Expanding Our Reach: Sol Systems Now Offering MA Class I REC Management throughout New England
Insights |
By jacqueline.mayan@solsystems.com
By: Ignacio Perez-Hervada
If you own a solar system in New England, there’s good news—your system’s renewable energy certificates (RECs) could be worth more than you think. Sol Systems has expanded its REC management services to solar system owners in Massachusetts, Maine, Rhode Island, Connecticut, Vermont, and New Hampshire.
Whether you’re a solar system owner looking to monetize your RECs or an installer seeking a trusted partner to assist your customers, our experienced team is here to guide you through the process.
Understanding MA Class I RECs
When your solar panels generate electricity, they also produce Renewable Energy Certificates (RECs) — marketable assets that represent the environmental benefits of clean energy production. Each REC is equivalent to 1,000 kilowatt-hours of solar energy generation.
Why? Utilities are required to purchase RECs from renewable energy sources throughout New England to comply with Massachusetts renewable energy standards. This creates an opportunity for solar owners to earn income from their systems. For those interested in learning more about Massachusetts’ REC markets, take a look at our MA SREC/REC 101 Guide.
Who Qualifies for the MA Class I REC Program?
Solar systems located in Massachusetts and neighboring states — including Maine, Connecticut, Rhode Island, Vermont, and New Hampshire—are eligible for the MA Class I REC program. To participate, systems must be behind-the-meter (BTM), which includes both residential and commercial installations. This means whether you’re a homeowner or business, you can contribute to the collective effort to generate domestic, clean energy.
Why Partner with Sol Systems for MA Class I REC Management?
For more than 16 years, Sol Systems has specialized in Solar Renewable Energy Certificate (SREC) aggregation and management services, serving over 27,000 solar customers nationwide. Our team simplifies the process, ensuring that system owners receive competitive pricing for their RECs while providing flexible monetization options. You can always view our latest contract options and REC pricing by market directly on our website, here.
If you're a solar installer, EPC, or developer, partnering with Sol Systems means gaining access to:
Expert in-house customer support to help navigate the REC registration and monetization process
No-cost state and regional registration with the MA Department of Energy Resources (DOER) and New England Power Pool – Generation Information System (NEPOOL-GIS)
Dedicated partner support to streamline customer enrollment
Partner incentives that don’t impact customer pricing
Educational materials and a monthly newsletter to keep partners and customers informed
Customized pricing options for larger commercial systems
Competitive REC pricing through direct relationships with buyers
At Sol Systems, we make REC monetization simple and effective, whether you're an individual system owner or an industry partner helping customers navigate the market.
Ready to Get Started?
If you’re looking to maximize the value of your solar system or want to partner with us as an installer, we’d love to connect. Reach out to us at info@solsystems.com to learn more.
A Farm Less Ordinary: At the Intersection of Inclusion and Sustainability
Community Impact |
By Nathan Amer
Sol Systems (Sol) is proud to partner with A Farm Less Ordinary (AFLO) through our Sol Profit Share initiative. This program allows solar energy system owners participating in Sol Systems’ Solar Renewable Energy Certificates (“SREC”) aggregation solutions, including homeowners, businesses, and institutions, to choose a Sol Profit Share contract. With this contract, customers receive a guaranteed fixed payment per SREC, and they also share additional profits when SREC prices increase. Additionally, Sol donates 5% of the net Sol Profit Share to non-profit organizations that support renewable energy access and sustainability efforts.
With the 2023 proceeds from the Sol Profit Share initiative, Sol is supporting AFLO’s work in the Washington, DC area, where they provide opportunities for people with intellectual and developmental disabilities (ID/DD) through community-supported agriculture.
A Personal Story Turned Mission
AFLO was founded in 2016 by Greg Masucci and Maya Wechsler, inspired by their experience raising their son, Max. Max, who is nonverbal and autistic, motivated Greg and Maya to envision a future where individuals like him could lead fulfilling, independent lives beyond the age of 22, when school services typically end. In search of a safer, happier environment for Max and his siblings, the family moved from Washington, DC to Bluemont, VA, in 2014.
