Most U.S. states have Renewable Portfolio Standards (RPS)—policies requiring that a specific percentage of retail electricity sales come from renewable sources like wind, solar, and hydroelectric power. To meet these mandates, utilities and businesses can either procure renewable power directly or purchase Renewable Energy Certificates (RECs).
What Are RECs?
A Renewable Energy Certificate (REC) represents the environmental attributes of one megawatt-hour (MWh) or 1,000 kilowatt-hours (kWh) of renewable electricity. RECs are issued when a qualified renewable energy generator produces power and feeds it into the grid.
RECs can be:
✅ Bundled with physical electricity – The power and its renewable attributes are sold together.
✅ Sold separately (Unbundled RECs) – The REC is traded independently, allowing companies to offset their carbon footprint even if they cannot source renewable power directly.
Why RECs Matter
If a business purchases electricity without the associated RECs, it cannot legally claim to be using renewable energy. Only the holder of the REC has the right to make sustainability claims regarding that energy usage.
At OES, we help businesses navigate REC purchases—whether to meet regulatory requirements or achieve voluntary sustainability goals. Our expertise ensures that clients procure the right mix of energy solutions to support their budget, compliance, and ESG initiatives.