Renewable Energy Credits (RECs)

Renewable Energy Credits (REC's)

REC

What are REC's?

All grid-tied renewable-based electricity generators (i.e solar, wind) produce two distinct products:

  • Physical electricity
  • RECs - Renewable Energy Certificates

Renewable Energy Credits are certificates you earn by simply producing renewable energy from your solar or wind energy system. The REC is proof that the energy source was renewable, and represents the environmental benefits of reduced emissions and pollution. RECs have a monetary value to utility companies because they are used in their portfolio to represent their initiative to lessen their negative environmental impact. In other words, every 1 kW of clean solar or wind energy you produce is 1 kW less "dirty" energy that is required to be made - you are issued monetary rewards because of this. Go you!

How are Renewable Energy Credits (REC's) Tracked?

The renewable generation source feeds the physical electricity onto the electricity grid, where it mixes with electricity from other generation sources. Since electrons from all generation sources are indistinguishable, it is impossible to track the physical electrons from a specific point of generation to a specific point of use. REC meters are used to calculate the Renewable Energy Credit Meter RECrenewable energy being produced. Think of it like your cars odometer, but instead of tracking mileage, the REC meter tracks how many kW of energy you have generated.

As renewable sources such as solar produce electricity, they create one REC for every 1000 watt-hours (or 1 kilowatt-hour) of electricity placed on the grid. If the physical electricity and the associated RECs are sold to separate buyers, the electricity is no longer considered "renewable" or "green." The REC product is what conveys the attributes and benefits of the renewable electricity, not the electricity itself. [Content from EPA.gov Read more> ]

How Renewable Energy Credits Work

Some utilities offer Renewable Energy Credits (REC's) for every kilowatt of energy you produce from your solar energy system. For example, if you install a 9 kW (AC) system it produces about 54 kW/h a day (9 kW x 6 hours estimated sunlight). This is about 19,710 kw/h annually. The utility company pays you an agreed upon rate for each of these kilowatt hours produced a day/ month/ year. Using the example from above, a 9kW solar PV system in New Mexico  with REC of $.025 could net you a payment of $3,942 over an 8 year REC agreement (19,710 kW x 8 years =157,680 kW x $.025 cents).

Renewable Energy Credits Don't Stick Around Forever.


PNM REC Prices

REC price tables are updated weekly on PNM site. Below is the current data as of 1/01/2017

Small Solar -Systems up to 10 kWAC
Total Available Capacity
2000 kWAC
      Capacity Reserved
0 kWAC
      Percent Reserved (%)
0%
      Capacity Remaining
2000 kWAC
      Percent Remaining (%)
100 %
REC price per kWh
.0025¢
Capacity is available from January 1, 2017 to December 31, 2017
Systems larger than 10 kWAC up to 100 kWAC
Total Available Capacity
1000 kWAC
      Capacity Reserved
0 kWAC
      Percent Reserved (%)
0 %
      Capacity Remaining
1000 kWAC
      Percent Remaining (%)
100 %
REC price per kWh
.0025¢
 Capacity is available from January 1, 2017 to December 31, 2017

Central New Mexico Electric Cooperative, Inc REC Prices

Small Solar -Systems up to 10 kWAC
REC price per 1000 kWh
$8.50

 

 Contact the Osceola Energy Solar Professionals Today to Learn More About Renewable Energy Credits