AFLO was born out of their desire to provide meaningful work and a sense of community for people with ID/DD. Today, the farm offers employment opportunities that help bridge the gaps in services and opportunities that individuals with ID/DD often face.
The Challenge for Individuals with ID/DD
In the United States, individuals with ID/DD face numerous challenges once they age out of educational and support services at 22. Employment opportunities are scarce, and many face barriers related to transportation and housing. In Loudoun County, VA, for instance, only 37.3% of residents with cognitive disabilities aged 18-64 are employed (2019).
Historically, people with disabilities lacked basic protections under U.S. law. While the Civil Rights Act of 1964 did not offer protection for individuals with disabilities, the enactment of Section 504 of the Rehabilitation Act in 1973, and later the passage of the Americans with Disabilities Act (ADA) in 1990, began to address these inequities. The lack of employment opportunities and support services can lead to social isolation and negatively impact mental and physical health. Despite these protections, challenges remain, and AFLO is working to help fill the gap.
Empowering Through Farming
From its humble beginnings, AFLO has grown into a two-location farm using organic growing methodologies and no chemical pesticides. They offer both employment and empowerment for its staff of "Growers"—local adolescents and adults with ID/DD who are the heart of AFLO’s mission. These Growers gain practical job skills, such as seeding, transplanting, and harvesting, while also developing social skills and physical coordination through tasks like weeding and planting, supporting a booth at markets, and sales. Evidence increasingly supports this concept known as "Green Care”, which suggests that working in nature improves health and mental well-being.
Community Impact and a commitment to growth
AFLO’s impact goes beyond the farm, benefiting the broader community. Growers contribute to local food security through its Community Supported Agriculture program, farmers markets, and donating thousands of pounds of food to local area food banks. Growers also take pride in bringing home a weekly share of the fruits of their labor, which provides healthy food and a tangible reminder of the rewards that reinforce their value and hard work. While a significant portion of AFLO's funding comes from donations and grants, their sales model directs at least 25 cents2 of every dollar generated back to the Growers’ paychecks, further underscoring their role as primary beneficiaries. By the end of 2024, AFLO could give 31 cents of every sales dollar directly to the Growers.
In addition to feeding, socializing, and educating their community, AFLO embraces a variety of organic and sustainable practices, uniquely situating themselves at the intersection of inclusion and sustainability. They plant cover crops, use rotational gardening, and practice polyculture by growing produce alongside herbs and flowers to attract beneficial insects. AFLO has blossomed by experimenting with and creating value-added products such as pickles, cut flowers, and an array of jams and jellies, fostering new kitchen and food safety skills and enabling year-round production and employment. These efforts generate a multiplier effect, extending the positive benefits of the farm’s work throughout the community.
With support from the 2023 Sol Profit Share funding, AFLO plans to expand their winter growing program, allowing more greenhouse gardening and increasing the available work hours and number of Growers on site. For many of the Growers, their work at AFLO is their primary source of socialization, income, and physical activity, making the farm’s growth even more impactful.
Building a More Inclusive Future
Sol is committed to supporting organizations like AFLO that create economic and social opportunities for their communities. By choosing the Sol Profit Share contract, customers have helped make this partnership with AFLO possible, advancing Sol’s mission to enable community impact through infrastructure and local collaboration.
To learn more about how AFLO is driving sustainable farming and positive change throughout their community, please visit their website at: https://www.afarmlessordinary.org/.
