Understanding Renewable Energy Credits

June 7, 2022

A Beginner's Guide To RECs

Several large windmills on a hill at sunset

With the recent and rapid growth of the renewable energy market in the United States, you may have heard the term “RECs” thrown around quite a bit. The Environmental Protection Agency defines Renewable Energy Certificates (RECs) as “a market-based instrument that represents the property rights to the environmental, social, and other non-power attributes of renewable electricity generation”. But what does all that even mean? Let’s talk about it.


If you’re a part of the power grid, meaning that you are not generating all of your own power on site (solar panels on the roof, for example), how can you be sure that the electricity you’re getting through the power lines is green? Unfortunately, you can’t. Once the green energy is generated via solar, wind, geothermal, or another method, it’s all pumped into the power grid to be distributed to buildings across the country, mixing with all the traditionally generated power along the way. Think of a bag of marbles; if you had five blue marbles and put them into a bag with 15 other blue marbles, after shaking that bag up it’s impossible to tell which ones started out as YOUR blue marbles.


Since the purchase of green energy doesn’t ensure that you will actually receive green energy through the grid, there needed to be another way to give credit to those consumers who had purchased it. This is where RECs come in.

For every megawatt-hour (MWh) that is produced by renewable resources, the producer of that energy receives one REC. The REC is a certificate confirming that this producer has generated one MWh of electricity using renewable resources, and the REC itself becomes a physical representation of the social and environmental benefits of that one MWh of clean energy. These RECs can then be sold and serve to track and account for renewable energy generation and use, as well as a second source of income for power generators.


When most people purchases renewable energy, what they are really purchasing are RECs. The purchase of these RECs essentially funds the generation of clean energy, and you, the buyer, receive credit for supporting renewable power. So even though your five blue marbles got lost in the mix, you still get credit for contributing them in the first place.



In short, RECs are an affordable and accessible way for ordinary people to take advantage of the booming renewable energy industry in the United States. The information in this article is not comprehensive- RECs are a very complex thing. If you’re interested in the nitty-gritty details of RECs, we recommend visiting this page from the U.S. Environmental Protection Agency or checking out this article by David Roberts at Vox.   

Why Everyone Is Talking About Utility Bill Audits (And You Should Too)

By Russell Lacey • June 24, 2026
For most business owners, the monthly utility bill is just another line item to be paid and filed away. You glance at the total, ensure it isn't astronomically higher than last month, and move on. But in 2026, with energy markets facing unprecedented volatility and complex new tariff structures, that "glance and pay" strategy is costing American businesses billions in overpayments. The good news? You don’t have to just accept these costs as the price of doing business. Everyone is talking about utility bill audits because they have transitioned from a "nice-to-have" occasional check to a critical financial strategy. At Electric Advisors, Inc., we’ve seen firsthand how a meticulous review of historical invoices can uncover significant refunds and permanent rate reductions. 

The Easiest 8-12% Your Business Will Ever Save: Community Solar in MD & DE

By Russell Lacey • June 15, 2026
In the world of commercial operations, finding a way to slash overhead by double digits without spending a dime upfront is usually a red flag for a "too good to be true" offer. But in 2026, for businesses operating within the BGE, Pepco, Potomac Edison, and Delmarva utility territories across Maryland and Delaware, this isn't a sales pitch, it’s a regulatory reality. Community solar has evolved from a niche pilot program into a mainstream financial strategy for savvy business owners. If your business pays its own utility bills but doesn't have the roof space, the capital, or the long-term lease to install traditional solar panels, community solar is your bridge to immediate savings. The good news? You can typically reduce your monthly electricity spend by 8% to 12% simply by enrolling. Here is how your business can capture this "easy win." Key Takeaways Zero Upfront Costs: No installation, no equipment maintenance, and no capital expenditure. Guaranteed Savings: Most subscriptions offer a fixed percentage discount (typically 8–12%) on the solar credits applied to your bill. Tenant-Friendly: Perfect for businesses that rent their office, warehouse, or retail space. Market Reach: Available to businesses in BGE, Pepco, Potomac Edison, and Delmarva (MD & DE) territories. Risk Mitigation: Electric Advisors handles the vetting to ensure you choose a project with favorable terms and no hidden cancellation fees.

Beating the "Summer Surge": Preparing Your Business for June 1st

By Russell Lacey • April 17, 2026
For most business owners in Washington, D.C. and Maryland, June 1st marks the unofficial start of summer: the return of rooftop happy hours, tourists swarming the National Mall, and the inevitable cranking of the HVAC system. But in the world of energy management, June 1st is something much more significant. It is the "Energy New Year." If you manage a commercial property, a non-profit, or a restaurant, this date represents the reset button for how your utility costs are calculated for the next twelve months. While many decision-makers focus solely on the "supply rate" on their bill, there is a hidden mechanism called the Peak Load Contribution (PLC) that could be quietly inflating your costs by thousands of dollars The good news? You aren’t powerless. By understanding how the grid works and taking a few strategic steps this spring, you can "beat the surge" and secure better financial predictability for your organization. The June 1st Milestone: Why It’s the "Energy New Year" In the Mid-Atlantic region: specifically within the territories served by utilities like Pepco and BGE: we operate under the PJM Interconnection . PJM is the regional transmission organization that coordinates the movement of wholesale electricity across 13 states and D.C. Every year on June 1st, PJM begins a new "delivery year." This is the date when the "Capacity Tags" (or PLC) assigned to every commercial building are updated based on the previous summer’s usage. Why does this matter to you? Because the capacity charge often makes up 25% to 40% of a commercial electricity bill. If your building was inefficient during the hottest days of last summer, you are about to pay the price for it starting this June. Conversely, what you do this summer will dictate your fixed costs for June 2027 through May 2028.  The Hidden Problem: Understanding Capacity Charges and Your PLC Most business owners look at their bill and see "Kilowatt-hours (kWh)": that’s how much energy you used. But the Capacity Charge is based on your "Peak Load Contribution." Think of it like a "reservation fee" for the grid. PJM needs to ensure there is enough power available if every single building turned on every single light and AC unit at the exact same moment. To fund this readiness, they charge businesses based on their highest usage during the grid's "Five Peak Hours" of the previous summer. The Problem: If your restaurant, condo building, or school had a massive spike in usage on a Tuesday afternoon in July when the grid was stressed, your PLC (or Capacity Tag) will be high. You will then be billed at that "peak" rate every single month for the following year, regardless of how little energy you use in the winter. For many commercial clients, this is a "ghost charge" that feels impossible to control. But with the right services , it becomes a manageable variable.