How I-RECs Work: Issuing, Tracking, and Redeeming

An International Renewable Energy Certificate (I-REC) represents 1 megawatt-hour of renewable electricity that has been generated and added to the grid. It serves as proof of renewable energy use and supports claims around sustainability and emissions reduction. Behind each certificate is a structured process that ensures transparency, traceability, and credibility. From initial issuance by accredited entities to the final act of redemption by an end user, each step is carefully tracked in the official I-REC registry. This guide outlines how I-RECs move through that system, from generation and verification to ownership transfer and retirement.

Verification and Eligibility

The I-REC journey begins with the registration of a renewable energy production device (e.g. a solar park, wind farm, or hydroelectric plant) with an accredited Issuer. Project owners, or their authorized agents, must submit key details about the facility. These include the device's location, technology type, capacity, commissioning date, and evidence that it produces renewable electricity. The Issuer then reviews this information to assess eligibility and confirm that the plant meets the I-REC Standard requirements. Registering a production device incurs a standard fee. Once the device is approved and generating power, the owner submits generation data to the Issuer on a regular basis. This information may be independently verified to maintain trust in the system. Verification can include reviewing meter readings, comparing data with grid operator records, or engaging third-party auditors. Some Issuers require monthly generation reports signed by a licensed verifier, while others may request direct data from a SCADA system. These checks ensure that the electricity was genuinely produced and has not been claimed under another certificate system.

I-REC Issuance

Once the data has been validated, the Issuer issues certificates into the official I-REC registry. These certificates are credited to the account of the registered device owner or their designated representative. In the I-REC system, this account holder is referred to as the “Registrant.” At this point, the I-RECs serve as traceable proof of renewable energy generation.

I-REC Tracking

Once I-RECs are issued, they can be transferred between registry account holders, including traders, intermediaries, and eventually the end user. The I-REC registry acts as the official tracking system, recording each transfer of ownership from the original producer to the final certificate holder. Every I-REC is tagged with key details such as the generation technology, location, and date. These attributes stay attached to the certificate throughout its lifecycle. The registry's centralized structure and unique certificate IDs make it impossible for an I-REC to be duplicated or double-sold. Only one entity can hold a given certificate at any point in time. This chain-of-custody tracking provides buyers with full transparency. Whether certificates are traded through a marketplace or via bilateral contracts, the registry guarantees that each I-REC represents a verified unit of renewable electricity that hasn't been claimed elsewhere.

Redemption

The final step in the I-REC lifecycle is redemption, also known as retirement. When the certificate is officially consumed on behalf of an end user it is redeemed. This takes place within the I-REC registry, where the certificate is moved into a designated redemption account. Once redeemed, the certificate is locked and can no longer be transferred. Redemption is what gives a buyer the right to claim the environmental benefits of the associated renewable electricity. For example, a company that purchases and redeems 1,000 I-RECs can credibly claim the use of 1,000 megawatt-hours of renewable energy. A formal redemption statement is issued to document the claim. These redemption certificates typically include details such as certificate IDs and the generation source. They also contain a verification code, which is often provided as a QR code or unique key. This code can be checked directly in the registry to confirm authenticity. By tying renewable energy claims to the redemption certificates the system guarantees that each MWh of green power is only claimed once. CnerG is integrated with Evident, the official operator of the I-REC registry, allowing clients to redeem certificates directly through our platform.

Why It Matters

This end-to-end system forms the backbone of credible renewable energy claims in global markets. I-RECs enable companies in regions without local certificate systems to participate in the energy transition. As I-REC demand continues to grow, they remain a trusted, internationally recognized mechanism for verifying and claiming renewable electricity use.

Adoption and Impact

The use of I-RECs has grown significantly in recent years, with rising demand from companies seeking credible ways to track and claim renewable electricity use. For deeper insights, including country-by-country trends and annual growth, download our I-REC 2024 Market Report.