Sol Systems Sets the Standard: Beyond Carbon Neutral in 2023
Insights |
By Kristen Cugini and Jill Rathke
Sol Systems is committed to operating our business in ways that safeguard the planet and uplift people, the internal employee-led Sustainability Task Force (STF) is one example of this. STF supports the company’s ambitious carbon reduction goals – at corporate and project-level - and offers tools for employees to reduce their carbon footprint at work and home. Since 2019, Sol Systems’ STF has calculated its carbon footprint, implemented ways to reduce emissions, and developed a strategy for remaining emissions. For the past four years, Sol Systems has purchased carbon offsets for over 100% of our Scope 1, 2 and 3 GHG emissions. Most recently, we purchased 195 carbon credits from Carbon Footprint Ltd, to offset 110% of our 2023 emissions and remain carbon negative. Sol Systems has gone a step beyond just offsetting our Scope 1, 2 & 3 emissions, purchasing carbon credits that exceed our emissions to be certified as Carbon Neutral Plus by Carbon Footprint Ltd.
Energy Efficiency Carbon Credits: To address 2023 emissions, Sol Systems prioritized domestic carbon credits available through Carbon Footprint’s marketplace which meets the Quality Assurance Standard (QAS) for Carbon Offsetting. The only US-based carbon credits were from energy efficiency initiatives at the University of Illinois Urbana-Champaign. To generate these carbon credits, the university used a comprehensive approach that included launching dedicated retrocommissioning/recommissioning teams to optimize building systems, modernizing facilities through major renovations, adding high-efficiency gas boilers at its cogeneration power plant, and implementing comprehensive lighting retrofits. The funding that the university receives from its carbon credit program is reinvested into campus projects to help achieve strategic sustainability goals outlined in the university’s Illinois Climate Action Plan (iCAP).
Energy Efficiency Carbon Credits: To address 2023 emissions, Sol Systems prioritized domestic carbon credits available through Carbon Footprint’s marketplace which meets the Quality Assurance Standard (QAS) for Carbon Offsetting. The only US-based carbon credits were from energy efficiency initiatives at the University of Illinois Urbana-Champaign. To generate these carbon credits, the university used a comprehensive approach that included launching dedicated retrocommissioning/recommissioning teams to optimize building systems, modernizing facilities through major renovations, adding high-efficiency gas boilers at its cogeneration power plant, and implementing comprehensive lighting retrofits. The funding that the university receives from its carbon credit program is reinvested into campus projects to help achieve strategic sustainability goals outlined in the university’s Illinois Climate Action Plan (iCAP).
Sol Systems & The University of Illinois: Sol Systems was the project developer for the university’s Solar Farm 2.0, a 12.3 megawatt (MWdc) array. The solar farm, energized in 2021 and completed using zero waste construction methods, produces 20,000 MWh of clean electricity annually through bifacial panels and single-axis trackers. The installation supports ongoing research collaborations for pollinator habitats and agrivoltaics and hosts periodic K-12 and community educational tours.
Transparency and Accountability: Sol Systems openly shares details about our carbon footprint and purchase of carbon offsets. We believe that transparency is essential in building trust with stakeholders and setting a positive example to encourage other companies to adopt similar practices. Below we have included a breakdown of Sol Systems’ carbon footprint in 2023, audited by Carbon Footprint Ltd. Business travel continues to be the majority of emissions; the Sustainability Task Force is consistently looking for ways to cut emissions here before the use of carbon offsets.
Setting a Standard for Local Community Impact: Sol Systems' work with the university on Solar Farm 2.0 and its continued focus on organizational carbon reduction goals serve as a model for other mid-sized renewable energy developers. In coming years, Sol Systems plans to find more ways to reduce our emissions and remain beyond carbon neutral by sourcing high quality carbon credits from US-based projects, prioritizing carbon reduction and removal that can be completed on our solar projects and in the communities where they are located.
Fostering Community Connections: A Conversation with Rebecca Halford, Senior Director of Community Engagement at Sol Systems
Community Impact |
By Adaora Ifebigh
Rebecca Halford is Sol Systems’ Senior Director, Community Engagement where she leads teams to develop community engagement strategies for renewable energy projects and ensures inclusive stakeholder participation. With over a decade of experience in renewable energy and climate strategy, Rebecca's career includes senior roles at AES Corporation where she led stakeholder relations in the WECC region, and at Clean Energy Collective where she managed education and engagement for community solar projects.
