A Renewable Energy Credit or REC, represents a positive environmental attribute from one megawatt-hour (or 1,000 kWh) of renewable energy generation. With the State of California mandating that utilities produce 33% of their electricity from renewable sources by 2020, RECs may soon have value.
Owners of solar photovoltaic systems can register their system with WREGIS (Western Renewable Energy Generation Information Systems), and begin the process of banking credits. Credits are not retroactive, and begin only once the system has been registered. While there currently is not a market to sell credits, new legislation expected to be passed shortly will allow a market for RECs.
REC purchasers will fall into two categories, voluntary and compliance. Voluntary buyers are progressive organizations like Whole Foods, Intel, and PepsiCo, that purchase RECs to offset their energy consumption and greenhouse gas emissions. Compliance buyers of RECs are electric utility companies or energy suppliers, who are required to get a certain percentage of their generation from renewable sources. This is called a Renewable Portfolio Standard (RPS).
Synergy has joined forces with Leaf Exchange to make it easy to register and track REC’s. Who is Leaf Exchange?
The Leaf Exchange was created to provide a simple way for residential and commercial solar system owners to get educated, get registered, and get paid for their Renewable Energy Certificates. We believe the California REC market will mature in the coming years and become an important incentive mechanism for system owners, installers, and financiers. The Leaf Exchange provides REC market education, WREGIS registration services, and an online marketplace for customers to get the best value possible for their Renewable Energy Certificates (RECs).
The registration process is automated and takes about 15 minutes. I can help any of our customers through this process.
The key is to register today, to start building the credits that can be exchanged into money in the future. Leaf Exchange california Renewable Energy Credits
Hi there! I am glad to stop by your site and know more about renewable energy tax credits. Keep it up! This is a good read. I will be looking forward to visit your page again and for your other posts as well. Thank you for sharing your thoughts about renewable energy tax credits
REC A Renewable energy credit is any tax credit offered by a local or federal taxation authority as an incentive for the installation and operation of renewable energy systems such as solar or wind power.
Because there are additional project specific provisions in the tax credit, taxpayers should review all aspects of the credit with their advisors before investing in a renewable energy project.