Real-world examples of usage of renewable energy certificates (RECs) in business

Best real-world examples of usage of renewable energy certificates (RECs) in business

The fastest way to understand RECs is to look at how companies actually use them. Below are some of the best examples of usage of renewable energy certificates (RECs) in business, across different sectors and sizes.

1. Tech companies using RECs to reach 100% renewable electricity claims

Large tech firms were early and heavy users of RECs because their operations are power-hungry and globally distributed.

Google, Microsoft, and Meta all began their renewable energy journeys by buying unbundled RECs to match their data center electricity use in the U.S. and Europe. Before they could build or contract for massive wind and solar projects, RECs were the quickest way to:

• Report lower Scope 2 emissions under the market-based method in the Greenhouse Gas Protocol.
• Signal demand for renewable energy in specific regions.
• Meet early public commitments, like “100% renewable electricity” by a target year.

Over time, these companies shifted from generic national RECs to more targeted purchases:

• Google started focusing on regional and time-matched RECs, trying to match its hourly consumption with renewable generation.
• Microsoft has combined virtual power purchase agreements (VPPAs) with project-specific RECs to support new wind and solar farms.

These are strong examples of usage of renewable energy certificates (RECs) in business as a bridge strategy: start with broad, inexpensive RECs, then move to higher-impact, project-specific certificates as internal capacity and budgets grow.

2. Retail chains using RECs to cover locations they can’t retrofit

Big-box retailers and supermarket chains often have thousands of stores, many in leased spaces where they can’t easily install rooftop solar.

A common example of usage of renewable energy certificates (RECs) in business retail strategy looks like this:

• Install on-site solar on company-owned distribution centers and flagship stores.
• Use green tariffs or utility green power programs where available.
• Buy unbundled RECs to cover the remaining electricity footprint, especially in:
  • Older buildings with limited roof capacity.
  • Leased properties where landlords control capital upgrades.
  • Regions with weak renewable policies or grid constraints.

For instance, several large U.S. retailers use Green‑e® Energy–certified RECs to match electricity use from stores that can’t host on-site renewables. This lets them:

• Report high percentages of renewable electricity across the portfolio.
• Keep a consistent sustainability narrative across all markets.
• Avoid being locked into long-term contracts where demand is uncertain.

This is one of the best examples of how RECs provide flexibility in complex real estate portfolios.

3. Manufacturers using RECs to support science-based climate targets

Industrial and manufacturing companies often face a tougher path to decarbonization than office-based businesses. Heavy loads, 24/7 operations, and older infrastructure make on-site renewables challenging.

Many manufacturers that commit to the Science Based Targets initiative (SBTi) use RECs to address Scope 2 emissions while they work on deeper energy efficiency and process changes. A typical pattern looks like:

• Conduct an energy audit and optimize processes to reduce baseline consumption.
• Sign long-term power purchase agreements (PPAs) for renewable power where the grid and policy environment make that feasible.
• Use RECs to cover remaining grid electricity, especially in:
  • Countries with limited renewable options.
  • Regions where PPAs are not yet financially or legally viable.

SBTi guidance allows the use of credible, additional RECs under the market-based accounting method, provided they meet quality criteria (e.g., recent vintage, geographic relevance). This makes manufacturers strong real examples of usage of renewable energy certificates (RECs) in business that are aligned with science-based decarbonization pathways.

For more on market-based Scope 2 accounting and RECs, see the Greenhouse Gas Protocol Scope 2 Guidance from the World Resources Institute: https://ghgprotocol.org/scope_2_guidance

4. Universities and hospitals as early adopters of green power and RECs

Universities and health systems in the U.S. were some of the earliest institutional buyers of green power and RECs. They often:

• Have large, campus-style loads that are easier to aggregate.
• Face pressure from students, patients, and communities to show climate leadership.
• Can plan on multi-decade time horizons.

A common example of usage of renewable energy certificates (RECs) in business-like institutions (even though they are often nonprofits) is the combination of on-site generation, PPAs, and RECs:

• A university installs a mid-sized solar array on campus buildings.
• It signs a long-term PPA for off-site wind power.
• It purchases additional RECs to cover the remaining electricity use and claim “100% renewable electricity” for campus operations.

Some hospitals and health systems follow similar models, often participating in EPA’s Green Power Partnership, which recognizes organizations that use green power, including RECs, above certain thresholds: https://www.epa.gov/greenpower

These cases are powerful examples of usage of renewable energy certificates (RECs) in business-like settings where public accountability and budget constraints both matter.

