Many organisations want to reduce their carbon footprint or meet sustainability targets, but installing renewable energy infrastructure on-site is not always possible. Space limitations, building ownership constraints, or infrastructure limitations can make on-site solar deployment difficult. Renewable Energy Certificates (RECs) offer an alternative pathway to support renewable energy generation while demonstrating your organisation’s commitment to clean energy.
TL;DR
Renewable Energy Certificates (RECs) allow organisations to support renewable energy generation without installing their own renewable systems. With RECs, your organisation can:
• Demonstrate renewable energy consumption
• Support solar and other renewable generation projects
• Meet sustainability and ESG commitments
• Reduce reported Scope 2 emissions under recognised frameworks
What are renewable energy certificates?
Renewable Energy Certificates represent proof that one megawatt-hour (MWh) of electricity has been generated from renewable energy sources. When renewable electricity is produced, such as from solar power plants, a corresponding certificate is created. This certificate can be purchased by organisations that wish to claim renewable energy usage.
The certificate and the electricity are separate commodities:
• The electricity flows into the power grid
• The certificate represents the environmental attribute of renewable generation
By purchasing RECs, organisations can support renewable energy generation even if they consume electricity from the grid.
Why organisations use RECs
Many organisations are committing to renewable energy targets as part of their sustainability strategy. However, not every organisation can install solar panels on their buildings or facilities.
Common reasons include:
• Limited rooftop space
• Buildings located in dense urban environments
• Tenancy restrictions in leased offices
• Infrastructure limitations
RECs provide a practical way for companies to participate in the renewable energy transition while continuing to operate within these constraints.
Supporting corporate sustainability goals
RECs are widely used by organisations to demonstrate renewable energy consumption as part of sustainability reporting. They can support initiatives such as:
• Corporate ESG reporting
• Renewable energy procurement targets
• Scope 2 emissions reduction strategies
• ustainability commitments to customers and investors
When sourced from verified renewable projects, RECs provide traceable documentation of renewable energy generation.
RECs and solar energy development
Renewable Energy Certificates also play an important role in supporting the growth of renewable energy projects. Revenue from REC purchases helps renewable developers improve the financial viability of solar and other renewable installations. By purchasing RECs, organisations contribute to the expansion of renewable energy capacity within the energy system. This creates a positive feedback loop where increased demand for certificates supports additional renewable energy development.
Verified renewable energy sources
RECs available through Eigen Digital originate from renewable energy generation projects such as solar power plants. Each certificate is linked to renewable energy production and can be verified through recognised registries that track the creation and retirement of certificates. This ensures transparency and credibility for organisations that use RECs to support sustainability reporting.
Integrating RECs with your energy strategy
For many organisations, RECs are part of a broader renewable energy strategy that may include:
• On-site solar installations
• Energy efficiency improvements
• EV charging infrastructure
• Energy monitoring and management systems
Combining these solutions allows organisations to reduce emissions while improving energy visibility and operational efficiency.
