Renewable energy credits (RECs) are certificates that represent the environmental benefits of generating electricity from renewable sources like solar, wind, or hydropower. Each credit typically corresponds to one megawatt-hour of renewable energy produced. They help track and promote the use of clean energy by allowing businesses and individuals to claim the use of renewable energy, even if they are not directly using it. RECs can be bought and sold in markets, providing financial incentives for energy producers to invest in renewable technologies. By purchasing RECs, companies can meet regulatory requirements or demonstrate their commitment to sustainability, contributing to the overall growth of the renewable energy sector.