REC Eligibility Ruling, On Deck

By: Stuart Wood, 10/3/11


The California Energy Commission (CEC) has scheduled a workshop for this Friday, October 7th to discuss proposed changes to their Renewables Portfolio Standard Eligibility guidebook.

A key item to be discussed is the eligibility status of Renewable Energy Credits (RECs) produced from Distributed Generation (DG) facilities. In their Summary of Revisions, the CEC has included some very specific language on the treatment of RECs:

“Allow unbundled renewable energy credits (RECs) to be used for RPS compliance.”

“Allow the eligibility of renewable distributed generation facilities and does not exclude a facility’s participation in a rate-payer funded incentive program or net metering in applying for RPS certification.”

This is very encouraging news for residential and commercial solar system owners in California who are included in the ‘Distributed Generation’ category. In this long anticipated ruling, the CEC is clearly saying that DG facilities will be eligible to sell their RECs. Furthermore, if a system owner previously took state rebate money (i.e. CSI program) and is net metered, which virtually all DG solar system systems are, they will still be eligible to participate.

Now that it looks increasingly likely that RECs will have monetary value soon, it is time sensitive that solar system owners register their system with the Western Renewable Energy Generation Information System (WREGIS), REC registry and tracking system. A system owner starts accumulating and banking RECs only after their system is registered and certified by WREGIS. It is not possible to go back into previous years and retroactively create RECs on past generation.

Renewable Energy Credits represent a great opportunity for the California DG solar sector, especially considering the CSI program is riding off into the sunset. The purpose of the CEC workshop is to solicit comment from interested parties; it is free for anyone to attend and will be archived on the CEC website. Leaf Exchange is helping to educate the California solar community on RECs and will continue to post important updates.

About Leaf Exchange:
Leaf Exchange is a Renewable Energy Credit brokerage & exchange service for California solar system owners. We provide REC market education, certification services, and a venue for system owners to sell their Certificates. Leaf Exchange registers systems into WREGIS for no cost, so system owners can start banking their RECs to sell at a later date. For more information visit www.theleafexchange.com

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