I hope you enjoy learning how engaging communities on infrastructure projects fosters trust through consultation and communication, influencing their success and sustainability.
How did you begin your career in renewable energy, and what do you find most rewarding about this work? What motivates you in your role as Senior Director for Community Engagement?
Before getting into solar energy, I owned a small real estate brokerage in Albuquerque, NM that specialized in land development. I had a small team, and the market was robust. However, with the onset of the Great Recession, the financial landscape shifted dramatically; banks halted lending, and my business struggled. Despite the economic downturn and numerous business closures, I noticed solar was taking off. As people began to seek energy independence and take advantage of tax incentives, I discovered an opportunity that enabled me to present to small groups like real estate brokers, teaching them about the value of rooftop solar, and showing them how they could access solar energy incentives for their homes. From this role, I transitioned to community solar and then into utility-scale solar development.
My motivation has always been rooted in the desire to share the benefits of solar energy and educate communities about the advantages of transitioning to clean energy. A former colleague used to say, “This is homegrown energy,” highlighting the local pride associated with creating energy from within communities. I am passionate about forming connections, conveying the positive impacts of solar projects, and nurturing relationships to become a trusted partner in the process.
One of the most rewarding aspects of my role is celebrating the completion of a project. These projects require extensive time and effort, from introducing project ideas to the community and developing plans for local benefits, to realizing the impact through community programs. Knowing that our team has contributed to long-term positive change through our programs is incredibly fulfilling.
Sol Systems is a renewable energy firm dedicated to accelerating America's clean energy future and investing in local communities. What role does community engagement play at Sol Systems, and how does the community engagement team collaborate with other teams to ensure the successful development and construction of solar projects in local communities?
The Community Engagement Team plays a key role within Sol Systems, working with almost all the teams at Sol from the earliest stages of project development. Our development teams rely on us to assess opportunities and identify partnerships in the communities where we intend to develop or purchase early-stage projects. We keep track of our projects to understand the community feedback around a new infrastructure project. We work with the policy team to understand regulatory frameworks that impact solar development. Our partnership with the construction team ensures that the community's experience with the project is well-managed, addressing questions and concerns and keeping residents informed about construction timelines. Whether it’s the social and economic benefits, or during construction when it can be a little bit stressful or disruptive for a short period of time within a community, we represent the community and ensure that our teams hear their voice as we go through the different phases of a project.
The Sol Systems’ Impact Team is a valuable and unique partner as we establish relationships with communities at the beginning of a project. We provide a bird’s eye view of the community needs that could translate into future economic benefits for the community once the solar projects are operational. The community engagement team’s earliest efforts shape our relationships and the impact-driven initiatives that we establish post-construction.
Some communities are passing laws to ban new renewable energy projects, while others are enacting laws to prevent local governments from doing so. How is your team navigating these challenges and working with communities to advance the clean energy transition? How do you address concerns or resistance to clean energy projects within these communities?
Engaging with communities allows the developer to understand the community’s philosophy and interest in large scale infrastructure projects. This engagement highlights the various roles within the community and how the local government is structured. By meeting people where they are—whether at townhalls, community fairs, or school meetings—we gain insight into what matters to the community and explore possibilities for collaboration.
I don't view moratoriums and ordinances for renewable energy projects as roadblocks. Instead, moratoriums can provide small governments with the opportunity to establish guidelines that ensure projects meet community needs. Outright bans on infrastructure projects can be complex, but we remain hopeful that our team can meet with the community leaders, build relationships and try to have conversations about infrastructure projects respectfully. Successful solar projects and the economic benefits that come from such projects in neighboring communities may help to lessen concerns from communities that are debating whether to pass an ordinance against solar projects or not.
