Global Renewable Energy Certificate Market Size, Share, Statistics Analysis Report By Energy Type (Solar Energy, Wind power, Hydro-electric power, Gas power), By Capacity (0-1,000KWH, 1,100-5,000KWH, More than 5,000KWH), By End Use (Voluntary, Compliance) , By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast: 2025-2034

Report Overview

The Global Renewable Energy Certificate Market size is expected to be worth around USD 50.5 Bn by 2034, from USD 5.6 Bn in 2024, growing at a CAGR of 24.6% during the forecast period from 2025 to 2034.

Renewable Energy Certificates (RECs) are tradable commodities that certify the generation of one megawatt-hour (MWh) of electricity from renewable sources like wind, solar, hydro, and biomass. They play a key role in encouraging renewable energy adoption by providing financial incentives to producers, helping companies and utilities meet renewable energy goals. RECs ensure that consumers can verify the environmental benefits of their energy consumption while supporting the shift to a low-carbon economy.

The growth of the renewable energy certificate market is driven by significant investments in renewable energy infrastructure, the increasing demand for cleaner energy, and stronger government regulations on carbon emissions. This expansion is fueled by global efforts to decarbonize, the rise of corporate sustainability initiatives, and tightening emission regulations. A major contributor to the REC market’s growth is the surge in renewable energy investments, with USD 370 billion invested globally in 2023. Solar and wind energy have accounted for over 50% of this investment, highlighting the growing importance of these sectors.

The demand for RECs is primarily driven by corporate sustainability commitments, particularly as businesses strive to reduce their carbon footprints and achieve net-zero emissions. Many companies, especially in the tech and manufacturing sectors, are adopting renewable energy strategies to meet their environmental, social, and governance (ESG) targets. Google and Microsoft, for example, have pledged to run entirely on renewable energy, further boosting the demand for RECs.

Government policies significantly shape Renewable Energy Certificate (REC) markets by establishing regulatory frameworks that drive demand, influence pricing, and dictate market dynamics. In India, the Central Electricity Regulatory Commission (CERC) introduced RECs in 2010 to enforce Renewable Purchase Obligations (RPOs), mandating states to procure 24% of their grid capacity from renewables by 2023

Key Takeaways

• Renewable Energy Certificate Market size is expected to be worth around USD 50.5 Bn by 2034, from USD 5.6 Bn in 2024, growing at a CAGR of 24.6%.
• Solar Energy held a dominant market position, capturing more than a 67.2% share.
• 1,100-5,000 KWH capacity segment held a dominant market position, capturing more than a 51.2% share.
• Compliance held a dominant market position, capturing more than a 62.1% share.
• North America remains the dominant region in the Renewable Energy Certificate (REC) market, holding a substantial share of 42.2%, equivalent to approximately 2.4 billion USD.

Key Statistics

• I-REC(E) Global Issuance (2023): 283 million certificates issued, representing 283 TWh of renewable energy, showing a 42% year-on-year (YoY) increase in issuance.
• I-REC(E) Redemptions (2023): 176 million certificates redeemed, equaling 176 TWh of energy, marking an 81% YoY increase in REC redemption activity.
• India (FY 2024): 13.85 million RECs transacted on Indian power exchanges, demonstrating active participation in the renewable energy certificate market in India.
• Corporate Allocation: For a total consumption of 50,000 kWh, 5,000 kWh is from on-site renewables, 20,000 kWh from off-site RECs, ensuring 50% renewable share.
• Product-Specific Claims: 50,000 kg of a product labeled as 100% renewable using allocated RECs, ensuring the product’s carbon-neutral or renewable status.
• Unit Equivalence: One REC represents the generation of one megawatt-hour (MWh) of renewable energy, serving as proof of clean energy produced.
• Lifecycle: RECs expire 5 years after generation, ensuring that certificates are redeemed within a reasonable timeframe for meeting renewable energy obligations.
• Infrastructure & Compliance: India’s wind capacity stands at 19,051 MW, contributing significantly to renewable energy generation and REC issuance within the country.
• U.S. States with RPS: 30 U.S. states, along with the District of Columbia, have Renewable Portfolio Standards (RPS), mandating renewable energy procurement from utilities.

