{"id":1829,"date":"2016-10-27T13:27:23","date_gmt":"2016-10-27T18:27:23","guid":{"rendered":"https:\/\/www.citizensutilityboard.org\/?page_id=1829"},"modified":"2025-07-02T19:05:30","modified_gmt":"2025-07-03T00:05:30","slug":"renewable-energy-certificates-recs","status":"publish","type":"page","link":"https:\/\/www.citizensutilityboard.org\/renewable-energy-certificates-recs\/","title":{"rendered":"CUB Guide to Renewable Energy Plans"},"content":{"rendered":"<div class=\"wpb-content-wrapper\"><p>[vc_row][vc_column][vc_custom_heading text=&#8221;CUB&#8217;s Guide to Renewable Energy Plans&#8221; font_container=&#8221;tag:h2|font_size:24|text_align:left&#8221; use_theme_fonts=&#8221;yes&#8221;][\/vc_column][\/vc_row][vc_row][vc_column width=&#8221;5\/6&#8243;][vc_column_text]<strong><ul class=\"icon \"><li><i class=\"fa fa-caret-right\"><\/i> <a href=\"https:\/\/citizensutilityboard.org\/wp-content\/uploads\/2018\/08\/GreenPlans.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">PDF version of this fact sheet<\/a><\/li><\/ul><\/strong>[\/vc_column_text][\/vc_column][vc_column width=&#8221;1\/6&#8243;][\/vc_column][\/vc_row][vc_row][vc_column width=&#8221;5\/6&#8243;][\/vc_column][vc_column width=&#8221;1\/6&#8243;][\/vc_column][\/vc_row][vc_row][vc_column][vc_custom_heading text=&#8221;Are you considering a &#8220;green plan&#8220;?&#8221; font_container=&#8221;tag:h2|font_size:24|text_align:left&#8221; use_theme_fonts=&#8221;yes&#8221;][\/vc_column][\/vc_row][vc_row][vc_column width=&#8221;5\/6&#8243;][vc_column_text]We at CUB hear a lot about \u201cgreen\u201d or \u201cclean power\u201d plans\u2014electricity offers connected to renewable energy and advertised by alternative suppliers. Signing up for such a plan can be\u00a0 a legitimate choice in Illinois\u2019 electricity market, but it is not your only \u201cgreen\u201d choice and does not mean your home will be directly powered by wind or solar energy. To better understand these plans, it is helpful to learn about how the power grid works and what \u201cRenewable Energy Certificates,\u201d or RECs, are.[\/vc_column_text][vc_column_text css=&#8221;.vc_custom_1477595133366{padding-top: 35px !important;padding-right: 35px !important;padding-bottom: 35px !important;padding-left: 35px !important;background-color: #cccccc !important;}&#8221;]<strong>What is renewable energy?<\/strong><\/p>\n<p>According to the Environmental Protection Agency (EPA), &#8220;renewable electricity is produced from resources that do not deplete when their energy is harnessed,&#8221; like sunlight, wind, waves, water flow, and geothermal\u00a0energy.[\/vc_column_text][\/vc_column][vc_column width=&#8221;1\/6&#8243;][\/vc_column][\/vc_row][vc_row][vc_column][vc_separator color=&#8221;custom&#8221; css=&#8221;.vc_custom_1475699797969{background-color: #0f4b91 !important;}&#8221;][\/vc_column][\/vc_row][vc_row][vc_column][vc_custom_heading text=&#8221;Where does my electricity come from?&#8221; font_container=&#8221;tag:h2|font_size:24|text_align:left&#8221; use_theme_fonts=&#8221;yes&#8221;][\/vc_column][\/vc_row][vc_row][vc_column width=&#8221;5\/6&#8243;][vc_column_text]Whether you\u2019re on your utility\u2019s standard rate, or with an alternative electricity supplier\u2019s green plan, there\u2019s no easy way to determine where the electricity you\u2019re consuming is coming from.\u00a0 Our electrical system is constantly being fed power by thousands of sources. When you turn on your TV, charge your cellphone, or crank up the A\/C, chances are good that the electrons entering your home\u00a0 are coming from a combination of nuclear, coal, wind, natural gas, and other types of generators.[\/vc_column_text][\/vc_column][vc_column width=&#8221;1\/6&#8243;][\/vc_column][\/vc_row][vc_row][vc_column][vc_separator color=&#8221;custom&#8221; align=&#8221;align_left&#8221; css=&#8221;.vc_custom_1475699807900{background-color: #0f4b91 !important;}&#8221;][\/vc_column][\/vc_row][vc_row][vc_column][vc_custom_heading text=&#8221;What are RECs?