Ultimately, our goal is to show communities that we support their self-determination and aim to be a long-term, reliable partner.
How do you build and maintain strong relationships with the communities where Sol Systems’ projects are located? What are the benefits of these partnerships in addressing challenges facing both the industry and these communities? What challenges have you encountered in fostering these partnerships, and how have you overcome them?
Building strong relationships begins with understanding the community's values and priorities. For example, on a recent trip to Kentucky, I met with community members and local government officials to learn about their community values—agricultural programs, education, and energy mix to name a few. Rather than imposing an agenda, we work with community contacts to identify and support initiatives that align with local values. These early connections are crucial, and their impact endures beyond project completion. Communities recognize that we listened to their needs and delivered on our commitments, which fosters trust and long-term collaboration. Once the project is complete, those early connections prevail.
We recognize there can be some opposition to renewable energy projects in any community, particularly when driven by misinformation. As we build partnerships and become a trusted advisor in the community, we want to provide them with the education needed to counter the misinformation. Our role is to empower communities with facts and build lasting trust.
With economic concerns being top of mind for many Americans, are there any policy changes or industry trends influencing your team’s community engagement approach? Do any of these give you confidence that authentic engagement can lead to economic development and land stewardship, addressing community concerns about utility-scale projects while ensuring benefits for all and leaving no communities behind?
The energy communities’ provision in the Inflation Reduction Act (IRA) is a tremendous opportunity to maximize the project impacts. Since the legislation passed two years ago, we have worked to leverage its benefits in our communities. Understanding the intricacies of the IRA and engaging in open dialogue with local officials allows us to maximize community benefits. On a recent trip to Champaign, IL, the Economic Development Director, expressed interest in funding to build out transmission in the state which would create new jobs and economic benefits for the community. Our Infrastructure + Impact approach ensures that solar projects benefit communities that are disproportionately affected by climate change. This includes initiatives related to the importance of diligent land stewardship, pollinator-friendly solar certifications, and research into the benefits of native perennial vegetation around solar project sites. Recently, Sol Systems executed an agreement with American Farmland Trust (AFT) that focuses on Smart SolarSM initiatives. Smart SolarSM, a concept service created by AFT, outlines principles to minimize the environmental impacts of solar developments while enhancing ecosystem-focused practices at solar sites. Over 2,000 acres of land from the projects that Sol Systems will develop in the next four years will participate in a research partnership with AFT to test soil health and assess the impact of beneficial vegetation.
The mission of the IRA, the growing momentum in the renewable energy sector and the interest in building deep community partnerships gives me confidence that while economic concerns remain top of mind and should be important to many Americans, we have the tools to build a clean energy economy that works for everyone.
Whether it's Illinois or Louisiana or anywhere else, we prioritize these types of partnerships and want to make sure that we return the land in the best condition possible. The IRA, the renewable energy sector's momentum, and our commitment to deep community partnerships instill confidence that we can build a clean energy economy that benefits everyone while addressing economic concerns.
Is there anything important we haven't discussed that you'd like to share with us?
Reflecting on the industry since I joined in 2010, I am continually inspired by the rapid evolution and growth in community engagement practices. Over the past decade, community engagement has become a priority with most development firms and seeing that evolution has been rewarding. We strive to build great projects and strong relationships, which help mitigate community opposition or navigate regulatory challenges.
We also aim to collaborate effectively with communities, ensuring that our efforts are valued and that we respect and integrate their values. At Sol, the emphasis on community engagement is evident in how our team’s contributions are appreciated across the company. This affirmation of our work demonstrates Sol Systems’ commitment to building meaningful relationships and identifying pathways for progress.
Eco-Friendly Energy: The Future of Solar with Sol Systems and American Farmland Trust (AFT)
Insights |
By Juliana Isaac
"Impact through Infrastructure" encapsulates Sol Systems’ dedication to fostering a sustainable energy future, one that embraces clean energy, supports communities, and promotes responsible stewardship of the land. Over the years, Sol Systems has integrated ecological restoration into our solar energy projects, demonstrating our commitment to environmental sustainability.
