By Michael DeCaluwe, CEM | February 21, 2022
In today’s ever-changing renewables energy market, it is not likely that costs for renewables will be returning to normal in the near future, according to experts. But experts are hopeful that some price pressure will ease by the end of 2022.
One avenue for a company to meet some (or all) of their carbon foot reduction goals is to purchase Renewable Energy Certificates, or RECs. The creation of RECs is primarily overseen by the EPA (Environmental Protection Agency), which certifies that a power generator is providing their power from a renewable source. This generator can sell these RECs to energy consumers as a way to off-set their carbon footprint.
In the span of one year, the cost of these RECs has quadrupled. According to this article, there are predictions that the cost for RECs will subside some by the end of 2022. On the other hand, there are other estimates that the cost of RECs will continue to increase as more state and corporate renewable mandates increase the demand for RECs.
For those energy users that are looking to reduce their carbon footprint, they may want to act NOW to protect their budget against any further increase.
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