&#8221; font_container=&#8221;tag:h2|font_size:24|text_align:left&#8221; use_theme_fonts=&#8221;yes&#8221;][\/vc_column][\/vc_row][vc_row][vc_column width=&#8221;5\/6&#8243;][vc_column_text]<\/p>\n<p class=\"m_3843340166793512743BasicParagraph\">When you sign up for an alternative supplier\u2019s green plan,\u00a0 the company you chose will take some of your money to buy Renewable Energy Certificates, or RECs. Also known as \u201crenewable energy credits,\u201d RECs were created to measure the positive environmental qualities of that renewable energy and give developers an incentive to build more renewable energy. For one megawatt-hour (1,000 kilowatt-hours) of electricity produced by a renewable energy generator, like a wind turbine or a solar panel, one REC is also created.<\/p>\n<p class=\"m_3843340166793512743BasicParagraph\">RECs are then traded in special energy markets and eventually bought by such parties as utilities that need to meet state renewable energy requirements, alternative suppliers that offer green plans, and individuals looking for ways to lessen their environmental impact.<\/p>\n<p>[\/vc_column_text][\/vc_column][vc_column width=&#8221;1\/6&#8243;][\/vc_column][\/vc_row][vc_row][vc_column][vc_separator color=&#8221;custom&#8221; align=&#8221;align_left&#8221; css=&#8221;.vc_custom_1475699807900{background-color: #0f4b91 !important;}&#8221;][\/vc_column][\/vc_row][vc_row][vc_column][vc_custom_heading text=&#8221;How do RECs work?&#8221; font_container=&#8221;tag:h2|font_size:24|text_align:left&#8221; use_theme_fonts=&#8221;yes&#8221;][\/vc_column][\/vc_row][vc_row][vc_column width=&#8221;5\/6&#8243;][vc_column_text]<\/p>\n<p class=\"m_3843340166793512743BasicParagraph\">Beginning in the late 1990s, a system for tracking clean energy became necessary, as consumers became more interested in renewable energy and a number of states (including Illinois) adopted Renewable Portfolio Standards requiring utilities to acquire a percentage of their energy from renewable resources. Here\u2019s an example of how RECs work:\u00a0When a wind farm adds 1 megawatt-hour (MWh) of electricity to the power grid, a buyer can purchase both the electricity generated and a REC representing the environmental benefits of that clean electricity. The buyer can also choose to purchase the electricity only, and the REC can be sold to another buyer at market value by the wind farm.<\/p>\n<p class=\"m_3843340166793512743BasicParagraph\">In short, someone who purchases and claims a REC is ensuring that\u2014even if the power they consume isn\u2019t coming from a renewable resource\u2014renewable energy is being added somewhere on the electric grid. Once a REC is bought, it is retired to prevent someone else from buying it.<\/p>\n<p>[\/vc_column_text][\/vc_column][vc_column width=&#8221;1\/6&#8243;][\/vc_column][\/vc_row][vc_row][vc_column][vc_separator color=&#8221;custom&#8221; align=&#8221;align_left&#8221; css=&#8221;.vc_custom_1475699807900{background-color: #0f4b91 !important;}&#8221;][\/vc_column][\/vc_row][vc_row][vc_column][vc_custom_heading text=&#8221;How much does a REC cost?&#8221; font_container=&#8221;tag:h2|font_size:24|text_align:left&#8221; use_theme_fonts=&#8221;yes&#8221;][\/vc_column][\/vc_row][vc_row][vc_column width=&#8221;5\/6&#8243;][vc_column_text]Just like the price of soy beans or the stock value of a corporation, REC prices go up and down. The value of a REC depends on a number of factors, including the technology used to generate the electricity (solar, wind, etc.), the vintage (the year the power was generated), the region where the power was generated, and the amount purchased.[\/vc_column_text][\/vc_column][vc_column width=&#8221;1\/6&#8243;][\/vc_column][\/vc_row][vc_row][vc_column][vc_separator color=&#8221;custom&#8221; align=&#8221;align_left&#8221; css=&#8221;.vc_custom_1475699807900{background-color: #0f4b91 !important;}&#8221;][\/vc_column][\/vc_row][vc_row][vc_column][vc_custom_heading text=&#8221;How do I know my money is actually funding renewable energy?&#8221; font_container=&#8221;tag:h2|font_size:24|text_align:left&#8221; use_theme_fonts=&#8221;yes&#8221;][\/vc_column][\/vc_row][vc_row][vc_column width=&#8221;5\/6&#8243;][vc_column_text]<\/p>\n<p class=\"m_3843340166793512743BasicParagraph\">Each REC is uniquely numbered, and there are seven major regional tracking systems set up to create, manage and retire RECs. The tracking systems allow states and other entities to demonstrate that they\u2019ve complied with renewable energy standards and environmental policies under which they operate. The PJM-Generation Attribute Tracking System (PJM-GATS) and Midwest Renewable Energy Tracking System (M-RETS) manage and track RECs in Illinois.