By Energy Type

In 2024, Solar Energy held a dominant market position, capturing more than a 67.2% share of the Renewable Energy Certificate (REC) market. This remarkable share is reflective of the growing global push towards cleaner energy sources and the substantial investments being made in solar power infrastructure.

Wind power followed in 2024, securing a significant portion of the market. While not as dominant as solar energy, wind power maintained a steady growth trajectory, driven by increasing installation of wind farms and advancements in turbine technology. This sector continues to gain traction, especially in regions with high wind potential, such as coastal areas.

Hydroelectric power, though a critical player in the renewable energy landscape, accounted for a smaller share in the REC market in 2024. Despite its well-established role in providing large-scale, stable energy production, the hydroelectric segment has faced challenges related to environmental concerns and regulatory hurdles.

Gas power, while not considered fully renewable, plays a crucial role in balancing the grid and providing backup power in the REC market. In 2024, it held a modest portion of the market, with a slow but steady increase expected in 2025.

By Capacity

In 2024, the 1,100-5,000 KWH capacity segment held a dominant market position, capturing more than a 51.2% share of the Renewable Energy Certificate (REC) market. This segment’s strength comes from its ability to cater to a wide range of businesses and industries, particularly medium-sized enterprises that require a balanced energy supply.

The 0-1,000 KWH segment also saw a steady rise in 2024, reflecting the growing interest from small businesses, residential consumers, and local energy initiatives. As more individuals and smaller companies transition to cleaner energy solutions, this segment is expected to continue its gradual growth in the coming years.

The “More than 5,000 KWH” capacity segment, which caters primarily to large-scale industrial and commercial clients, represented a smaller portion of the market in 2024. Although this segment holds significant potential due to the large-scale renewable energy projects being developed globally, its share remains limited by the high capital investment and infrastructure requirements associated with such projects.

By End Use

In 2024, Compliance held a dominant market position, capturing more than a 62.1% share of the Renewable Energy Certificate (REC) market. This large share is driven by the increasing number of regulations and mandates imposed by governments worldwide, requiring organizations to meet specific renewable energy targets. Many businesses, especially those in regulated industries, are under pressure to prove their use of renewable energy to comply with these policies.

The Voluntary segment, although smaller in comparison, also experienced notable growth in 2024. Driven by corporate sustainability initiatives and consumer demand for green practices, more organizations are voluntarily purchasing RECs to offset their carbon emissions. As environmental concerns continue to rise, the voluntary market is expected to grow steadily, but its market share remains significantly lower than that of the Compliance segment.

Key Market Segments

By Energy type

• Solar Energy
• Wind power
• Hydro-electric power
• Gas power

By Capacity

• 0-1,000KWH
• 1,100-5,000KWH
• More than 5,000KWH

By End Use

• Voluntary
• Compliance

Drivers

Government Support and Policies Driving the Growth

One major driving factor behind the growth of Renewable Energy Certificates (RECs) is the robust support from government initiatives and policies. As the world shifts toward cleaner energy sources, governments are increasingly implementing regulations and providing incentives to promote the use of renewable energy. This support plays a crucial role in accelerating the demand for RECs.

Governments worldwide, particularly in the European Union, the United States, and India, are introducing ambitious renewable energy targets. For instance, the U.S. has set a target to achieve a 100% clean energy future by 2050. As part of this, the Biden administration has expanded tax credits for renewable energy projects, including wind, solar, and battery storage systems. Such policies have driven renewable energy adoption and, in turn, the need for RECs to meet energy consumption requirements.

The European Union’s Green Deal and commitment to reaching net-zero emissions by 2050 have also catalyzed the demand for renewable energy and RECs. These initiatives offer long-term stability and financial incentives for businesses and industries to transition toward greener energy options, which include obtaining RECs to demonstrate their renewable energy consumption.

Furthermore, countries like India are integrating RECs into their national renewable energy policy. The Indian government’s Renewable Energy Certificate mechanism allows energy producers to sell RECs to industries, thus providing a significant revenue stream and further incentivizing green energy investments.

Government backing and policies, such as tax incentives, renewable energy targets, and regulations mandating the purchase of RECs, are fueling this market’s rapid growth. With increasing global pressure on industries to meet sustainability goals, RECs are becoming an essential tool in achieving renewable energy targets.

