Renewable Energy Credits (RECs) are tradable certificates that serve two primary functions: They track and verify the use of renewable energy and allow businesses and individuals to offset their carbon footprint. Each REC represents the environmental benefits of producing one MWh of renewable energy, and they can be bought and sold in a market, enabling companies to meet sustainability goals and regulatory requirements without having to produce renewable energy directly. The purchase of RECs supports the development of new renewable energy projects, encouraging more investment in the sector and contributing to a greener grid overall.