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Renewable Energy Credit

ERCOT acts as the program administrator of the Renewable Energy Credit (REC) trading program, which was established by the Public Utility Commission of Texas (PUCT) to (1) promote an additional 2,000 megawatts of new renewable energy capacity to be built in Texas by 2009, to be increased to 10,000 megawatts by 2025; and (2) allow customers to have access to providers of energy generated by renewable energy resources.

To earn RECs, a generator must be a new facility or a small producer that meets the requirements in PUCT Substantive Rule §25.173(c).

A facility is eligible to earn RECs if it relies exclusively on an energy source that is naturally regenerated such as solar, wind, geothermal, hydroelectric, wave/tidal, biomass or biomass-based waste products. The energy source can not be derived from fossil fuels, waste products from fossil fuels or waste products from inorganic sources.

Where to File: Applicants should visit the Renewable Energy Credit ProgramOpens new browser window website.

Who Should File: A generator that is a new facility or a small producer as defined in PUCT Substantive Rule 25.173(c), meets the requirements of 25.173 and would like to earn RECs is encouraged to file. All competitive retailers, as they are approved to do business in Texas, are required by law to register in the REC program and retire RECs annually.

When to File: Applicants may file 30 days after beginning operations in Texas.