When you make the switch to a renewable energy product,
it can sometimes be difficult to see what your dollars are working to support.
As a cooperative, transparency is at the heart of everything The Energy Co-op does.
We believe in sharing the complete picture of the clean energy market, plainly explaining how Renewable Energy Credits (RECs) work alongside their real-world value, so we can navigate the clean energy transition alongside our members.
Currently, in Pennsylvania, unless a household or business can install their own distributed energy resources (DERs), like rooftop solar, choosing a renewable electricity product from a third-party supplier is one of the primary ways consumers can participate in the clean energy transition.
To do this, the industry relies primarily on RECs.
Every time a renewable facility (like a wind farm or solar facility) produces one megawatt-hour of clean electricity, it generates one REC. From there, RECs are sold on the global REC market, and The Energy Co-op purchases them on behalf of our members.
Although the transaction itself is straightforward, the path a REC takes after it is generated varies, and it affects how closely a purchase is connected to the renewable energy it represents.
So what do RECs actually do?
While individual REC purchases don’t guarantee true project additionality—meaning they won’t immediately lead to the construction of a renewable energy facility or wipe out emissions—they carry immense value. RECs provide a transparent, verifiable mechanism for consumers to financially support renewable electricity generation while helping accelerate the broader transition to a cleaner grid. The projected revenue from the sale of RECs is a key factor developers use to secure financing for new facilities. Without that revenue and demand, most modern renewable projects would struggle to get built at all.
Retiring a REC permanently removes it from circulation, ensuring its environmental attributes are claimed by only one purchaser. However, some suppliers treat RECs as financial assets, buying and selling them on the market before they are eventually retired. While that is a common industry practice, it can create distance between your energy dollars and the renewable energy you are trying to support.
The Energy Co-op takes a more transparent approach: we purchase both national and local Pennsylvania RECs for the sole purpose of supporting our members’ clean energy usage and the continued growth of renewable energy demand. These RECs are immediately removed from circulation, meaning they can never be sold, traded, or claimed again. Once a REC is retired by The Energy Co-op, it provides a permanent record of renewable energy support, one that cannot be reused or counted twice.
In this way, the RECs we purchase on behalf of our members help bridge the gap between renewable energy generation and future investment. While their impact is indirect, sustained demand for RECs strengthens the market incentive for expanding clean energy over time.
By purchasing RECs generated within the last two calendar years and removing them from circulation immediately, The Energy Co-op maintains a direct, transparent link between your energy dollars and active renewable generation.
Unlike suppliers that trade RECs as financial assets, we buy RECs once and remove them permanently from the market. This ensures the clean energy they represent is claimed exclusively on behalf of our members, directing their investment toward advancing the clean energy future they have chosen to support.
This intentional approach keeps your investment focused on supporting regional and national clean energy producers and building a more accountable renewable market.
Every time a renewable facility (like a wind farm or solar facility) produces one megawatt-hour of clean electricity, it generates one REC. From there, RECs are sold on the global REC market, and The Energy Co-op purchases them on behalf of our members.
Although the transaction itself is straightforward, the path a REC takes after it is generated varies, and it affects how closely a purchase is connected to the renewable energy it represents.
So what do RECs actually do?
While individual REC purchases don’t guarantee true project additionality—meaning they won’t immediately lead to the construction of a renewable energy facility or wipe out emissions—they carry immense value. RECs provide a transparent, verifiable mechanism for consumers to financially support renewable electricity generation while helping accelerate the broader transition to a cleaner grid. The projected revenue from the sale of RECs is a key factor developers use to secure financing for new facilities. Without that revenue and demand, most modern renewable projects would struggle to get built at all.
Retiring a REC permanently removes it from circulation, ensuring its environmental attributes are claimed by only one purchaser. However, some suppliers treat RECs as financial assets, buying and selling them on the market before they are eventually retired. While that is a common industry practice, it can create distance between your energy dollars and the renewable energy you are trying to support.
The Energy Co-op takes a more transparent approach: we purchase both national and local Pennsylvania RECs for the sole purpose of supporting our members’ clean energy usage and the continued growth of renewable energy demand. These RECs are immediately removed from circulation, meaning they can never be sold, traded, or claimed again. Once a REC is retired by The Energy Co-op, it provides a permanent record of renewable energy support, one that cannot be reused or counted twice.
In this way, the RECs we purchase on behalf of our members help bridge the gap between renewable energy generation and future investment. While their impact is indirect, sustained demand for RECs strengthens the market incentive for expanding clean energy over time.
By purchasing RECs generated within the last two calendar years and removing them from circulation immediately, The Energy Co-op maintains a direct, transparent link between your energy dollars and active renewable generation.
Unlike suppliers that trade RECs as financial assets, we buy RECs once and remove them permanently from the market. This ensures the clean energy they represent is claimed exclusively on behalf of our members, directing their investment toward advancing the clean energy future they have chosen to support.
This intentional approach keeps your investment focused on supporting regional and national clean energy producers and building a more accountable renewable market.
To continue leading the energy evolution, The Energy Co-op must continually adapt. As we work to expand our programs and offerings to deepen our impact in a changing world, we believe RECs remain an invaluable tool to reduce reliance on fossil fuels and drive the continued growth of renewable energy in our region and beyond.
By choosing renewable energy with The Energy Co-op, you help create steady demand for electricity generated from wind and solar within our regional and national energy markets, gradually shifting electricity procurement away from fossil fuels and toward a cleaner energy mix over time.
To continue leading the energy evolution, The Energy Co-op must continually adapt. As we work to expand our programs and offerings to deepen our impact in a changing world, we believe RECs remain an invaluable tool to reduce reliance on fossil fuels and drive the continued growth of renewable energy in our region and beyond.
By choosing renewable energy with The Energy Co-op, you help create steady demand for electricity generated from wind and solar within our regional and national energy markets, gradually shifting electricity procurement away from fossil fuels and toward a cleaner energy mix over time.
Office Hours:
Monday – Friday: 9:00am – 5:00pm (EST)
(c) 2023 The Energy Co-op All Rights Reserved | Privacy Policy
Site Design by Dynamic Wave Consulting
