In this concise guide, we’ll clarify what Renewable Energy Certificates (RECs) are and outline a step-by-step process to help you understand how to trade them effectively. Whether you’re a business owner or an individual, understanding RECs can enhance your sustainability efforts and potentially provide financial benefits.
What Are Renewable Energy Certificates (RECs)?
Renewable Energy Certificates (RECs) as a solution presents itself as a unique financial opportunity for solar panel, wind turbine, and hydropower plant owners.
These generated renewable energies can be converted and registered as a Renewable Energy Certificate (REC) through internationally recognized registries, which can then be sold to companies seeking to reduce their environmental impact and meet sustainability goals.
Do note that when a company purchases your Renewable Energy Certificate, they’re buying the proof of your clean energy production, not the actual electricity itself. This transaction doesn’t affect your power supply or bills at all — think of it as making extra money from your existing energy system.
Tip!
For those based in Singapore, be sure to check out our detailed guide: Renewable Energy Certificate (REC) in Singapore: A Comprehensive Guide for local-specific insights!
How Much Are Renewable Energy Certificates Worth?
The price of RECs typically varies according to demand and supply. That said, as of mid-2023, selling 1 REC in Singapore for small or medium asset owners will fetch approximately SGD 20.
It’s important to recognize that the REC market is still developing and subject to rapid changes. Fluctuations in regulations, along with shifts in supply and demand, can significantly impact prices.
Additionally, the market lacks full transparency, with most transactions occurring over-the-counter (OTC), which can obscure exact pricing details.The unit of measurement for a singular REC is:
1 MegaWatt per hour (MWh) of renewable energy = 1 Renewable Energy Certificate.
What’s the Difference Between Carbon Credits and Renewable Energy Certificates?
Carbon Credits are used to offset carbon emissions, contributing directly to reducing global greenhouse gases.
Renewable Energy Certificates, on the other hand, support the generation of renewable energy. This promotes the shift of fossil-based energy sources to clean alternatives.
How To Sell Renewable Energy Certificates (RECs): A Quick Guide
- Account Creation: Open a registrant account with a chosen registry for free.
- Asset Registration: Register your renewable energy asset. This involves submitting details like location, capacity, and commissioning date, along with some proof like photos and metering data. Sometimes, a third-party declaration may be needed.
- Renewable Energy Certificate Registration: After verifying your asset, register your RECs by reporting your energy production. This often requires a revenue-grade meter, ensuring precise data.
- Issuance of Renewable Energy Certificates: Once verified, RECs are issued and logged, ready for trading.
- Trading Renewable Energy Certificates: With a trading account, you can sell RECs. Prices fluctuate based on market demand and supply, but they generally remain within a predictable range.
- Redemption and Retirement: Purchased RECs are eventually retired from circulation to claim the environmental benefits.
Costs and Considerations
The process includes various fees, such as registration and meter installation, which might be high for small systems.
However, at GetSolar, these costs are handled by us in our REC purchase program, providing you with cash payouts without the hassle.
FORM: Selling Renewable Energy Certificates with GetSolar
Ready to sell your Renewable Energy Certificates without the hassle? Here at GetSolar, we make the process simple and straightforward.
Fill out the form below, and we’ll handle the rest.
Let's Get Started with Your REC Sales!
Contact Us Today!
