A Buyers Guide to Renewable Energy Certificates (RECs)

Buying RECs isn’t simple. Costs vary, compliance rules differ by state, and voluntary frameworks like RE100 or Green-e add layers of complexity. Buyers need to understand details like vintage, registry, and COD to make purchases that count. Innovo solves this by enriching every REC with 16+ data points from vintage, COD, location, registry, to technology type, so that buyers see exactly what they’re purchasing and make informed decisions. 

What factors drive REC prices?

The cost of a REC depends on whether it’s traded in a voluntary market or a compliance market. Voluntary RECs, where supply is abundant, can sell for a couple of dollars, while compliance RECs in constrained states can exceed twenty dollars each. Buyers care because price signals scarcity, policy pressure, and the reputational strength of the claim. A company may choose cheaper voluntary RECs to meet broad Scope 2 goals or pay more for compliance-grade RECs that satisfy specific regulatory obligations.

Prices are shaped by supply and demand in each state or registry. Factors include how strict the RPS is, how much new renewable capacity comes online, and whether the RECs qualify for programs like Green-e or RE100. Buyers care because price often reflects whether a REC is plentiful or scarce and how credible it will look in reports. A buyer might pay more for a REC from a new solar project in a tight market versus a discounted older vintage from an oversupplied region.

Should I buy RECs in advance or on the spot market?

Forward purchases let buyers lock in price and volume months or even years ahead. That matters when compliance deadlines or corporate reporting commitments are non-negotiable. Spot purchases, on the other hand, give flexibility but carry the risk of price spikes or limited supply. A buyer might use forwards to secure a baseline of RECs for compliance, then buy spot RECs later to fill unexpected gaps or meet new voluntary targets.

Waiting can save money if prices fall, but it can also backfire if markets tighten as deadlines approach. Buyers risk ending up with RECs that no longer qualify for voluntary programs, such as those outside Green-e’s 21-month vintage limit. They also risk paying the Alternative Compliance Payment if prices exceed budget. Some buyers hedge by purchasing part of their volume early and leaving the rest to the spot market, balancing flexibility with certainty.

What is RPS classification, and why does it matter?

States assign RECs to different “classes” or tiers based on the technology type and generation attributes. Compliance programs only accept certain classes, meaning not all RECs are interchangeable. Buyers care because purchasing the wrong class leaves them exposed to penalties or uncovered obligations. A utility might choose Class I RECs from wind to meet an RPS requirement, while a corporate might pick non-compliance RECs if they only need voluntary coverage.

What about voluntary frameworks like RE100 and Green-e?

Voluntary frameworks provide rules for how companies measure and report renewable electricity use under Scope 2. RE100 emphasizes credible procurement and facility age, while Green-e requires strict verification of vintage, ownership, and retirement. Buyers care because these programs shape credibility with investors and peers. A company might pay more for Green-e certified RECs to meet disclosure standards, while another may use non-certified RECs if reputational signaling isn’t a priority.

Why does a REC's registry matter?

Registries are the official systems that issue, track, and retire RECs, preventing double counting. A REC’s registry can determine which markets or compliance programs it qualifies for. Buyers care because some RPS programs only recognize RECs issued within the registry that services the state's energy grid, while corporates may want RECs from the same registry as their operating footprint. Choosing one registry over another can be the difference between a REC counting toward an obligation or being ineligible.

Does location of generation matter?

State of generation ties the REC to a specific geography and policy environment. In compliance markets, many states require RECs to come from in-state facilities to count toward RPS targets. Buyers also use state data for reputational purposes, such as aligning renewable claims with the states where they operate. A buyer with facilities in Texas may choose Texas-sourced RECs for local impact, while another with a compliance need in Massachusetts will buy in-state RECs to meet regulations.

Why does technology type matter?

Technology type shows whether a REC was generated from wind, solar, hydro, biomass, or another renewable resource. It matters because compliance programs classify technologies differently, and corporates often prefer certain technologies for brand alignment. Buyers may choose solar RECs to match a solar-heavy strategy, or biomass RECs if those qualify under their state’s Class II RPS requirements. The choice reflects both compliance eligibility and the story a company wants to tell investors and customers.

Why is REC vintage important?

Vintage is the date when the renewable energy was generated, and each REC carries that timestamp. Voluntary frameworks like Green-e only accept vintages within 21 months, and RE100 expects alignment with reporting years. Buyers care because a REC outside the right vintage window won’t count toward their targets. Companies may choose recent vintages for eligibility and credibility, while others accept older vintages if they’re cheaper and still meet minimum requirements.

Why do buyers check facility COD?

COD, or commercial operation date, tells buyers when a facility began generating electricity. Many corporates prefer RECs from newer facilities to demonstrate “additionality,” meaning their purchase supports new renewable capacity. Buyers care because voluntary standards like RE100 and Green-e sometimes set COD thresholds to ensure relevance. A company might choose a REC from a project built in the last five years to show market impact, or accept an older facility REC if cost is the deciding factor.

Why do buyers need visibility into all these details?

Because a REC’s value is more than just the certificate itself, it’s in whether it meets the buyer’s compliance needs, voluntary reporting frameworks, and reputational goals. Price alone doesn’t tell you that. Without visibility into registry, state, technology, vintage, and COD, buyers risk purchasing RECs that don’t count. Clear data transforms RECs from anonymous credits into strategic instruments.

How does Innovo support buyers?

Innovo enriches every REC with more than 16 data points, including vintage, COD, registry, classification, technology type, and more. That transparency lets buyers match their procurement to compliance rules and voluntary frameworks with confidence. It eliminates the guesswork of whether a REC qualifies and reduces the back-office burden of piecing data together from multiple sources. With Innovo, REC procurement becomes high-impact and straightforward.