What is REC?
A renewable energy certificate, or RECs is a market-based instrument that represents the green attributes of renewable electricity generation. RECs are issued when one megawatt-hour (MWh) of electricity is generated and delivered to the electricity grid from a Renewable Energy (RE) source.
How It Works?
RECs are used to track and validate the production of 1 MWh of RE by any renewable source, which are used to offset Scope 2 emissions of your carbon footprint. RECs provide you with the option to choose energy generated by RE sources and at the same time enabling your company to claim that it is being powered by RE.
REC Mechanism
Electrical Grid
RE Source
Registry
RECs with unique serial numbers are issued by the Registry
Consumer
Consumer claims ownership of the green attributes of generated RE
Renewable Energy Certificates
RECs are retired upon claim for sustainability purposesUnable to identify source of electricity
RE Source
Electric Grid
Consumer
Non-RE Source
Consumer
RE generated is mixed into the grid alongside the energy generated from non-renewable sources. The consumers are unable to identify whether their source of electricity is generated from renewable sources.
Option to choose green energy by purchasing RECs
RE Source
Electric Grid
Consumer
Non-RE Source
Consumer
Applying RECs
Purchasing RECs
By purchasing RECs, the consumers are able to verify and claim that they are being powered by RE. RECs provide the consumers an option to choose their generation source to support their sustainability goals and commitments.
REC Mechanism
Unable to identify source of electricity
Electrical Grid
RE Source
Registry
RECs with unique serial numbers are issued by the RegistryConsumer
Consumer claims ownership of the green attributes of generated RERenewable Energy Certificates
RECs are retired upon claim for sustainability purposesRE generated is mixed into the grid alongside the energy generated from non-renewable sources. The consumers are unable to identify whether their source of electricity is generated from renewable sources.
Unable to identify source of electricity
Electrical Grid
RE Source
Registry
RECs with unique serial numbers are issued by the RegistryConsumer
Consumer claims ownership of the green attributes of generated RERenewable Energy Certificates
RECs are retired upon claim for sustainability purposesRE generated is mixed into the grid alongside the energy generated from non-renewable sources. The consumers are unable to identify whether their source of electricity is generated from renewable sources.
Join an expanding corporate community that pledges to be powered by 100% Renewable Energy.
Our green solutions can be used by corporates to provide detailed proofs in support of environmental, social, and governance claims.
What We Offer?
We Buy
If you are a RE asset owner who wants to monetise your green attributes.
- Zero upfront cost & hassle-free.
- Support RE market and improve RE accessibility
- Passive recuring income on top of the income or savings generated from existing solar plant
We Sell
If you are a company who wants to comply to ESG reporting and build a sustainable image.
- Pathway to reduce scope 2 emissions.
- Promote your company’s commitment to RE Cycle
- Reduce carbon footprint while avoiding CAPEX on RE facilities
FAQ
What is the objective of the REC mechanism?
REC mechanism is a market-based instrument to promote renewable energy and to facilitate the integrity of renewable energy purchase.
How much does a REC represent?
One REC represents 1MWh of renewable energy generated.
Are there various kinds of RECs?
Typically, RECs are segregated into two categories – bundled and unbundled. Bundled RECs are RECs that are sold with their associated energy produced whereas unbundled RECs are sold separately from the underlying energy. Both kinds of RECs can be generated from various renewable sources such as solar, wind & hydro.
Why should I sell my RECs?
RECs are part and parcel of your renewable power plant. Selling RECs will encourage and promote investment into your plant, at the same time you will be able to generate passive recurring income for your business. At Solarvest, we offer you a hassle-free experience to sell your RECs.
Why should I purchase RECs?
By purchasing RECs, you are one step closer to achieve your company’s sustainability goals while promoting the green agenda and also boost your company’s sustainability image on a global scale.
Are there any requirements to fulfil in order to sell RECs?
In Malaysia, if you are an owner of a solar plant or solar rooftop asset, you will be able to sell RECs as long as you are not under the LSS scheme. Other schemes like NEM, SELCO & FiT are also allowed to sell RECs. If you are uncertain, talk to us and we will help in verifying your solar asset’s credentials.
If I were to purchase RECs, how can I ensure that the source of energy is coming from renewable sources?
You will receive an internationally recognised certificate that proves the credentials of your renewable energy source.
How can I ensure that my REC is unique?
Our REC transactions are done utilising blockchain technology as they are tangible assets. Blockchain technology is a distributed database or ledger that is shared among many computer networks so that the transactions cannot be altered. Each REC is generated with a unique serial number that is specific to the REC itself. Through this, you will be able to verify your ownership of each REC that you purchase
How does a REC look like?
Is there a limit to the amount of RECs I can purchase?
This depends on your sustainability targets. Most companies typically purchase RECs that is equal or more than their energy consumption for a particular reporting year.
Blogs
-
-
Why are RECs important?
Why are RECs important? &nsbp; Electricity that is produced by renewable energy generators is fed into the grid where the energy it creates from the movement of electrons becomes indistinguishable from the energy generated by other sources such as traditional coal power plants. The electricity......
21 September, 2018 REC -
