The Renewable Energy Certificate (REC) market is still developing, and Powertrust is here to guide you through it. Whether you have questions about eligibility, pricing, or processes, don’t hesitate to reach out.
Eligibility
1. Are there limits on project size?
We prioritize projects with a nameplate capacity between 5 kWp and 5 MWp, though we’ve worked with projects as small as 0.5 kWp.
2. Are there limits on project type?
We favor new build projects that where a REC purchase demonstrates financial impact to ensure the project’s viability, resulting in additional climate and social impact. Operational projects are also considered where a REC agreement can meaningfully contribute to ongoing viability (e.g., funding gaps for operations and maintenance).
3. Do projects have to be off-grid?
No, both grid-tied and off-grid projects are eligible.
4. How do you define “high-impact”?
We look to the UN Sustainable Development Goals (SDGs) as a benchmark for social impact. In particular, SDG7 (clean energy) and SDG13 (climate action). For example, a rural mini-grid displacing diesel generators, providing energy access to disadvantaged communities, and powering essential services like schools or hospitals. Collaboration with local communities is also highly valued.
5. What are the basic criteria for project qualification?
- Applicants must demonstrate ownership of the environmental attributes of their projects. This can achieved in a few different ways depending on the market and contest. Please reach out to us to discuss your particular project.
- Powertrust must receive the generation data of your projects, ideally through an API or remote monitoring. We’ll work with you to find solutions for remote or rural projects with connectivity challenges.
Process and Payment
6. How do you determine the price for my project?
Prices depend on a number of factors including geography, project size, impact, etc. Prices can range from $5 to $30+USD per MWh. Price will always be determined before contracting.
7. Do you purchase RECs for historical data?
No
8. How is generation data collected?
We prefer API integrations with remote monitoring software but can accommodate CSV exports or manual meter reads via our platform for specific cases.
9. How are payments handled?
Payments are issued quarterly once the generation data is validated.
10. What are your typical contract terms?
Like pricing, contract length is project specific. Contract lengths have ranged from anything from 1 – 15 years.
Additional Information
11. What is the difference between a carbon credit and a REC?
A carbon credit represents one ton of CO₂ (or equivalent) avoided or removed from the atmosphere. It’s typically used for offsetting emissions.
A Renewable Energy Certificate (REC) represents 1 MWh of renewable electricity generated and the associated environmental attributes. It’s used to demonstrate renewable energy usage.
12. Can I generate both carbon credits and RECs from the same project?
No it is not possible to use both instruments for the same renewable energy system. You cannot sell the same environmental attribute twice, so you’ll need to carefully account for and separate the emissions reduction (carbon credit) and renewable energy generation (REC) to avoid double-counting.
13. Who does Powertrust sell these RECs to? and why are they interested in my project?
Powertrust works with multinational corporate buyers who use RECs to fulfill their sustainability commitments. Examples include Salesforce, Netflix and REI.