Renewable Energy Certificate Program FAQs
What is a REC?
A Renewable Energy Credit or Renewable Energy Certificate (REC) is a tradable renewable energy instrument that shows the ownership of 1MWh (1,000 kWh) of environmental attributes. When a REC is generated, it’s logged into a registry by the operator. These registries assign unique identifiers for each REC that note the place and time generated. Once entered into a registry, it can be traded within that system or other systems as a unique item.
When KUB buys renewable energy, it takes ownership of the REC associated with the power purchased. To support customers who have individual or corporate renewable energy goals, KUB is able to offer RECs for a competitive rate based on availability.
What does a REC cost?
As of February 1, 2026, REC prices are as follows:
- Solar: $5/REC (Approximately $0.005/kWh)
- Non-solar: $2/REC (Approximately $0.002/kWh)
REC costs are subject to change annually.
Where do KUB’s RECs come from?
All RECs offered through KUB programs come from renewable facilities that generate electricity from eligible renewable sources (e.g., solar, wind, hydroelectric, or biomass) and are geographically located within the TVA service area.
How do RECs help me meet sustainability goals?
RECs allow you to claim the environmental attributes of renewable energy electricity generation. RECs retired on your behalf can reduce your Scope 2 emissions when conducting emissions reporting and sustainability disclosures.
Are KUB RECs Green-E certified?
No. At this time, KUB does not require third-party certification of RECs it procures. RECs provided are sourced from reputable power providers within the Tennessee valley, and meet TVA’s standards for renewable energy generators. All RECs are logged and tracked within recognized registries to ensure proper documentation and tracking.
How many RECs am I able to buy?
Customers may request REC quantities for up to 105% of their annual electricity purchases from KUB. If your company has multiple KUB accounts, you may aggregate your annual energy use across all the accounts. When making your request, be sure to note all relevant accounts.
How will I know my RECs have been retired?
KUB provides documentation confirming REC retirement through a registry. You will receive an annual summary of the RECs retired on your behalf.
What does it meant to “retire” a REC?
When a REC is retired, it’s taken out of circulation permanently. This is to make sure someone else doesn’t claim the REC benefits through a duplicated claim.
Are RECs the same as carbon offsets?
No. RECs address electricity-related emissions (Scope 2) by matching renewable generation to your usage. Carbon offsets are typically used to count a net reduction in emissions through a completely different activity like reforestation or methane capture.
Do RECs change the electricity delivered to my home or business?
No. Your physical electricity supply remains the same. RECs represent the environmental attributes of renewable generation, not the actual electrons delivered.
How long does it take to process my REC purchase?
Once you’ve requested an amount of RECs, KUB will determine eligibility and availability within one month. Upon approval, you will receive a confirmation email. Your RECs will be retired on your behalf within the program’s reporting cycle. Typically, RECs for the prior year are retired and billed by the start of Q2 of the following year. So, for example, RECs generated in 2026 will be retired and billed in March or April of 2027.
Can individuals purchase RECs, or is this only for businesses?
At this time, program participation is limited to commercial and industrial customers.
What type of reporting can KUB RECs be used for?
Use KUB RECs for market-based Scope 2 reporting. REC claims are limited to use within the TVA service area.
How do I sign up for KUB's REC Program?
Customers can sign up at www.kub.org/renewable.