<\/p>\n<p class=\"m_3843340166793512743BasicParagraph\">If you\u2019re thinking about signing up for an alternative supplier\u2019s green plan, find out if they\u2019re \u201cGreen-e\u201d certified.\u00a0 Green-e is a global standard for clean energy certification and a good place to check if you want to be sure of an offer\u2019s credentials:\u00a0\u00a0<strong><a href=\"https:\/\/www.green-e.org\/\" target=\"_blank\" rel=\"noopener noreferrer\">www.Green-e.org<\/a>.<\/strong><\/p>\n<p>[\/vc_column_text][vc_custom_heading text=&#8221;How do the alternative suppliers&#8217; &#8220;green options&#8220; work?&#8221; font_container=&#8221;tag:h2|font_size:24|text_align:left&#8221; use_theme_fonts=&#8221;yes&#8221;][vc_column_text]<\/p>\n<p style=\"font-weight: 400;\">Signing up for one of these plans does not mean that the electricity supplier will send energy produced by a solar or wind farm directly to your home. Rather, the supplier is buying RECs on your behalf to offset up to 100 percent of the energy that you use.<\/p>\n<p style=\"font-weight: 400;\">For example, if a person enrolls in an alternative supplier\u2019s \u201c50 percent green\u201d plan and uses 1,000 kilowatt-hours (kWh), or one MWh, of electricity in a month, that customer would claim RECs for half of his or her usage, 500 kWh. If that same customer were on a \u201c100 percent green\u201d plan, that person would be claiming RECs that offset his or her entire electricity demand for that month.<\/p>\n<p style=\"font-weight: 400;\">Consumers almost always pay a premium for these plans\u2014but the quality of the RECs vary. Shop carefully. It is possible that the higher price a customer is being charged is only partially due to the additional cost of purchasing the RECs, while the rest is a markup designed to increase the supplier\u2019s profit margin. <strong>Be advised:<\/strong> CUB has seen prices for green plans that are significantly higher than the utility\u2019s price (double the utility rate or more).\u00a0See alternative supplier prices in\u00a0<a href=\"https:\/\/citizensutilityboard.org\/wp-content\/uploads\/2018\/05\/ComEdElectricChoiceLong.pdf\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>ComEd<\/strong><\/a>\u00a0and\u00a0<a href=\"https:\/\/www.citizensutilityboard.org\/wp-content\/uploads\/2019\/07\/AmerenElectricChoiceLong.pdf\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>Ameren<\/strong><\/a>\u00a0territories.<\/p>\n<p style=\"font-weight: 400;\">If you\u2019re interested in signing up for a green plan, CUB recommends verifying the quality of the RECs. Find out from the supplier where the RECs are from, how old they are, and whether they\u2019re Green-e certified. (<a href=\"https:\/\/www.green-e.org\/\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>Green-e<\/strong><\/a> is a consumer protection program from the California nonprofit Center for Resource Solutions. It is designed to help people buy renewable energy from reputable, verifiable sources.)<\/p>\n<p style=\"font-weight: 400;\">You can also buy RECs independently. Visit <a href=\"https:\/\/www.green-e.org\/\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>Green-e.org<\/strong><\/a>, and\u00a0 be sure to read the fine print before signing up for any offer.<\/p>\n<p>[\/vc_column_text][vc_custom_heading text=&#8221;Do ComEd and Ameren use RECs?&#8221; font_container=&#8221;tag:h2|font_size:24|text_align:left&#8221; use_theme_fonts=&#8221;yes&#8221;][vc_column_text]<\/p>\n<p class=\"m_3843340166793512743BasicParagraph\">Yes. The state\u2019s Renewable Portfolio Standard requires the Illinois Power Agency (IPA), which buys power on behalf of ComEd and Ameren customers, to obtain at least 25 percent of their customers\u2019 power demand from renewable resources by 2025. To help Illinois meet this goal, CUB helped pass a law called the Future Energy Jobs Act, under which the IPA will buy RECs from solar and wind projects in the state.<\/p>\n<p>[\/vc_column_text][vc_custom_heading text=&#8221;Does CUB support buying RECs?&#8221; font_container=&#8221;tag:h2|font_size:24|text_align:left&#8221; use_theme_fonts=&#8221;yes&#8221;][vc_column_text]CUB supports a consumer\u2019s right to buy RECs to offset his or her electricity demand and help fund renewable energy projects. However, RECs shouldn\u2019t distract from even better ways to help the environment:<\/p>\n<ol>\n<li>Reduce your electricity consumption through energy efficiency.