What is Renewable Energy?

Renewable Energy is electricity that is generated from resources such as solar, wind, geothermal, biomass, and low-impact hydro facilities. Generally, this term refers to sources of power that may either be easily replenished by nature or replenished continuously by the activities of man. Renewable energy produces much less pollution and greenhouse gas emissions than fossil fuels such as natural gas and coal, and in many cases produces no emissions at all.

Relying on dirty power sources translates into air and water pollution, as well as the social costs associated with waste cleanup and health problems. The main benefit of renewable energy is that it stops these problems before they start. Another important benefit of renewable energy is that we can access it right here at home. This benefit allows us to avoid heavily importing to meet our fossil fuel needs, which often creates political and economic dependencies that drive our nation's foreign policy.

What is a REC (Renewable Energy Credit)?

A REC is known as a Renewable Energy Credit. A REC represents the environmental attributes of 1 MWh of power generated from renewable sources like wind, solar, hydro and biomass. Purchasing RECs ensures that more electricity comes from renewable energy sources, which reduces the amount of electricity generated from polluting fossil fuels. RECs may be used to offset CO₂ (carbon) emissions associated with electricity usage and other sources. All RECs included in our Carbon Offsets come from renewable energy facilities. How does it help? In addition to reducing carbon impact, RECs help make a difference by supporting the development and operation of additional renewable energy projects and resources.

What are Carbon Offsets?

A “carbon offset” is an emission reduction credit from an organization’s project that results in less carbon dioxide, or other greenhouse gases, in the atmosphere than would otherwise occur. Carbon offsets are typically measured in tons of CO₂-equivalents (or 'CO₂e').

Wind, solar, geothermal, and biomass energy companies often sell carbon offsets. These companies benefit because the carbon offsets they sell make such projects more economically viable. The buyers of the offsets benefit because they can claim that their purchase resulted in new non-polluting energy, which they can use to offset their own greenhouse gas emissions. The buyers may also save money, as it may be less expensive for them to purchase offsets than to eliminate their own emissions.

Many types of activities can generate carbon offsets. Renewable energy sources, such as wind, solar, hydro, geothermal, and biomass energy can all create carbon offsets by displacing fossil fuels. Other types of offsets available for sale on the market include those resulting from energy efficiency projects, methane capture from landfills or livestock, destruction of potent greenhouse gases such as halocarbons, and carbon sequestration projects (through reforestation, or agriculture) that absorb carbon dioxide from the atmosphere.

What's the difference between a REC and a Carbon Offset?

A carbon offset is similar to a Renewable Energy Credit (REC) in that the end result is a reduced amount of carbon in our atmosphere. The difference is that a carbon offset can be accomplished, not only by purchasing a REC, but also by making a donation toward various projects that either promote green energy or absorb carbon that is already in the air. This includes the planting of trees (which absorb carbon from our air) through reforestation projects, preserving a section of rain forest (or other forest) that would otherwise be destroyed by logging & deforestation, the development of wind turbines for future green energy, and various other green energy & carbon-reducing projects.

How does renewable energy reduce CO₂ pollution?

Renewable energy comes from very low or non-polluting sources, such as wind, solar, hydro, biomass, and geothermal. As clean renewable energy is pumped into our power grid, it replaces dirty energy that would otherwise be generated by carbon-emitting fossil fuels. Purchasing RECs (Renewable Energy Credits) ensures that more electricity comes from renewable energy sources. RECs may be used to offset CO₂ (carbon dioxide) emissions associated with electricity usage and other sources. All RECs included in our Carbon Offsets come from renewable energy facilities. How does this help? In addition to reducing carbon impact, RECs help make a difference by supporting the development and operation of additional renewable energy projects and resources.

Do I still have to buy electricity?

Yes. Renewable energy credits (RECs) are something you buy (either from your utility as "clean energy" or from an independent REC supplier) in addition to your electricity, in order to mitigate or offset the environmental impact of the electricity you use.

Why do some RECs and Carbon Offsets cost more or less than others?
Why are Some Carbon Offsets are Better than Others?

As with any purchase, buyers need to choose their offsets carefully, particularly as the offset market is largely unregulated. For example an important issue to consider when purchasing offsets is 'additionality'. An offset project is considered additional if it isn't business as usual. Typically this means that the project wouldn't have happened without the extra funding from the sale of offsets. Additionality is extremely important, as the entire concept of offsetting - i.e. purchasing greenhouse gas reduction credits from a project elsewhere to neutralize one's own emissions - is based on the premise that those reductions wouldn't have happened otherwise. Only by buying offsets that have met additionality criteria can you be assured that your purchase is resulting in a net benefit for the climate.