In our latest edition of the “Infrastructure + Impact” Spotlight Series, we highlight our collaboration with the American Farmland Trust (AFT). This national organization adopts a holistic approach to agriculture, working to propagate environmentally sound farming practices across millions of acres. The renewable energy sector is increasingly recognizing the importance of diligent land stewardship, evidenced by emerging initiatives such as pollinator-friendly solar certifications, research into the benefits of native perennial vegetation, and land stewardship seminars at industry conferences. These efforts are gaining momentum across various scales, from small installations to utility-scale portfolios.
Strategic Collaborations and Smart Solar Initiatives
This year marked a significant milestone with the execution of a Sponsorship Agreement between Sol Systems and AFT, focusing on “Smart SolarSM” initiatives. “Smart Solar”, a concept service marked by AFT, outlines principles to minimize the environmental impacts of solar developments while
enhancing ecosystem-focused practices at solar sites. AFT’s four-decade commitment to sustainable agriculture and collaborative work with farmers and ranchers forms a solid foundation for this partnership. Together, Sol Systems and AFT are set to collaborate on land stewardship and conservation best practices across Sol Systems’ utility-scale portfolio, fostering sustainable renewable energy growth.
A Comprehensive Approach to Conservation Agriculture
AFT’s method involves a comprehensive, holistic focus on conserving agricultural land, promoting eco-friendly farming techniques, and supporting the farmers and ranchers at the forefront. AFT is committed to supporting rural communities where renewable energy projects are established, aiming to forge innovative partnerships between these communities and the renewable energy sector.
Innovative Models for Community and Ecosystem Impact
Sol Systems is at the forefront of developing new models in the United States that ensure solar projects benefit under-resourced communities, those disproportionately affected by climate change, and the ecosystems surrounding the projects. As the industry continues to embrace conservation-focused initiatives, the importance of quantifying the ecological restoration outcomes at solar projects becomes crucial. Over the next four years, Sol Systems will develop utility-scale sites across the Midwest; over 2,000 acres of land from these projects will participate in a research partnership with AFT aimed at testing soil health and assessing the impact of beneficial vegetation. Starting in spring 2024, our teams will embark on a four-year journey to monitor and analyze soil health across various project sites. The data gathered will not only quantify the ecological benefits but also serve as a preliminary guide to the viability of innovative practices like crop production beneath utility-scale solar projects. This research aims to foster smarter, more conscious development and enhance community engagement with these projects.
Exploring Agrivoltaics with AFT
Our collaboration with AFT extends beyond subsurface soil health; it is above ground, too. The teams are venturing into a first-of-its-kind agrivoltaics installation project. Agrivoltaics, or the co-location of agriculture and solar, is gaining traction across the industry as one way to promote farm viability and farmland access in parallel with clean energy development. One such project in Illinois will explore the co-location of agriculture and solar energy using a portion of a utility-scale site to cultivate Kernza®, a perennial grain known for its deep roots that enhance soil stability and nutrition. This agrivoltaics initiative aims to validate the concept for both farmers and the solar industry, demonstrating the potential for mutual benefits and sustainable partnerships.
A Vision for a Smarter, Greener Energy World
Through these initiatives, Sol Systems and AFT aspire to demonstrate that solar energy and land stewardship can and should coexist to promote ecosystem health from the ground up. Our partnership exemplifies the essence of “Smart Solar” and “Infrastructure + Impact”, merging innovation, community engagement, and environmental benefits. To learn more about AFT’s Smart Solar initiatives, please visit AFT’s website at https://farmland.org/solar/.
