Green-E REC (Renewable Energy Certificate) is essentially an adder that is paid to have renewable energy put onto the grid somewhere in the continental USA. RECs are typically associated with wind-generated renewable power. There are some advantages for procuring RECs:
- It supports existing Green Assets (wind, solar, hydro)
- No need to fully commit to renewable energy. All or designated percentage of annual energy consumption can be made through purchased RECs.
- You can make appropriate environmental claims about a reduction in greenhouse gas “Scope 2” emissions associated with your electricity use.
Some electricity suppliers offer similar Offsite Renewable Energy (ORE) options. The ORE option is similar to the E-REC, but enables the customer to procure renewable credits from an existing local/and or specific source, as opposed to anywhere across the nation. This product provides for:
- Renewable energy
- Location specific generation
- Physical, load-following, energy supply contract.
Due to the location specific requirement, this will come at a premium to standard E-RECs. It should be noted that this option doesn’t necessarily provides “Additionality” to the grid.