What is the purpose of Renewable Energy Credits (RECs) in sustainability practice?

• A. They directly supply renewable energy to buildings
• B. They represent environmental benefits of renewable energy and can be used to meet energy goals or compliance
• C. They are required to be used only for solar energy
• D. They are nothing to do with energy policy

Answer: (B)

Renewable Energy Credits (RECs) exist to quantify and trade the environmental benefits of renewable energy. Each REC represents the environmental attributes of one megawatt-hour of renewable electricity that was generated and fed into the grid. Because the environmental value can be separated from the actual electrons, RECs can be bought and sold independently from the physical power.

This allows organizations to meet sustainability goals or regulatory requirements by claiming the use of renewable energy or by supporting renewable generation, even if the building’s actual electricity comes from the grid. RECs are not limited to solar energy; they cover a range of renewable sources. They also enable policy and market mechanisms by retiring the certificates to prevent double counting, reinforcing the connection between policy objectives and market incentives.