Over the past decade, many California community colleges have made major investments in solar energy systems to reduce costs and demonstrate leadership in sustainability. But while most campuses rightly focus on utility bill savings from their solar generation, another valuable benefit often goes untapped: Renewable Energy Certificates (RECs).
Whether your district owns its solar projects outright or they’re operated under third-party agreements like Power Purchase Agreements (PPAs), you may be sitting on a recurring revenue opportunity worth hundreds of thousands of dollars annually—without installing a single additional panel.
RECs represent the environmental attributes of renewable energy production. For every megawatt-hour (MWh) of electricity your solar system produces, one REC is generated. These RECs can be sold to utilities, corporations, and institutions that need to meet renewable energy goals or voluntary sustainability targets.
Properly managing and monetizing RECs can turn your district’s solar systems into dual-purpose financial assets—delivering both utility bill savings and a new stream of revenue.
Effectively unlocking this value requires a structured approach and ongoing oversight. Key steps include:
When managed well, REC programs not only generate immediate value, but also provide reliable annual revenue—without requiring new capital outlay.
One California district that implemented a structured REC monetization strategy recently generated over $190,000 in new revenue within the first three years of launching their program. Their 4.3 MW solar portfolio had already been delivering utility savings. But by registering, certifying, and marketing their RECs, they unlocked a powerful additional benefit. This initiative required no new equipment or installation—only effective management. If you're interested in reviewing this case study, including financial results and program design details, we’d be happy to share it directly upon request.
While the financial benefits are compelling, it’s essential to understand how REC sales affect your ability to claim environmental benefits from your solar systems. According to the Federal Trade Commission’s Guides for the Use of Environmental Marketing Claims, once RECs are sold, the original owner can no longer truthfully claim to be "powered by solar" or to be reducing its carbon footprint from that solar energy. The environmental attribute is now owned by the REC buyer, not the system host.
The U.S. Environmental Protection Agency provides further clarification with examples:
Acceptable Claims
“We installed on-site solar, but our utility receives the RECs.”
“We supply our utility with solar to help meet their renewable targets.”
Unacceptable Claims
“Our PV system is powering our facility with solar electricity.”
“We’re using on-site solar to reduce our carbon footprint.”
If your college is pursuing sustainability certifications, climate action plans, or carbon reduction goals, it's important to weigh the financial value of selling RECs against the marketing and reporting value of retaining them.
If you’d like to learn more about how your college can generate revenue from RECs—without impacting your core solar savings—we’re here to help. We can also share a detailed case study from a public agency that successfully implemented this strategy.
Visit transformenergy.com/asset-management or contact David Burdick at david.burdick@transformenergy.com.