What are renewable energy credits?



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    When a renewable energy generator produces one kilowatt hour of energy, it also produces a renewable energy credit. The two can be sold together as renewable energy, or separately as generic energy and a renewable energy credit. Buying an REC simply means that you’ve made a point of giving your financial support to energy resources. If you spend a little more to buy wind energy, for example, the energy delivered to your house will be the same as always because there is no difference in the energy regardless of the source. However, if you have an equivalent number of renewable energy credits, it means that you’ve supported that much renewable energy existing, even if it doesn’t make up 100% of the electrical pulses that enter your home.

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