5. Small and mid-sized businesses using unbundled RECs as a first step

Not every company has the scale or credit rating to sign a 15-year PPA. For small and mid-sized businesses, unbundled RECs are often the most accessible entry point.

Common real examples include:

• A regional law firm matching 100% of its office electricity with Green‑e® certified RECs purchased annually through a broker.
• A software startup in a leased co-working space buying RECs to cover its estimated electricity footprint, because it has no control over the building’s energy procurement.
• A local manufacturing supplier using RECs to respond to customer pressure from large corporate buyers that request evidence of renewable electricity use.

These examples of usage of renewable energy certificates (RECs) in business show how even small organizations can participate in renewable energy markets without major capital expenditures. The key is to:

• Prioritize certified RECs from credible registries.
• Match volumes and locations as closely as possible to actual consumption.
• Use RECs as part of a broader plan, not the only climate action.

6. Financial and professional services firms using RECs to meet ESG expectations

Banks, insurers, and consulting firms are under intense scrutiny from investors and rating agencies on environmental, social, and governance (ESG) performance. Many of these companies have relatively low direct emissions but large Scope 2 footprints from global office networks and data centers.

A typical example of usage of renewable energy certificates (RECs) in business in this sector:

• Commit to net-zero or 100% renewable electricity by a specific year.
• Implement energy efficiency measures (LEDs, HVAC upgrades, smart building systems).
• Purchase regional RECs to match remaining electricity, often prioritizing:
  • New-build wind and solar projects.
  • RECs from markets where the company has major operations.

These RECs are then referenced in ESG reports, CDP disclosures, and sustainability indices. Because investors and rating agencies are increasingly sophisticated, firms are moving away from the cheapest, lowest-impact RECs toward higher-quality, more transparent options.

For ESG reporting expectations and how RECs fit in, CDP provides guidance and frameworks: https://www.cdp.net/en

7. Global companies using different REC-like instruments across regions

Outside the U.S., RECs go by different names but serve similar functions. Multinational companies often juggle a mix of instruments:

• U.S. and Canada: Renewable Energy Certificates (RECs).
• Europe: Guarantees of Origin (GOs).
• UK: Renewable Energy Guarantees of Origin (REGOs).
• Australia: Large-scale Generation Certificates (LGCs).

A multinational consumer goods company might:

• Use U.S. RECs to match electricity in North American factories.
• Buy European GOs to cover offices and plants in the EU.
• Purchase LGCs in Australia to support local renewable projects.

This patchwork of instruments is a real example of usage of renewable energy certificates (RECs) in business at a global scale, where the company:

• Aligns all instruments with a single internal renewable electricity target.
• Harmonizes reporting under the GHG Protocol’s market-based method.
• Manages procurement through centralized energy or sustainability teams.

The International Renewable Energy Certificate (I-REC) standard also plays a growing role in emerging markets, giving companies a way to buy RECs in countries that lack mature tracking systems.

8. Cities and public-sector entities acting like businesses in REC markets

While not strictly private businesses, cities, transit agencies, and public authorities often operate with business-like budgets and procurement processes. Many buy RECs to green their electricity use.

Examples include:

• City governments purchasing RECs to claim 100% renewable electricity for municipal buildings, streetlights, and water treatment facilities.
• Transit agencies using RECs to match the electricity used by electric buses and light rail systems.

These are instructive examples of usage of renewable energy certificates (RECs) in business-style operations, especially for utilities, infrastructure operators, and large campuses.

The U.S. Department of Energy’s Federal Energy Management Program (FEMP) provides guidance on how federal agencies can procure RECs as part of their renewable energy strategies: https://www.energy.gov/femp/renewable-energy-certificates

How RECs actually work in business settings

To understand why all these examples of usage of renewable energy certificates (RECs) in business look different, it helps to break down how RECs function in practice.

RECs as proof of renewable generation

In most markets, each REC represents the environmental attributes of 1 megawatt-hour (MWh) of renewable electricity generated and delivered to the grid. When a business buys and retires a REC in a tracking system, it can claim that MWh as part of its renewable electricity use.

Key points for companies:

• RECs separate the environmental attribute from the physical electricity. You might buy power from your local utility, but buy RECs from a wind farm in a different part of the same grid.
• Once a REC is retired on your behalf, no one else can claim that MWh of renewable electricity.
• Quality matters: vintage (how old the REC is), geography, technology, and certification all affect credibility.

Market-based vs location-based emissions

Under the Greenhouse Gas Protocol, companies report Scope 2 emissions using two methods:

• Location-based: Reflects the average grid mix where the electricity is consumed.
• Market-based: Reflects the specific contracts and instruments (like RECs) the company buys.

