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SRECs Explained, Conceptually
SRECs allow buyers are sellers to renewable energy.
Why do SRECs exist at all? Why are they needed?
People and entities want to buy renewable energy. But, when renewable energy in the form of electricity flows onto the grid, it's all mixed together. To trade the value of the "renewableness" of energy generated across a grid between suppliers and consumers, there needs to be a a standardized way to certify it in an exacting way. That's what RECs essentially enable—the exchange of value of an intangible commodity.
