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Purchase renewable energy credits (RECs): Renewable energy credits are tradable, non-tangible commodities that represent proof that 1 MWh of electricity was generated from a renewable energy resource and was then fed into the shared system of power lines that transport energy. Renewable energy credits are produced when a renewable energy source (wind, solar, hydroelectric, etc.) generates one MWh of electricity and sends it to the grid. For example, if an onshore solar power facility produces 5 MWh of electricity, they have 5 renewable energy credits that they can either sell or keep. Companies may purchase RECs along with their electricity, and the RECs certify that a certain amount of the electricity was from a renewable source. Once a REC has been sold, it cannot be purchased again. Each renewable energy credit has a unique number and includes information about where it was generated, what type of renewable source it came from, and the date it was generated. Additionally, the exchange of all RECs is tracked and recorded. RECs provide you with definite proof that you are using renewable energy, which is favorable to investors and consumers. Additionally, RECs negate the need to invest in capital-intensive projects, like installing solar panels. They also serve as a means of reducing emissions without implementing stringent efficiency measures. This is ideal if you have a large portfolio of buildings or your company has branches in multiple locations. Financing Renewable Energy Projects: Many states and utilities offer financial incentives for installing renewable generation projects. These incentives may make your renewable energy project feasible or improve its financial return on investment. To learn more about federal, state, and utility incentive programs, visit the Database of State Incentives for Renewables and Efficiency. LEVERS FOR DECARBONIZATION Electrification Shifting from fossil fuel-based systems (like gasoline cars and gas heating) to electric systems powered by renewable energy (such as electric vehicles and heat pumps) Fuel switching or electrification is the main driver of decarbonization in buildings. This largely refers to switching space and water heating from gas or propane-powered appliances to electric alternatives, such as heat pumps. This electricity, however, must come from low-carbon sources, and property owners should commit to purchasing an increasing share of their electricity from renewable power for their portfolio. Sustainability & Energy Management Simplified