Restraints

High Costs and Financial Challenges in Adopting Renewable Energy Certificates (RECs)

A significant restraining factor for the widespread adoption of Renewable Energy Certificates (RECs) is the high upfront costs associated with transitioning to renewable energy sources. While governments worldwide have introduced policies and incentives to encourage clean energy, the financial burden of implementing renewable energy systems can still be a challenge for many industries, especially for small and medium-sized businesses.

For example, in the food industry, which heavily relies on energy-intensive processes like refrigeration, cooking, and manufacturing, the switch to renewable energy may require considerable investment in solar panels, wind turbines, or other green energy technologies. This can be a daunting financial commitment. The cost of installing solar energy systems for commercial use in the U.S. can range from $50,000 to $500,000, depending on the size of the operation, according to the U.S. Department of Energy. These high costs can create barriers for smaller organizations to invest in renewable energy infrastructure, even though RECs can help offset some costs in the long run.

Additionally, renewable energy technologies are not always available or affordable in certain regions. For example, wind and solar power may not be as effective in areas with less sunlight or wind, making it more difficult for companies to meet their renewable energy obligations through RECs. This regional disparity means that not all businesses are in a position to generate or purchase renewable energy at a competitive price.

While renewable energy adoption is expected to lower costs in the long term, these initial financial challenges can slow down the widespread implementation of RECs. In some cases, businesses may opt to purchase RECs from renewable energy producers instead of investing in their own renewable energy infrastructure, which can add an additional financial burden.

Opportunity

Increasing Corporate Demand for Sustainability Driving REC Growth

One of the most promising growth opportunities for Renewable Energy Certificates (RECs) comes from the rising corporate demand for sustainability. Many large corporations are making bold commitments to reduce their carbon footprints and transition toward cleaner energy sources. This shift is driving the demand for RECs, as businesses seek to prove their environmental credentials and meet renewable energy targets.

For example, leading food companies like Nestlé and Unilever have set ambitious sustainability goals. Nestlé has committed to achieving net-zero emissions by 2050, while Unilever aims to reduce its carbon footprint by 50% by 2030. To meet these targets, both companies are increasingly relying on renewable energy sources, and they purchase RECs to verify their renewable energy consumption. Nestlé sources over 40% of its energy from renewable sources and actively uses RECs to ensure the sustainability of its operations.

Corporate demand for RECs is also being fueled by increasing consumer preferences for environmentally conscious brands. Consumers are becoming more selective about the products they purchase, and they often favor companies that demonstrate a commitment to sustainability. This trend is evident across industries, including food and beverage, where companies like Coca-Cola and PepsiCo have set goals to transition to 100% renewable electricity in their global operations. By purchasing RECs, these companies can certify that their energy consumption comes from renewable sources, thus enhancing their brand image and meeting regulatory requirements.

Government incentives also play a crucial role in promoting this shift. In the U.S., the recent extension of tax credits for solar and wind energy projects has made it more financially feasible for corporations to adopt renewable energy technologies and purchase RECs. This combination of consumer demand, corporate sustainability goals, and supportive government policies is creating a favorable environment for the growth of RECs in the coming years.

Trends

Rise of Green Corporate Procurement Strategies for Renewable Energy Certificates (RECs)

A significant trend in the Renewable Energy Certificates (RECs) market is the growing focus on green corporate procurement strategies. More and more companies, especially in the food and beverage sector, are actively seeking to secure renewable energy through RECs as part of their broader sustainability efforts. This trend is driven by the increasing pressure from consumers, investors, and regulatory bodies for companies to reduce their carbon footprints and contribute to global sustainability targets.

Companies like McDonald’s and Starbucks are at the forefront of this movement. McDonald’s, for example, has committed to sourcing 100% of its energy from renewable sources by 2030. As part of this, the company is leveraging RECs to verify that its energy consumption comes from renewable sources. Starbucks is similarly working towards its sustainability goals, aiming to reduce carbon emissions across its global supply chain. In 2020, Starbucks reported that it had already reduced its carbon emissions by 20% compared to 2015, and it continues to invest in renewable energy certificates to meet its environmental targets.

