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What are RECs?

IREA is aware of other companies promising to sell 100% renewable energy in our service territory. The companies claim that, for every kWh of electricity used by the customer, a kWh of wind energy will be produced. The customer pays their bill to this new company, which, in turn, pays IREA what is owed for the customer’s energy usage and collects an additional fee for this service.

Customers should be aware that this arrangement is essentially a purchase of wind RECs, similar to those offered by IREA. Renewable energy is not actually being delivered by these companies. Customers who sign up still receive the same electricity from IREA they would otherwise receive. Customers should always compare prices for RECs and analyze the costs and benefits prior to entering into such an arrangement.

What benefit do I get from buying RECs?
Many people consider the purchase of RECs to be a simple way to support renewable energy generation without having to commit to solar panel or wind turbine installations on their property. RECs can be purchased separately from electrical power and each REC serves as “proof” that 1 megawatt-hour of electricity was generated from an eligible renewable energy resource and distributed to the grid. Though REC customers are not receiving green power to their home or business to a greater extent than any other customer, RECs entitle them to claim the environmental attributes of the renewable energy represented by the RECs because the REC purchase has supported renewable energy production.

Why should I buy RECs from IREA?
While many private companies offer RECs and similar commodities, IREA has created an REC program that makes RECs more affordable for our consumers. IREA obtains RECs through its wholesale power purchases and passes along the savings to consumers who buy our RECs. We also do not add any markups or additional fees to REC transactions. IREA’s current prices are:

• Solar – 5.5 cents per kilowatt-hour (kWh)
• Wind – 1 cent per kilowatt-hour (kWh)

IREA customers have the option of acquiring RECs as a one-time purchase or on a monthly basis of any dollar amount of $5 or more. If you agree to purchase an REC product, IREA will collect your amount due, designated by you, by adding a separate line item to your monthly billing statement. One-time purchases will be added only to the next billing statement, while monthly purchases will be added to your statement each month until you notify IREA in writing that you no longer wish to participate. Please note that this is a voluntary program, and your selected purchase amount is in no way associated with your monthly electric usage and charges.

Sign up for IREA’s REC program via this form.

Have more questions? Visit our REC FAQs section.