We advise CA solar owners on registration & sale of Renewable Energy Certificates
Renewable energy certificates
California RECs
Solar energy systems already installed in California may be eligible to register and sell renewable energy certificates (RECs) for the renewable energy produced.
Alert - Contractors: California REC quotes
We provide REC purchase quotes for new projects, typically 1MW and up. We can provide multiple contract purchase options. To get started, we simply need the system layout, performance simulation, revenue grade monitoring (RGM) specs/proposal, and expected PTO date.
What is a REC?
A Renewable Energy Certificate (REC) represents credit for 1 megwatt-hour (MWH) or 1,000 kWh of solar or renewable power generation. The REC is unbundled from the actual electricity generated - so there is no impact on how your solar system operates or how it reduces your utility electric bill.
This is not a credit for selling power - rather, it is represents credit for the renewable aspect of the energy produced.
Can solar owners sell the RECs they generate?
Certain Regulated Parties (RPs) purchase RECs to meet their Low Carbon Fuel Standard requirements. Painted Rock Capital Group works with certain clients to register and sell the RECs generated by their existing or planned solar energy systems. Typically, buyers are interested in systems of 1 MW or more. A typical 1-megwatt (1,000 kW-DC) solar energy system may generate $15,000 or more in annual REC sale revenue. Painted Rock Capital Group and our past financing partners, including American Renewable Capital, Technology Credit Corporation, Ygrene Energy Fund, SunPower Corporation and Structured Finance Associates, have traditionally worked with many smaller solar customers. We are working on solutions to register and monetize RECs for many of our smaller, nonprofit solar clients, to enable them to participate in this revenue stream.
What is the Low Carbon Fuel Standard (LCFS)
California policymakers created the Low Carbon Fuel Standard to incentivize and facilitate the transition to lower carbon intensity (CI) transportation. Under the LCFS, Regulated Parties (RPs) are responsible purchasing LCFS credits and RECs to offset their use of carbon-intensive fossil fuels.
California originally passed AB32 in 2009, which enabled the California Air Resources Board (CARB) to begin designing the LCFS. Over the following decade, subsequent legislation, policy implementation and technology development have driven the creation of a market-based approach to reducing carbon intensity of transportation in California. CARB has published extensive bedtime reading on the LCFS on its website, which may provide helpful background to solar system owners. Painted Rock Capital Group can work with system owners directly to review your monitoring data, establish REC generation value, and potentially contract to sell your RECs.
California Air Resources Board (CARB) website overview of LCFS:
Prior to 2019-2020, there was no platform or market to sell RECs to Regulated Parties for compliance with the LCFS program. There is now a limited market for RECs from certain renewable energy and solar installations. The California REC market continues to evolve. Painted Rock Capital Group actively works with primary market participants to develop and implement REC monetization contracts for our certain of our clients with qualifying solar energy systems.
Please call us to discuss the suitability of your existing or planned solar project.
Evaluating REC monetization
Commercial, industrial, nonprofit and government solar energy systems may be viable for participation in the market for RECs.
REC registration is administered by the Western Renewable Energy Generating Information System (WREGIS). There are technical and practical requirements for commercial solar energy systems to be registered to produce tradable RECs.
As a starting point, we request these 5 key items:
- Single-line diagram (SLD) from the contractor / permit package
- System monitoring details; confirm revenue-grade (+/-0.5%)
- Permission-to-Operate (PTO) from utility
- Utility interconnection agreement
- PPA or financing agreement, if any
Painted Rock Capital can work with system owners to get their qualified projects registered, so that their systems can create or "mint" RECs.