Easily Understanding How Renewable Energy Credits Work

Homes and businesses alike are making a real effort now to work towards a truly sustainable environment by being energy conscious A greater focus on the types and amounts of energy used, in addition to decreasing solid waste with repurposing and recycling, is having a tremendous positive impact on our environment. With much work yet to be done, the ability to track renewable energy helps developers and consumers make intentional use of their energy. A vital part of this process is understanding how renewable energy credits work. When you have an understanding of how green certificates work, you will have the ability to conserve or to use renewable energy with a plan.

• What are Renewable Energy Credits (RECs)? Also know as renewable energy certificates or greentags, they are actually a commodity that represents a specific cost/benefit amount as opposed to traditional ways energy is used for electricity production like coal or natural gas. RECs serve a second purpose, as well, by encouraging the growth and development of alternative energy facilities such as wind farms.

• Where Do RECs Come From? They are generated by the renewable energy companies as electricity is produced. The amount of energy, or RECs, you purchase equals the amount placed on the power grid by the facility. Energy generated at wind farms or other renewable energy companies, natural resources aren't being consumed.

• What Do They Do? Renewable energy certificates represent the amount of energy you intend to use and also indicate how much energy the facility needs to put on the power grid for you. You will receive the same energy you're used to receiving but at a lower cost and with added value-added services and benefits to choose from.

• What is the Purpose of RECs? RECs serve a dual-purpose by providing consumers with affordable, environmentally-friendly energy while sustaining natural resources. Rather than use up natural gas or burn coal, electricity produced by wind farms and other alternatives energy-producing sources is used to place the exact amount of energy needed on the power grid. This serves to further conserve energy by ensuring that it's placed onto the grid only to the extent that it will be used.

A basic understanding of how renewable energy credits work provides you with the knowledge needed to continuing fine-tuning your environmentally-friendly practices, both in the home and in your business. Using RECs is a simple process and help is available to get you started. As your understanding grows about how green certificates work for the benefit of your business, your home and the environment, you will have the knowledge necessary to have a definite impact on your carbon footprint.


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Kris Hoffman did his research on renewable energy credits to see how they work and if he could use them for his business. Get the information you need on wind power, renewable energy credits and more from Renewable Choice Energy. Visit http://www.renewablechoice.com/business-sustainability-renewable-energy-wind-power-carbon-offsets.html for more information.


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