A renewable energy certificate (REC) is a tradable instrument that represents 1 megawatt-hour (MWh) of electricity generated from renewable sources. In addition to the electricity itself, a REC embodies the non-energy attributes of that generation, such as reductions in greenhouse gas emissions. RECs allow electricity users to track the quantity of renewable electricity supplied and consumed. They not only verify that the total amount of electricity used by consumers is matched by renewable generation but may also incentivize additional renewable electricity projects if increased demand raises REC prices.
