How do renewable energy credits work?
February 20, 2023

Renewable energy credits (RECs) are a great way to support renewable energy and reduce the environmental impact of energy production. There are many ways to support renewable energy and buying RECs is one. The benefits of purchasing RECs are numerous, it is a great way to reduce your environmental impact and support the shift to renewable energy sources. But what is a REC, how does it work and what exactly are the benefits?  

The Basics of RECs

RECs are a market-based tool which certifies that 1 MWh of electricity delivered to the grid is from a renewable source, so its environmental impact can be quantified and purchased. Once that energy is delivered to the grid, RECs can be sold as a commodity on the open market and are used to track renewable energy from its source (solar, wind, biomass, or hydro) all the way to someone who purchases green power.  

For instance, if a solar facility produces 10 MWh of electricity, it is given the option to either keep or sell its associated 10 RECs in the market. In the event the solar facility decides to market its RECs, residential and commercial customers may purchase them through initiatives such as Entergy Green Select to supplement their energy consumption. The RECs verify that the megawatt-hours came from a renewable source and cannot be claimed by another person or company. Interested? Enroll in Green Select today.

Producing and Utilizing RECs

A single REC is produced when one megawatt-hour (MWh) of electricity is sent to the grid from a renewable energy source. Those RECs are then available to be sold to individuals and companies.  

All RECs are uniquely identified and feature data like the generation date, origin location, and type of renewable energy source it came from, which allows companies who buy renewable power to demonstrate how much of their power use comes from renewable sources.

Intro to RECs

The grid can accept electricity from many different sources, including wind, solar, natural gas, hydroelectric, and nuclear power. With all these various power sources, how can one tell where their energy is coming from? Purchasing RECs with your electricity supply is one of the best ways to trace where your power comes from back to a renewable energy source.

Rewards of RECs

With RECs monitored by entities such as the North American Renewables Registry, it is easy to observe the impact of renewable energy on the grid and how it decreases our carbon footprint. It is also a great way to provide customers with proof of a renewable energy use and demand source, this makes RECs an easy and affordable way to trace the origin of the power you get from the grid without the expense of installing solar panels or another renewable technology to supply your home or business. Investing in RECs allows you to contribute to renewable energy sources, while also reducing the environmental impact of your energy usage. You can buy RECs through Entergy Green Select today.    

Exploring Entergy's Commitment to RECs

We are dedicated to giving our customers who are striving for sustainability the chance to use renewable energy options. Entergy Green Select is the renewable energy option that Entergy Texas customers can select. The program is Green-e certified, a certification developed by the Center for Resource Solutions which verifies the authenticity of RECs through each step in the process so that customers can be sure of their purchase. With Green-e certification, customers can be certain that the renewable energy supplied by Entergy Texas is sourced from facilities that meet the Green-e requirements and is exclusively delivered to the REC purchaser, meaning it isn't counted multiple times.

Entergy is committed to providing our customers with renewable energy that can be made available quickly, easily, and affordably. We are constantly working for solutions that keep our customers happy and our world healthy.