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Renewable Energy Credits (RECs) represent the financial value of the green energy produced from solar power. There are rapidly expanding REC markets throughout the world. Green power producers are rewarded for their investment by being able to sell their RECs to buyers who are seeking to reduce their emissions, either because through their own initiative or because of regulation. Once a unit of clean energy is sold it cannot be re-sold, which means industries have to invest in more clean power through RECs in order to emit more CO2.

California has not yet established the rules for the RECs market. Major utilities are arguing that they should own 100% of the RECs generated by customer-owned solar energy systems. Their argument is that since the PV owner received an incentive from California ratepayers, the utility (representing the ratepayers) should recoup a portion of the investment by claiming 100% of the REC value.

But, if this position is approved by the CPUC, then PV installed by homes and businesses California would essentially create NO environmental benefit since the utilities would recoup the REC value, and simply reduce the amount of clean power they would otherwise have to buy under the Renewable Portfolio Standard.

This is unacceptable.

Preserving customer ownership of the RECs will make more solar projects possible by increasing the revenue stream to the customer and rewarding early adopters of solar. California needs to get this right.

MAKE YOUR VOICE HEARD

Please email your message through the CPUC's new online comments form. You may want to include your profession, organization, relationship to solar issues, etc.

Step 1: go to http://www.cpuc.ca.gov/static/forms/feedback.htm

Step 2: Choose "email President Peevey"

Step 3: Enter your name and email, type subject "Save Our RECs!"

Step 4: Copy and paste the sample letter below, edit as you like, and submit.

Step 5: You can also print your email and mail the hardcopy to President Peevey at this address: California Public Utilities Commission 505 Van Ness Avenue San Francisco, CA 94102

Sample Letter

Dear President Peevey:

I am writing to strongly encourage the CPUC to ensure that solar RECs are owned by the PV system owner, because:

Customer ownership of solar RECs will greatly accelerate the installation of solar power, while 100% utility ownership would monopolize the California REC market before it has a chance to start.
If the utilities owned all RECs the solar consumer is no longer truly investing in green power – the “green” portion of the power would be owned by the utility – thereby reducing the consumers’ ability to offset their own carbon dioxide emissions.
The investment in solar is made primarily by the customer, then by the state (through ratepayer funds), and finally by the federal government through tax credits. The RECs should not be donated to the utilities when all other parties are making the majority of the investment in the equipment.
Ratepayers benefit when system owners retain RECs because the reduction in load reduces the utility RPS purchase obligation.

Sincerely,

[your name, business, address]

Please take a minute and fight to preserve your right to sell the green credits that your solar system produces!

Sincerely,

Michael Lind