Renewable Energy Certificates (RECs) are tradable commodities that represent proof that one megawatt-hour of electricity was generated from a renewable energy source, such as solar, wind, or hydropower. They help track and promote the use of clean energy by allowing consumers and businesses to support renewable energy generation even if they cannot produce it themselves. When a renewable energy facility generates electricity, it receives RECs that can be sold or traded. By purchasing these certificates, individuals and companies can claim to use renewable energy, contributing to sustainability goals and reducing their carbon footprint.