Government incentives are playing a pivotal role in this trend. In the U.S., the Biden administration has rolled out substantial tax incentives for companies investing in renewable energy projects. The extension of tax credits for solar and wind energy, for instance, has made it more affordable for corporations to buy or produce renewable energy, further encouraging them to obtain RECs as part of their corporate strategies.

The combination of strong corporate sustainability commitments, consumer demand for eco-friendly practices, and supportive government policies is creating a growing market for RECs. Companies are not only using RECs to meet regulatory compliance but are also aligning with broader environmental goals, which can lead to greater corporate reputation and long-term cost savings.

Regional Analysis

In 2024, North America remains the dominant region in the Renewable Energy Certificate (REC) market, holding a substantial share of 42.2%, equivalent to approximately 2.4 billion USD. The region’s growth is primarily driven by stringent renewable energy standards set by both federal and state governments, particularly in the U.S. with its Renewable Portfolio Standards (RPS). States like California, New York, and Texas have been at the forefront, establishing aggressive renewable energy targets that have increased demand for RECs.

Europe follows closely, representing a significant portion of the global market. The European Union’s Renewable Energy Directive, which mandates a renewable energy share, and individual country commitments, such as Germany’s Energiewende (energy transition), have driven REC adoption. Europe’s market is also bolstered by strong consumer demand for sustainable practices and high levels of investment in renewable infrastructure.

In the Asia Pacific region, REC demand is growing rapidly, fueled by countries such as China and India, which are investing heavily in renewable energy to combat air pollution and meet international climate commitments. While the region still lags in comparison to North America and Europe in terms of REC market size, it holds vast potential, with increased renewable energy adoption expected in the coming years.

The Middle East & Africa and Latin America have smaller market shares, but emerging markets in Brazil, South Africa, and the UAE show promise, driven by policy reforms and investment in clean energy infrastructure.

Key Regions and Countries

• • North America
    • US
    • Canada
  • Europe
    • Germany
    • France
    • The UK
    • Spain
    • Italy
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • South Korea
    • India
    • Australia
    • Rest of APAC
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • Middle East & Africa
    • GCC
    • South Africa
    • Rest of MEA

Key Players Analysis

The Renewable Energy Certificate (REC) market is supported by several key players that play a pivotal role in managing, tracking, and certifying renewable energy usage. Notably, Central Electricity Regulatory Commission (CERC) in India, a regulatory body, is central to overseeing REC transactions and ensuring compliance with renewable energy standards.

Similarly, U.S. Environment Protection Agency (EPA) contributes significantly to the market by promoting renewable energy usage and supporting the regulatory framework for RECs in the United States. The Environmental Tracking Network of North America (ETNNA) and Green-e Energy further strengthen the market by providing certification and tracking services to verify renewable energy claims, ensuring transparency in the REC market.

Government agencies like the Defense Logistics Agency Energy (DLA Energy) and General Services Administration (GSA) are also crucial in driving REC adoption through large-scale procurement of renewable energy for federal facilities. Similarly, the Western Area Power Administration and Statkraft, a Norwegian energy company, actively participate in the renewable energy certification process and REC trading.

Ecohz, a renewable energy provider, facilitate global REC procurement, while The Green Certificate Company offers expertise in managing renewable certificates across multiple regions. Collectively, these key players help to establish a standardized, trusted REC marketplace, supporting global efforts to meet sustainability targets and transition to renewable energy.

Top Key Players

• Central Electricity Regulatory Commission
• Defense Logistics Agency Energy
• Ecohz
• Environmental Tracking Network of North America
• General Services Administration
• Green-e Energy
• S. Environment Protection Agency
• Statkraft
• STX Group
• The Green Certificate Company
• U.S. Environment Protection Agency
• Western Area Power Administration

Recent Developments

In 2024, CERC is focused on enhancing the REC framework to support India’s renewable energy targets, especially as the country aims to reach 500 GW of non-fossil fuel capacity by 2030.

In 2024, DLA Energy has committed to increasing its use of renewable energy sources, with a focus on meeting the U.S. federal renewable energy goals, such as sourcing 25% of its energy from renewable sources by 2025.

In 2024, Ecohz has helped its clients, including large multinational companies, acquire more than 1 million RECs annually, contributing to a reduction of over 1 million tons of CO2 emissions.

Report Scope