Selling Renewable energy credits

Selling renewable energy credits is a new and intriguing market. Here is some facts about selling renewable energy credits and a basic insight of the market.

Renewable Energy Certificates (Recs) are oftentimes referred to as Green Tags, Renewable Energy Credits, and/or Tradable Renewable Certificates (Trcs). Recs relate the environmental and economic value of electricity produced from clean, renewable, emission-free energy resources that will never be depleted and are safe for our environment. A Rec is not actual energy, just the right to say that you have offset the output of dirty power with clean power.

Alternative Energy

Producers of green power should think selling renewable energy credits as well as the power itself, which will growth their profits. Other parties can buy Recs if they need to satisfy regulatory requirements or improve their corporate appearance. When Recs are sold, the assosication buying the Recs obtains the right to claim environmental advantage.

Selling Renewable energy credits

Selling renewable energy credits allows energy users over the country to withhold alternative energy generation. Recs lead to the growth of the renewable power sector, and with buyer withhold will continue to help make alternative power even more cost competitive.

In areas which have a Rec program, an alternative energy victualer (such as a wind farm) is credited with one Rec for every 1,000 kWh or one Mwh of electricity it creates. The median residential customer uses about 800 kWh per month. A certifying assosication gives each Rec an exclusive identification number to make sure it isn't sold twice. The green energy is then fed into the electrical grid (by law), and the complementary Rec can then be sold on the open market.

Several certification and accounting associations endeavor to ensure that Recs are legally sold and correctly tracked. The atmosphere Neutral Network, Green-e, and the Environmental Resources Trust's EcoPower program warrant Recs. If you are curious in selling renewable energy credits, start with your local electric enterprise or one of these organizations.

There are two main markets for selling renewable energy credits in the United States - yielding markets and voluntary markets. A policy called the Renewable briefcase proper (Rps) is responsible for creating the yielding markets. Renewable briefcase proper requires electric fellowships to contribute a predetermined percent of their electricity from renewable sources by a definite year.

For example, California electric fellowships must contribute 20% energy from renewable sources by 2010. electric utilities in these areas with Rpss must demonstrate yielding with their requirements by buying Recs. In the California sample, the electric fellowships would need to hold Recs equivalent to 20% of their sales.

Want to help fellowships and property owners go green? Sell your Recs on the voluntary market. Voluntary markets allow customers to buy renewable power, ordinarily out of a desire to go green. Most industrial and domestic purchases of Recs are voluntary. Alternative power providers can sell their Recs to voluntary buyers, normally at a lower price than yielding shop Recs.

Detractors indicate a flaw with this system. It is argued that it does not necessarily replace dirty energy. Since some alternate energy resources, most notably wind resources, are irregular and unpredictable, their output does not replace an equivalent number of other sources, per kW of capacity. However, they do replace on a per kWh basis, electricity from combustion sources, thus reducing greenhouse gases and undesirable byproducts.

Selling Renewable energy credits