– RECs certify that a bearer of a market-based instrument owns one MWh of renewable energy.
– RECs account for the amount of renewable energy that flows through the power grid.
– Unused power created from a renewable energy sources will receive a credit (REC) that can eventually be sold for profit.
– Among other types of market trades, REC swaps consist of trading RECs to profit from the disparity between the buy and sell price.
– Many states have varying RPS standards which increase trading.