People also ask
What is a green energy credit (REC)?
For example, a wind farm would be credited with one green energy credit for every 1000 kWh of electricity produced. A designated agency certifies the production and issues a number for each certificate. The electricity produced by the wind farm is then routed into the commercial electrical grid (this is a requirement for an REC).
What is an SREC credit?
An SREC, or Solar Renewable Energy Credit, is given to a homeowner for every MW hour of solar electricity their system generates. A 7kW system generating 8.5MWh would, therefore, earn 8.5 credits annually.
How do green energy credits work in Arizona?
In states like Arizona, the strong sunshine is a daily fact of life while in northern Ohio clouds hide the sun for days on end throughout the year. Selling green energy credits encourages the use of renewable resources for electricity production by providing a financial incentive to companies investing in these energy sources.
Can energy certificates be sold or used as credits?
Energy Certificates can be sold, but are typically used as a credit against their own power usage. The eligibility to use RECs expires at the end of the fifth calendar year following the year they were generated.