What is a REC?

A Renewable Energy Certificate (REC) is a tradable environmental asset that represents the environmental attributes of one-megawatt hour (MWh) of renewable electricity. RECs are sold separately from the actual power generated to consumers who want to essentially “green” their existing power source. This arrangement provides the renewable energy generator an additional revenue stream while allowing the REC purchaser to keep their existing utility and make the environmental stewardship claim that a certain percentage of their electricity is generated from renewable resources.