Renewable Energy Credits (RECs) — Frequently Asked Questions
What are Renewable Energy Credits?
A Renewable Energy Credit (REC) — also called an Energy Attribute Certificate (EAC) in international markets — represents 1 megawatt-hour (MWh) of electricity generated from a renewable source and delivered to the grid. RECs allow companies to claim that their electricity consumption is matched by verified renewable generation, supporting Scope 2 emissions reporting and RE100 commitments.
The REC market is valued at $200 billion with a 12% annual growth rate, driven by corporate renewable procurement targets and expanding Renewable Portfolio Standard (RPS) mandates.
What types of RECs does NCRB support?
| Sub-type | Description |
|---|---|
| Solar RECs (SRECs) | From solar PV generation — often eligible for state SREC compliance programmes |
| Wind RECs | From onshore and offshore wind generation |
| Hydroelectric RECs | From run-of-river or storage hydro generation |
| Geothermal RECs | From geothermal power plants |
| Bundled RECs | REC bundled with the underlying electricity in a Power Purchase Agreement (PPA) |
| Unbundled RECs | REC sold separately from the electricity — for voluntary and compliance markets |
Which registries are supported?
| Registry | Region |
|---|---|
| APX (NEPOOL GIS) | New England electricity market |
| APX (PJM-GATS) | PJM Interconnection (mid-Atlantic, Midwest) |
| M-RETS | Midwest Renewable Energy Tracking System |
| WREGIS | Western Renewable Energy Generation Information System |
| NAR | North American Renewables Registry (voluntary market) |
| Green-e Energy | National voluntary certification programme |
How are RECs priced?
REC prices vary significantly by source, state programme, and market type:
| REC Type | Typical Price |
|---|---|
| Class I Solar (State RPS compliance) | $50–$400 / MWh |
| Class II Non-Solar (State compliance) | $20–$50 / MWh |
| Voluntary Market RECs | $1–$15 / MWh |
| Bundled RECs (in PPA) | $50–$100 / MWh |
| Unbundled RECs (voluntary) | $1–$50 / MWh |
| Offshore Wind RECs | $30–$60 / MWh |
Solar RECs in states with SREC compliance programmes (Massachusetts, New Jersey, Maryland) command the highest premiums due to legislated demand.
What are the minimum requirements to tokenize a REC?
- Certification by a supported registry (APX, M-RETS, WREGIS, NAR)
- Generation event within the last 12 months
- Green-e Energy Certification for voluntary market claims
- Unique serial number from the issuing registry
- Eligible renewable energy source under the applicable state RPS
- Each token = 1 MWh; symbol
NC-REC-{ID}(ERC-7943 uRWA)
How is quality rated?
REC tokens receive a programmatic quality score (0–100) across six weighted dimensions — the same framework used across all NCRB asset classes (Technical Quality 25%, Additionality 20%, Permanence 20%, Certification Level 15%, Social Impact 12%, Vintage/Condition 8%).
For RECs, Technical Quality reflects the generation source, registry tier, and whether the credit qualifies for state compliance. Vintage/Condition captures generation recency — RECs older than 12 months attract discounts in most compliance markets.
| Band | Score |
|---|---|
| AAA | 85–100 |
| AA | 75–84 |
| A | 65–74 |
| BBB | 50–64 |
| Not Eligible | < 50 |
What corporate frameworks do RECs support?
RECs on NCRB are aligned with:
- RE100 — 100% renewable electricity commitment tracking
- GHG Protocol Scope 2 Guidance — market-based method for electricity emissions
- Green-e Energy Standard — North American voluntary certification
- EAC (Energy Attribute Certificate) — international equivalent of RECs
How do RECs differ from carbon credits?
| RECs | Carbon Credits | |
|---|---|---|
| What they represent | 1 MWh of renewable electricity | 1 tonne of CO₂e reduced or removed |
| Primary use | Scope 2 electricity claims (RE100, GHG Protocol) | Scope 1/3 offsets, net-zero claims |
| Retirement | Prevents double-counting of renewable attribute | Prevents re-use of the offset |
| Vintage | Typically 12-month validity window | Typically 5-year maximum |
How is token revenue distributed?
| Recipient | Share |
|---|---|
| Asset Owner | 70% |
| Registry Partner | 10% |
| NCRB Platform | 10% |
| Third Party (aggregator / referrer) | 10% |
What fees apply?
- Trading fee: 2.5% per transaction
- AUM fee: 1.5% annually
- BaaS licensing: $50,000–$200,000 for registry partners