How do onsite solar and RECs differ for meeting renewable targets

Onsite solar vs. Renewable Energy Certificates (RECs)

Onsite solar produces physical electricity directly at a facility, reducing the business’s grid consumption and associated emissions. Renewable Energy Certificates (RECs) are tradable instruments that represent the environmental attributes of renewable generation; purchasing RECs allows a business to claim renewable energy use even if the physical electrons they consume come from the grid.

Differences and uses:

• Onsite solar: Tangible local generation, local grid benefits, and potential resilience advantages
• RECs: Flexible way to claim renewable energy when onsite generation isn't feasible or to meet additional targets

Strategic approach

• Combine onsite generation with REC purchases to meet targets quickly and locally
• Use RECs for residual offsets if onsite capacity is limited
• Ensure RECs are retired and verified to avoid double-counting

Both approaches play valid roles in corporate renewable strategies; onsite generation delivers operational benefits while RECs offer flexibility and rapid progress toward goals.