on the roof of your home is a great investment, it\u2019s not the only way you can harness the power of our sun. <\/p>\n<p>Meet Renewable Energy Credits. These credits<br \/>\n(also referred to as Renewable Energy Certificates or RECs) ensure the<br \/>\nelectricity you purchase is generated from green energy sources such as wind<br \/>\npower, solar and geothermal. If you want to power your home with renewable<br \/>\nenergy, you should have a basic understanding of how RECs work, as they<br \/>\nrepresent the bulk of how renewable energy is purchased in the U.S. <\/p>\n<p>In this article, we\u2019ll explain:<\/p>\n<ul class=\"wp-block-list\">\n<li>What a REC is <\/li>\n<li>How RECs are created<\/li>\n<li>How RECs work<\/li>\n<li>The benefits of RECs<\/li>\n<li>The difference between RECs and solar RECs<br \/>(SCRECs)<\/li>\n<li>The difference between RECs and carbon offsets<\/li>\n<\/ul>\n<h2 class=\"wp-block-heading\">What is a renewable energy certificate (REC)?<\/h2>\n<p>To understand what a REC is, you need to<br \/>\nunderstand the energy grid. The \u201cgrid\u201d is an umbrella term for our entire energy<br \/>\nnetwork \u2014 the power plants, transmission stations, powerlines, wires, sensors<br \/>\nand poles. Unless you completely generate your own electricity, we\u2019re all<br \/>\nconnected to one another through the power grid. It\u2019s how we receive the<br \/>\nelectricity that powers our lives. <\/p>\n<p><em>Why it matters<\/em>: Be it fossil fuels, renewables or nuclear power, these sources of energy all generate electricity. Electricity enters the grid from all of these different sources. So, once it reaches your house, it\u2019s virtually impossible to tell whether your electricity comes from <a href=\"https:\/\/chariotenergy.com\/blog\/whats-the-difference-between-regular-and-green-energy\/\">traditional or green energy<\/a>. This is where RECs enter the picture.<\/p>\n<p>RECs solve the issue of wondering about the<br \/>\nsource of your electricity. A REC is a sellable, tradable and barterable legal<br \/>\ninstrument that represents the environmental benefits of renewably generated<br \/>\nelectricity.<sup>1<\/sup> So, whoever owns these certificates (which comes with<br \/>\npurchasing electricity) gets to claim that the power they purchased comes from<br \/>\nrenewable sources. <\/p>\n<p>Specifically, electricity that\u2019s added to the<br \/>\ngrid CANNOT be considered renewable <em>unless<br \/>\n<\/em>it has a REC to substantiate its environmental benefits. Because of this<br \/>\nfact, RECs are the currency of all renewable energy on the market today.<\/p>\n<h2 class=\"wp-block-heading\">How are RECs created?<\/h2>\n<p>RECs are created from any of the following<br \/>\nrenewable energy sources:<\/p>\n<ul class=\"wp-block-list\">\n<li>Solar<\/li>\n<li>Wind<\/li>\n<li>Geothermal<\/li>\n<li>Biomass<\/li>\n<li>Certain hydropower sources<\/li>\n<\/ul>\n<p>Since Chariot is a solar energy company, let\u2019s<br \/>\nuse a solar farm as an example: <\/p>\n<ul class=\"wp-block-list\">\n<li>A solar farm produces a certain amount of<br \/>electricity. <\/li>\n<li>They are granted one green energy credit from<br \/>a designated third-party agency. <\/li>\n<li>Each certificate authenticates one megawatt-hour\u2019s<br \/>worth (1 MWh, or 1,000 kWh) of electricity produced from renewable energy<br \/>generators. <\/li>\n<\/ul>\n<p>To be considered a REC, the green energy<br \/>\ncreated on that solar farm must be sold and added to the grid. This means if<br \/>\nyou have solar panels generating electricity for your home, you aren\u2019t creating<br \/>\nRECs unless you add it to the grid. This is why the energy grid plays such a<br \/>\nkey role in the creation of RECs.<\/p>\n<p>Each certificate is unique in that once it is<br \/>\nsold, it cannot be used again. It\u2019s considered to be \u201cretired.\u201d <\/p>\n<h2 class=\"wp-block-heading\">How do RECs work?<\/h2>\n<p>RECs are the basis of all green and renewable energy plans, even ours at Chariot Energy! When you enroll in a renewable energy plan, or even a partial renewable plan, your Retail Electricity Provider (REP) trades and buys RECs on your behalf to ensure you\u2019re doing your part to contribute to the green economy. Pretty cool, right? You can actually see the percentage of renewable energy you\u2019re purchasing on your <a href=\"https:\/\/chariotenergy.com\/blog\/understanding-your-efl\/\">Electricity Facts Label (EFL)<\/a>. <\/p>\n<p><a href=\"https:\/\/chariotenergy.com\/blog\/solar-for-business\/\">Businesses also tap into the green power<\/a> market and substantiate your commitment to the environment via RECs. The two most popular methods are:<\/p>\n<ul class=\"wp-block-list\">\n<li><strong>Tax<br \/>equity investments.<\/strong> Tax equity allows companies to buy green<br \/>power in the form of RECs and helps develop local green power infrastructure<br \/>such as wind or solar farms. <\/li>\n<li><strong>Power<br \/>purchase agreements (PPAs). <\/strong>There are two types of PPAs: physical and financial.<br \/>Both are financial arrangements where companies purchase RECs to claim<br \/>emissions reductions, but with a physical PPA, power generators actually supply<br \/>the grid with electricity that powers a company\u2019s facilities.<\/li>\n<\/ul>\n<h2 class=\"wp-block-heading\">What are the benefits of RECs?