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Distributed Generation and Renewable Energy Credits (RECs)

Renewable Energy Credits (RECs) are among several factors that may affect the economics of solar and other renewable DG facilities, and as such may play an important role in driving the deployment of renewable DG in California and achieving the goals of California Renewables Portfolio (RPS).  A REC confers to its holder a claim on the renewable attributes of one unit of energy generated from a renewable resource.  A REC consists of the renewable and environmental attributes associated with the production of electricity from a renewable source.  RECs are "created" by a renewable generator simultaneous to the production of electricity and can subsequently be sold separately from the underlying energy.  Information on CPUC's REC policies can be found in the following useful sources:

  1. RPS program website on RECs
  2. The Commission has issued decision on information on the ownership of RECs from ratepayer funded rebate programs for distributed generation:
    • In D.05-05-011 states that the owners of renewable DG facilities own the RECs associated with the generation of electricity from those facilities.
    • In D.07-01-018 state that the owners of renewable DG facilities own the RECs associated with the generation of electricity from those facilities funded under the California Solar Initiative.
    • If tradable RECs are eligible for the RPs program, then some DG system owners may elect to sell their RECs into the compliance market.  If interested, DG system owners would need to qualify in the Western Renewable Energy Generation Information Systems (WREGIS) for tracking RPS-eligible RECs.
  

Last Modified: 7/30/2010


 
 
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