<br \/>\n<a href=\"https:\/\/citizensutilityboard.org\/ee_amerenincentives\/\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>Ameren<\/strong><\/a>\u00a0and\u00a0<a href=\"https:\/\/citizensutilityboard.org\/energy-efficiency-programs-comed-customers\/\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>ComEd<\/strong><\/a>\u00a0offer discounts and rebates for a wide range of efficiency upgrades.<\/li>\n<\/ol>\n<ol start=\"2\">\n<li>Move your electricity demand to off-peak hours.<br \/>\nAdjusting the bulk of your electricity usage helps reduce the need for dirty power plants, and it&#8217;s good for your pocketbook. Check out Ameren&#8217;s\u00a0<a href=\"https:\/\/www.powersmartpricing.org\/\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>PowerSmart Pricin<\/strong><\/a>g and\u00a0<a href=\"https:\/\/peaktimerewards.com\/\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>Peak Time Rebates<\/strong><\/a>\u00a0programs and ComEd&#8217;s\u00a0<a href=\"https:\/\/hourlypricing.comed.com\/\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>Hourly Pricing<\/strong><\/a>\u00a0and\u00a0<strong><a href=\"https:\/\/www.comed.com\/WaysToSave\/ForYourHome\/Pages\/PeakTimeSavings.aspx\" target=\"_blank\" rel=\"noopener noreferrer\">Peak Time Savings<\/a><\/strong>\u00a0programs.<\/li>\n<\/ol>\n<ol start=\"3\">\n<li>Install solar panels, or, if you can\u2019t install panels on your own home, learn about\u00a0<a href=\"https:\/\/citizensutilityboard.org\/community-solar-illinois\/\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>community solar<\/strong><\/a>.<\/li>\n<\/ol>\n<p>More information on these programs is available at\u00a0<a href=\"https:\/\/citizensutilityboard.org\/\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>www.CitizensUtilityBoard.org<\/strong><\/a>.[\/vc_column_text][\/vc_column][vc_column width=&#8221;1\/6&#8243;][\/vc_column][\/vc_row]<\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>[vc_row][vc_column][vc_custom_heading text=&#8221;CUB&#8217;s Guide to Renewable Energy Plans&#8221; font_container=&#8221;tag:h2|font_size:24|text_align:left&#8221; use_theme_fonts=&#8221;yes&#8221;][\/vc_column][\/vc_row][vc_row][vc_column width=&#8221;5\/6&#8243;][vc_column_text][\/vc_column_text][\/vc_column][vc_column width=&#8221;1\/6&#8243;][\/vc_column][\/vc_row][vc_row][vc_column width=&#8221;5\/6&#8243;][\/vc_column][vc_column width=&#8221;1\/6&#8243;][\/vc_column][\/vc_row][vc_row][vc_column][vc_custom_heading text=&#8221;Are you considering a &#8220;green plan&#8220;?&#8221; font_container=&#8221;tag:h2|font_size:24|text_align:left&#8221; use_theme_fonts=&#8221;yes&#8221;][\/vc_column][\/vc_row][vc_row][vc_column width=&#8221;5\/6&#8243;][vc_column_text]We at CUB hear a lot about \u201cgreen\u201d or \u201cclean power\u201d plans\u2014electricity offers connected to renewable energy and advertised by alternative suppliers. Signing up for such a plan can be\u00a0 a legitimate choice in Illinois\u2019 electricity market, but it is not your only \u201cgreen\u201d choice and does not mean your home will be directly powered by wind or solar energy. To better understand these plans, it is helpful to learn about how the power grid works and what \u201cRenewable Energy Certificates,\u201d or RECs, are.[\/vc_column_text][vc_column_text css=&#8221;.vc_custom_1477595133366{padding-top: 35px !important;padding-right: 35px !important;padding-bottom: 35px !important;padding-left: 35px !important;background-color: #cccccc !important;}&#8221;]What is renewable energy? According to the Environmental Protection Agency (EPA), &#8220;renewable electricity is produced from resources that do not deplete when their energy is harnessed,&#8221; like sunlight, wind, waves, water flow, and geothermal\u00a0energy.[\/vc_column_text][\/vc_column][vc_column width=&#8221;1\/6&#8243;][\/vc_column][\/vc_row][vc_row][vc_column][vc_separator color=&#8221;custom&#8221; css=&#8221;.vc_custom_1475699797969{background-color: #0f4b91 !important;}&#8221;][\/vc_column][\/vc_row][vc_row][vc_column][vc_custom_heading text=&#8221;Where does my electricity come from?