RENEWABLE ENERGY CREDITS
Electricity enters the grid from many different sources. Because of this, there is no way to know exactly what energy source your electricity comes from.
To solve this problem, you can purchase Renewable Energy Credits (RECs) along with your electricity. RECs are certificates that transfer the “renewable” aspects of renewable energy to the owner. In other words, RECs, paired with electricity from the grid, are renewable energy that is being generated on your behalf.
NET METERING AGREEMENTS
Under this agreement the solar-generating business agrees to be charged for net power usage: if it generates excess power than it uses, it is credited; however, this does not mean the utility sends a check, it just means energy costs are offset.
SELLING TO THE UTILITY
When a solar-generating company "sells" electricity back to the grid, it is in essence receiving credits, rather than cash. These credits are different from SRECs. Because PV systems produce the most power during the day, producers are able to sell high at that time, extracting additional gains.
Note:
RECs: Renewable Energy Credits
SRECs: Solar Renewable Energy Credits