Good Intentions, Bad Policy, and the Threat to the Clean Energy Transition
Insights |
By The Sol Systems Team
Why Additionality Should Not Be a Requirement for Corporate Clean Energy Goals
Electricity generation accounts for 25% of global CO₂ emissions, and addressing this through a transition to renewable energy sources - like solar or wind - is critical to solving the climate crisis. The good news is that corporations are stepping up to procure massive amounts of clean energy to minimize their carbon footprints, documented by retiring renewable energy certificates (RECs). The World Resource Institute (WRI) establishes the global ‘rules of the road’ for emissions accounting. But those rules – specifically its Scope 2 Guidance on indirect emissions from purchased electricity, steam, heat, or cooling – are under review to be changed, and the consequences could be catastrophic to the progress of the clean energy transition.
What’s at Stake
These new proposed rules will make accounting for voluntary purchases of renewable energy, specifically of unbundled RECs, much more challenging for corporations and threatens REC markets that are vital for the transition to renewable energy. These new rules, while well-intended, will actually slow down clean energy procurement at a time when we need it most.
Perspective from the Practitioners
Clean energy practitioners who develop, finance, build, operate, invest in, or purchase power from renewable energy projects widely agree that a more difficult process for corporations to make emissions claims is not a path forward that will bolster clean energy procurement - in fact, it will set us backward. In contrast to the proposed changes, the following principles represent a consensus among most practitioners – and the evidence included in our detailed white paper offers practical examples and explanations for why these principles should be adopted:
Market-Based Instruments are Criticaland Enabled by REC Markets: Market-based instruments, such as Virtual Power Purchase Agreements (VPPAs), or contracts that ensure the long-term financial backing of clean energy projects, and unbundled RECs, are critical to enable and motivate corporations to meet GHG emissions accounting requirements. REC markets are critical enablers for voluntary procurement. The new rules consider eliminating market-based accounting; this would discourage voluntary procurement of renewable energy.
An Additionality Requirement is Not Reasonable: A binary ‘additionality test’, or the requirement of clean energy projects to be new versus existing ones in order to “count” (as some academics propose), should not be a prerequisite for making an emissions reduction claim but could voluntarily be disclosed alongside such claim. Corporations simply won’t be able to buy as many ‘additional’ RECs, and the clean energy industry won’t be able to finance and build as many projects. Requiring additionality is a mistake and would be detrimental to the clean energy transition.
Time and Location Data Tracking is Critical: Time and location data tracking associated with customer load and renewable energy generation is essential to match, measure, and account for the underlying emissions impacts. There is broad consensus for working towards adapting GHG accounting guidance for emissionality, which reflects the avoided emissions. Renewable energy markets, particularly REC markets, will ultimately better reflect underlying carbon intensity and direct clean energy investments and procurements into carbon-intense markets where emissions reductions are most needed. Many of our recommendations to integrate emissionality into REC markets and Scope 2 requirements, shared in 2023 in our perspective on “Reimagining REC Markets,” are now being discussed for implementation.
A Better Path Forward
Continuing progress requires collaboration. We call on WRI to emphasize the practical evidence from clean energy buyers, developers, financiers, and our industry associations in the new accounting guidance so these rules support (not prohibit) the clean energy transition. We also call on the clean energy practitioner community to continue actively engaging in this critical debate and sharing their insights.
We recommend accounting frameworks and policies that support:
Emissions reduction claims that ultimately integrate carbon intensity into any reporting; corporations should be given the option of how to report depending on their capabilities
Flexibility of differentiating the impact of their emissions reduction claims through a hierarchy of voluntary contractual instruments under market-based accounting to bolster action
Reframing ‘additionality’ and ‘emissionality’ as a disclosure feature to allow for transparency and flexibility while driving ambition.
We all want a sustainable energy future that drastically reduces carbon emissions. Carbon accounting is not a purpose in itself – global emissions reduction is. To get there, we need conducive accounting frameworks and supportive policies, not prohibitive ones, to motivate the clean energy transition for diverse corporations that can provide immediate impact toward reaching our collective climate goals.