All of the earlier examples of usage of renewable energy certificates (RECs) in business rely on this market-based method. Without it, RECs would not change reported emissions; they would only be a financial transfer.

2024–2025 trends shaping REC usage in business

REC markets are not static. As of 2024–2025, several trends are reshaping how companies use them.

Quality over quantity

Stakeholders are increasingly skeptical of low-cost RECs that do little to drive new renewable capacity. As a result, more companies are:

• Prioritizing project-specific RECs over anonymous “grid mix” certificates.
• Favoring newer projects and contracts that clearly support additional capacity.
• Looking at hourly or sub-annual matching, not just annual totals.

This trend is visible in the shift from generic national RECs to regionally and temporally relevant instruments, especially among large tech and financial firms.

Integration with broader decarbonization strategies

RECs are no longer viewed as a stand-alone solution. Instead, they are one tool in a portfolio that includes:

• Energy efficiency and demand reduction.
• On-site solar, storage, and electrification.
• Long-term PPAs and green tariffs.
• Emerging options like 24/7 carbon-free energy procurement.

The best examples of usage of renewable energy certificates (RECs) in business now treat RECs as a flexible, short- to medium-term lever, not a permanent substitute for structural change.

Increasing regulatory and investor scrutiny

Regulators and investors are asking harder questions about environmental claims. In the U.S., the Federal Trade Commission (FTC) Green Guides and state-level consumer protection laws influence how companies can market “green power” and “100% renewable” claims when they rely on RECs.

At the same time, investors are pushing for more transparent climate disclosures. That pressure is nudging companies to:

• Disclose both location-based and market-based Scope 2 emissions.
• Explain how RECs fit into long-term decarbonization plans.
• Distinguish between high-impact and low-impact REC purchases.

Practical tips for businesses considering RECs

If you’re trying to move from theory to practice, here are some grounded lessons drawn from the real examples above:

• Treat RECs as one tool among many. Start with efficiency, then layer in RECs to close gaps.
• Prioritize quality over the absolute lowest price. Look for credible certification, recent vintage, and geographic relevance.
• Align REC purchases with your public targets and reporting frameworks (GHG Protocol, SBTi, CDP).
• Be transparent in marketing claims. If your renewable electricity target relies heavily on RECs, say so plainly.
• Use early REC purchases as a bridge to more structural solutions like PPAs, on-site solar, and demand flexibility.

When used thoughtfully, RECs can help businesses accelerate renewable adoption, support new projects, and send clear signals to policymakers and markets—without pretending they solve everything.

FAQ: examples and practical questions about RECs in business

What are some simple examples of usage of renewable energy certificates (RECs) in business?

Simple examples include a small office-based company buying Green‑e® certified RECs to match 100% of its annual electricity, or a regional retailer purchasing RECs to cover stores in older buildings where solar isn’t feasible. In both cases, the companies keep buying regular grid power but use RECs to claim that an equivalent amount of renewable electricity was generated on their behalf.

What is an example of a high-impact REC strategy compared to a low-impact one?

A low-impact example of usage of renewable energy certificates (RECs) in business would be buying the cheapest available certificates from old, already-paid-off hydro facilities with little evidence that the purchase supports new capacity. A higher-impact example would be signing a long-term contract for RECs from a new wind or solar project, where the developer can show that corporate demand helped finance construction.

Can RECs alone make a business “net-zero” or “carbon neutral”?

No. RECs only address Scope 2 emissions from purchased electricity, and even there, many stakeholders now expect companies to combine RECs with efficiency, electrification, and structural changes to energy procurement. Net-zero strategies also need to cover Scope 1 (direct) and Scope 3 (value chain) emissions, plus credible carbon removal for residual emissions.

How should a business choose between on-site solar and RECs?

On-site solar directly reduces grid electricity use and can hedge against future price volatility, but it requires capital, roof space, and favorable building conditions. RECs are more flexible and can be bought in small increments, making them attractive for leased spaces or small loads. Many of the best real examples of usage of renewable energy certificates (RECs) in business combine both: install on-site solar where it makes sense, then use RECs to cover the rest.

Are RECs recognized in major reporting frameworks?

Yes. The Greenhouse Gas Protocol’s Scope 2 Guidance explicitly recognizes RECs and similar instruments under the market-based method. CDP, SBTi, and many ESG ratings also accept RECs when they meet quality criteria and are transparently reported. That said, expectations are rising around quality, additionality, and the balance between RECs and deeper operational changes.