Many companies that cannot invest in solar panels or wind turbines buy renewable energy credits. These credits represent renewable energy resources related to energy generation. Certificate recipients are eligible for renewable energy certificates (RECs). These credits can be sold, traded or traded and green energy credits represent the source of the generated energy.
RECs are similar to carbon emission trade certificates. For example, for every 1000 kWh of electricity generated, a wind power plant will be credited with a renewable energy credits. A designated agency approves the production and gives a number for each certificate.
The electricity generated by the wind farm is then routed to the commercial power grid (this is a requirement for a REC). At this point, the REC wind farm can be sold by the owner.
Renewable Energy Credits Market
The markets for renewable energy credits are divided into two areas: harmonious and voluntary. Compliance markets are available in 29 states in the Columbia Region in the US and Puerto Rico. Electricity companies in these states must provide a percentage of power from renewable sources until a certain time.
There are many controversies about the marketing of green energy credits that critics point out to defects in the system. Solar and wind power may be intermittent as they are connected to natural factors (sun and wind) outside our control.
Critics argue that unreliable electricity generation from the sun and wind cannot be used to cancel out other energy sources. The advocates of green energy credits show that greenhouse gas, sulfur, nitrogen and other pollutants are generally reduced.
Renewable Energy Credits Sales Business
The business of selling renewable energy credits has grown rapidly, but there is no national record for the issuance of RECs. There is a voluntary program to ensure that certificates are calculated and not counted. This program is a form of control in which a third party confirms the formation and sale of a REC.
Most RECs today have uniquely identifiable and traceable numbers. Systems are available on a regional basis that can ensure continuous monitoring of green energy credits, and this monitoring capability will grow as the green energy company continues to grow.