If you own or are considering an onsite renewable generation project such as onsite solar, you may be able to sell or retire the associated RECs. In compliance markets, like those that cover much of the Northeast, RECs have significant positive value that can be sold to generate revenue and offset project costs or avoid the need to purchase additional RECs to meet carbon reduction goals. CES provides sustainability consulting services related to onsite generation feasibility studies, incorporating our knowledge of forward energy markets and regulations to develop a detailed 20-year pro forma, a commonly oversimplified component of renewable energy project financial analysis. We help clients understand the many different factors that influence REC pricing, including changing compliance regulations, and asses how the sale of RECs could maximize the value of onsite renewable or efficient generation systems.
Renewable portfolio standards have endured for nearly 40 years because they have proven to be an efficient, cost-effective, market-based strategy to meet renewable electricity goals. These policies do have a direct impact on consumer electricity prices, but a well-designed RPS includes measures to mitigate cost increases and ensure costs are borne fairly by all ratepayers. Increasing amounts of renewable electricity supplied to the grid, driven by RPS, are a critical part of climate change mitigation. Additionally, they create a more secure and diverse energy supply that relies on domestic resources, reduce the volatility of electricity prices, and stimulate economic growth through job creation and increased tax revenue. The compliance REC market allows onsite renewable or efficient generation systems to generate revenue or offset costs through the sale of these high-value RECs. Work with your Energy Services Advisor to understand exactly how changing RPS targets are projected to impact your electricity supply rate and any opportunities to participate in the compliance market to save money and meet your own carbon reduction goals.