&#8221; font_container=&#8221;tag:h2|font_size:24|text_align:left&#8221; use_theme_fonts=&#8221;yes&#8221;][\/vc_column][\/vc_row][vc_row][vc_column width=&#8221;5\/6&#8243;][vc_column_text]Whether you\u2019re on your utility\u2019s standard rate, or with an alternative electricity supplier\u2019s green plan, there\u2019s no easy way to determine where the electricity you\u2019re consuming is coming from.\u00a0 Our electrical system is constantly being fed power by thousands of sources. When you turn on your TV, charge your cellphone, or crank up the A\/C, chances are good that the electrons entering your home\u00a0 are coming from a combination of nuclear, coal, wind, natural gas, and other types of generators.[\/vc_column_text][\/vc_column][vc_column width=&#8221;1\/6&#8243;][\/vc_column][\/vc_row][vc_row][vc_column][vc_separator color=&#8221;custom&#8221; align=&#8221;align_left&#8221; css=&#8221;.vc_custom_1475699807900{background-color: #0f4b91 !important;}&#8221;][\/vc_column][\/vc_row][vc_row][vc_column][vc_custom_heading text=&#8221;What are RECs?&#8221; font_container=&#8221;tag:h2|font_size:24|text_align:left&#8221; use_theme_fonts=&#8221;yes&#8221;][\/vc_column][\/vc_row][vc_row][vc_column width=&#8221;5\/6&#8243;][vc_column_text] When you sign up for an alternative supplier\u2019s green plan,\u00a0 the company you chose will take some of your money to buy Renewable Energy Certificates, or RECs. Also known as \u201crenewable energy credits,\u201d RECs were created to measure the positive environmental qualities of that renewable energy and give developers an incentive to build more renewable energy. For one megawatt-hour (1,000 kilowatt-hours) of electricity produced by a renewable energy generator, like a wind turbine or a solar panel, one REC is also created. RECs are then traded in special energy markets and eventually bought by such parties as utilities that need to meet state renewable energy requirements, alternative suppliers that offer green plans, and individuals looking for ways to lessen their environmental impact. [\/vc_column_text][\/vc_column][vc_column width=&#8221;1\/6&#8243;][\/vc_column][\/vc_row][vc_row][vc_column][vc_separator color=&#8221;custom&#8221; align=&#8221;align_left&#8221; css=&#8221;.vc_custom_1475699807900{background-color: #0f4b91 !important;}&#8221;][\/vc_column][\/vc_row][vc_row][vc_column][vc_custom_heading text=&#8221;How do RECs work?&#8221; font_container=&#8221;tag:h2|font_size:24|text_align:left&#8221; use_theme_fonts=&#8221;yes&#8221;][\/vc_column][\/vc_row][vc_row][vc_column width=&#8221;5\/6&#8243;][vc_column_text] Beginning in the late 1990s, a system for tracking clean energy became necessary, as consumers became more interested in renewable energy and a number of states (including Illinois) adopted Renewable Portfolio Standards requiring utilities to acquire a percentage of their energy from renewable resources. Here\u2019s an example of how RECs work:\u00a0When a wind farm adds 1 megawatt-hour (MWh) of electricity to the power grid, a buyer can purchase both the electricity generated and a REC representing the environmental benefits of that clean electricity. The buyer can also choose to purchase the electricity only, and the REC can be sold to another buyer at market value by the wind farm. In short, someone who purchases and claims a REC is ensuring that\u2014even if the power they consume isn\u2019t coming from a [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"inline_featured_image":false,"footnotes":""},"class_list":["post-1829","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/www.citizensutilityboard.org\/wp-json\/wp\/v2\/pages\/1829","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.citizensutilityboard.org\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.citizensutilityboard.org\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.citizensutilityboard.org\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.citizensutilityboard.org\/wp-json\/wp\/v2\/comments?post=1829"}],"version-history":[{"count":1,"href":"https:\/\/www.citizensutilityboard.org\/wp-json\/wp\/v2\/pages\/1829\/revisions"}],"predecessor-version":[{"id":43266,"href":"https:\/\/www.citizensutilityboard.org\/wp-json\/wp\/v2\/pages\/1829\/revisions\/43266"}],"wp:attachment":[{"href":"https:\/\/www.citizensutilityboard.org\/wp-json\/wp\/v2\/media?parent=1829"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}