Understanding Renewable Energy Credits

There is much talk about renewable energy credits, but do you really know what these green tags are all about? In simplest terms, one of these renewable energy credits is a documented proof one megawatt hour of electricity was derived from a renewable energy source. These credits may then be bought and sold, and ultimately the owner of one of these credits has the authorization to claim ownership of renewable energy.

Industries initially eyed renewable energy credits with apprehension, but when tax incentives actually made the ownership of renewable energy a much coveted transaction, they quickly came on board with the idea and changed their ways of doing business. In return, the renewable energy credit program successfully brought about the changes in big business they sought.

Moreover, those who understand renewable energy credits also understand they provide copious green jobs. After all, the renewable energy source must be harnessed and wind farms (one example of a renewable energy methodology) require personnel to maintain the equipment and to certify the energy generation. Other qualifying technologies are solar electricity, geothermal energy and of course hydropower.

While these credits are here to stay, there is a good chance that the incentives administered by the program will increase. As such, business owners and also consumers will do well to be on the lookout for new credits, further discounts on equipment and state incentives. In some cases, this business opportunity has given rise to new home based businesses as well.