<\/h2>\n<p>While having\u00a0solar panels on your home is an excellent idea, that sort of renewable energy system isn\u2019t a financially feasible option for most people \u2014 not yet, at least. RECs are an easy way for people who want to make a difference to have a positive impact on the world. Specifically, RECs help you:<\/p>\n<ul class=\"wp-block-list\">\n<li>Directly invest in renewable energy projects<br \/>and infrastructure<\/li>\n<li>Indirectly lower your carbon footprint by<br \/>offsetting fossil fuel demand<\/li>\n<li>Diversify your region\u2019s energy portfolio<\/li>\n<li>Make the energy grid more reliable as the<br \/>demand for electricity increases with population growth<\/li>\n<\/ul>\n<h2 class=\"wp-block-heading\">What\u2019s a Solar Renewable Energy Credit (SCREC)?<\/h2>\n<p>Certain states employ a concept called a<br \/>\nRenewable Portfolio Standard. This mandate requires states to not only prove a<br \/>\ncertain percentage of power sourced by renewables, but also by solar<br \/>\nspecifically. Also known as a \u201csolar carve out, \u201d it refers to states having to<br \/>\n\u201ccarve out\u201d or designate a particular chunk of its energy portfolio for solar<br \/>\nelectricity generation.<sup>2<\/sup><\/p>\n<p>That\u2019s why solar energy, in particular, has<br \/>\nits own kind of certificate. In fact, these are the certificates Chariot<br \/>\ntrades! SCRECs serve to differentiate solar from the rest of the renewable<br \/>\nenergy crowd. <\/p>\n<p>However, RECs and SCRECs represent only one slice<br \/>\nof the larger clean energy pie. Consumers and businesses also cut their carbon<br \/>\nfootprint through Voluntary Emission Reductions, more commonly known as \u201ccarbon<br \/>\noffsets.\u201d<\/p>\n<h2 class=\"wp-block-heading\">What is the Difference Between RECs and Offsets?<\/h2>\n<p>RECs and carbon offsets are quite similar, but<br \/>\nrather than determining the number of kilowatt-hours produced, carbon offsets<br \/>\nare measured and sold by the tons of greenhouse gas emissions avoided. So,<br \/>\nwhile they accomplish much of the same outcome (i.e. reducing CO<sub>2<\/sub><br \/>\nemissions), their goals and reasons for existence are fundamentally different.<br \/>\nStill, many people often confuse them, which is why it\u2019s worth explaining their<br \/>\ndifferences.<\/p>\n<p>Offsetting carbon involves specific activities<br \/>\nthat reduce, capture or store carbon emissions such as planting trees. Trees<br \/>\ncapture and store carbon in the earth, which reduces the amount of CO<sub>2<\/sub><br \/>\nin the atmosphere. When you purchase a REC, you\u2019re buying green power that<br \/>\nproduces no emissions or pollution \u2013 not just offsetting or avoiding the<br \/>\nemissions you\u2019re generating.<\/p>\n<h2 class=\"wp-block-heading\">RECs Make Buying Renewably Sourced Electricity Possible<\/h2>\n<p>Now that you have a greater understanding of<br \/>\nhow clean energy works in the U.S., you are able to make more informed<br \/>\ndecisions when it comes to purchasing your next electricity plan. <\/p>\n<p>No longer do you have to settle for brown<br \/>\npower from fossil fuels. Today, with the use of RECs, you can truly know the<br \/>\nenergy you are purchasing is green, emission-free, and won\u2019t dirty the<br \/>\nenvironment. <\/p>\n<p>Are you ready to make the switch? <a href=\"https:\/\/chariotenergy.com\/contact\/\">Contact Chariot Energy<\/a> today and compare the options you have in your area. <\/p>\n<div aria-hidden=\"true\" class=\"wp-block-spacer\" style=\"height:100px\"><\/div>\n<hr class=\"wp-block-separator has-css-opacity\"\/>\n<p><strong>Sources<\/strong>:<\/p>\n<\/p>\n<ol class=\"wp-block-list\">\n<li><a aria-label=\"https:\/\/ghgprotocol.org\/sites\/default\/files\/standards_supporting\/FAQ.pdf (opens in a new tab)\" href=\"https:\/\/ghgprotocol.org\/sites\/default\/files\/standards_supporting\/FAQ.pdf\" rel=\"noreferrer noopener nofollow\" target=\"_blank\">https:\/\/ghgprotocol.org\/sites\/default\/files\/standards_supporting\/FAQ.pdf<\/a><\/li>\n<\/ol>\n<div class=\"clear\"><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Learn why Renewable Energy Certificates (RECs) are vital to the success of the green energy industry and how they help reduce greenhouse gas emissions.<\/p>\n","protected":false},"author":5,"featured_media":23534,"parent":627,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"elementor_header_footer","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"class_list":["post-23384","page","type-page","status-publish","has-post-thumbnail","hentry"],"acf":[],"_links":{"self":[{"href":"https:\/\/chariotenergy.com\/wp-json\/wp\/v2\/pages\/23384","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/chariotenergy.com\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/chariotenergy.com\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/chariotenergy.com\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/chariotenergy.com\/wp-json\/wp\/v2\/comments?post=23384"}],"version-history":[{"count":0,"href":"https:\/\/chariotenergy.com\/wp-json\/wp\/v2\/pages\/23384\/revisions"}],"up":[{"embeddable":true,"href":"https:\/\/chariotenergy.com\/wp-json\/wp\/v2\/pages\/627"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/chariotenergy.com\/wp-json\/wp\/v2\/media\/23534"}],"wp:attachment":[{"href":"https:\/\/chariotenergy.com\/wp-json\/wp\/v2\/media?parent=23384"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}