RECs were created as a means to track progress towards and compliance with states' Renewable Portfolio Standards (RPS), meant to support a cleaner generation mix.
RECs should not be confused with the tax credits that renewable energy projects are eligible to receive.
In the United States, as part of the 2009 economic stimulus package, renewable Energy Rebate Programs are in place.
Because RECs provide an additional revenue stream to renewable energy projects, they are essentially a subsidy meant to allow clean resources to economically compete with fossil fuel–based resources.
Opponents highlight that by purchasing RECs a customer can claim emissions “reduction” even if they do not actually reduce their end-use at all - or even increase it.