What is a REC?

June 5, 2018

Some of our clients have been coming to us with an important set of questions. Should I pursue installing a renewable energy system behind my meter? Or should I just buy RECs? What is a REC?

 

Well, there is an important distinction, and understanding the issues requires learning more about how energy markets are regulated. RECs document your claim to renewable energy produced by a renewable generator putting energy onto the grid. They have value in certain regulated markets based on the type of generator technology, and the requirement that brown power generators purchase and retire a certain quantity of RECs in order to avoid an Alternative Compliance Payment (ACP). Every energy market treats RECs differently, and this impacts their value. To view some slides from CRS, click here. CRS is a California based non-profit working internationally to mitigate climate change and support renewable energy markets. For more information on SRECs, check out our FAQ

 

We can you help you navigate this complex decision.

 

For some energy dense computing operations, owning or leasing a dedicated renewable energy system might be the best option. Sangha is your partner when you are ready to contract with an Engineering, Procurement, and Construction company to install and energize a dedicated generator for renewable energy.   

 

 

Lawrence Berkeley Lab has a great Annual Report on the renewables portfolio standards (RPS) for each state.  In addition, they post compliance summary data, and demand projections for each state with a RPS.  

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