Global Renewable Energy Certificate (REC) Market Size is valued at USD 25.3 Bn in 2024 and is predicted to reach USD 69.1 Bn by the year 2034 at a 10.8% CAGR during the forecast period for 2025 to 2034.
Renewable Energy Certificate (REC) Market Size, Share & Trends Analysis Report By Capacity (Up to 1,000 KWH, Above 5,000 KWH), By Energy Type (Solar Power, Wind Power, Hydropower, Biomass, Others), By End-use (Compliance, Voluntary), by Region, And by Segment Forecasts, 2025 to 2034.
A Renewable Energy Certificate (REC) is a significant certificate representing the environmental and social benefits of one megawatt-hour of electricity generated from renewable sources like wind, solar, or hydro. RECs allow buyers, such as businesses or utilities, to claim renewable energy use without directly consuming it, supporting clean energy development and tracking production through a market-based system. This market promotes the growth and integration of renewable energy into the electricity grid by allowing businesses and people to buy RECs, meet regulatory requirements, and accomplish sustainability goals. The demand for renewable natural gas (RNG) certificates is rising in the renewable energy certificate market. Similar to solar and wind energy, RNG has positive environmental effects.
The addition of RNG certificates to the REC market is anticipated to increase the supply of renewable qualities in order to satisfy the rising demand for sustainable energy. Furthermore, the demand for RECs is anticipated to rise sharply as more green data centres switch to renewable energy sources. Large data centres, in particular, use a lot of electricity, and their dedication to renewable energy might lead to significant REC purchases. One of the main issues is that different regions have varied regulations, which makes it harder to conduct business in the market and makes investors uneasy.
Furthermore, the market is hindered by a lack of consumer knowledge and comprehension of renewable energy certificates, which restricts demand and market penetration. On the other hand, areas with recently set renewable energy objectives and laws are seeing an increase in market opportunities. Businesses that can provide scalable and creative certificate solutions stand a good chance of gaining a sizable portion of the market.
Some Major Key Players In The Renewable Energy Certificate (REC) Market:
The Renewable Energy Certificate (REC) market is segmented based on capacity, energy type, and end-use. The capacity segment is further segmented into up to 1,000 KWH, 1,001-5,000 KWH, and above 5,000 KWH. By energy type, the market is segmented into solar power, wind power, hydropower, biomass, and Others. By end-use, the market is segmented into compliance and voluntary.
The solar power category is expected to hold a major global market share in 2024. Solar power is more affordable than conventional fossil fuel-based electricity generation thanks to improvements in solar panel efficiency, economies of scale, and manufacturing innovations. This has caused a global increase in the installation of solar energy projects since solar has grown in popularity as a way for utilities, companies, and homeowners to lower their energy expenses and carbon impact. Furthermore, encouraging government initiatives, including tax breaks, renewable energy requirements, and solar energy objectives, have supported the expansion of the solar energy market.
The compliance category dominates the market for renewable energy certificates since major industrial businesses purchase renewable energy credits to offset their greenhouse gas emissions. For major energy utility businesses worldwide to be eligible for some government policies to offset their carbon footprint, they must have a specific percentage of renewable energy credits. Large manufacturing corporations like Tesla, Microsoft, Google, and others have a minimal requirement to obtain renewable energy credits in order to offset their greenhouse gas emissions, particularly in the United States. Furthermore, the government's policies to mitigate greenhouse gas emissions and the rise in energy consumption are two other important factors driving market expansion.
North America Energy Certificate (REC) market is expected to register the highest market share in revenue in the near future because of its established policy frameworks, robust corporate sustainability pledges, quick expansion of renewable energy capacity, encouraging government incentives, and developed trading infrastructure. Significant demand for RECs has been created by the region's implementation of strong renewable portfolio standards and other regulations that encourage utility-scale buying of renewable energy. Furthermore, a number of major companies with regional headquarters have committed to aggressive targets for emissions reduction and renewable energy, which has increased demand for voluntary RECs.
In addition, Asia Pacific is projected to grow rapidly in the global Renewable Energy Certificate (REC) market. Renewable energy certificates are easily traded non-tangible energy commodities in a nation. The rising demand for green or renewable power has further accelerated the market expansion in the region. The region is known for its numerous high-tech businesses, each of which has significant energy needs that encourage the growth of renewable energy sources.
| Report Attribute | Specifications |
| Market Size Value In 2024 | USD 25.3 Bn |
| Revenue Forecast In 2034 | USD 69.1 Bn |
| Growth Rate CAGR | CAGR of 10.8% from 2025 to 2034 |
| Quantitative Units | Representation of revenue in US$ Million and CAGR from 2025 to 2034 |
| Historic Year | 2021 to 2024 |
| Forecast Year | 2025-2034 |
| Report Coverage | The forecast of revenue, the position of the company, the competitive market structure, growth prospects, and trends |
| Segments Covered | By Capacity, Energy Type, And End-Use |
| Regional Scope | North America; Europe; Asia Pacific; Latin America; Middle East & Africa |
| Country Scope | U.S.; Canada; U.K.; Germany; China; India; Japan; Brazil; Mexico; France; Italy; Spain; South East Asia; South Korea |
| Competitive Landscape | AFS, Climate Impact Partners, 3Degrees, Inc, Ecohz, REDEX, Shell Energy, ENGIE, Evolugen, EDF Trading Limited, GRID-INDIA, Enel Spa, Statkraft, Sterling Planet, South Pole, and STX Group. |
| Customization Scope | Free customization report with the procurement of the report and modifications to the regional and segment scope. Particular Geographic competitive landscape. |
| Pricing And Available Payment Methods | Explore pricing alternatives that are customized to your particular study requirements. |
Segmentation of Renewable Energy Certificate (REC) Market-
Renewable Energy Certificate (REC) Market By Capacity-
Renewable Energy Certificate (REC) Market By Energy Type-
Renewable Energy Certificate (REC) Market By End-use-
Renewable Energy Certificate (REC) Market By Region-
North America-
Europe-
Asia-Pacific-
Latin America-
Middle East & Africa-
This study employed a multi-step, mixed-method research approach that integrates:
This approach ensures a balanced and validated understanding of both macro- and micro-level market factors influencing the market.
Secondary research for this study involved the collection, review, and analysis of publicly available and paid data sources to build the initial fact base, understand historical market behaviour, identify data gaps, and refine the hypotheses for primary research.
Secondary data for the market study was gathered from multiple credible sources, including:
These sources were used to compile historical data, market volumes/prices, industry trends, technological developments, and competitive insights.
Primary research was conducted to validate secondary data, understand real-time market dynamics, capture price points and adoption trends, and verify the assumptions used in the market modelling.
Primary interviews for this study involved:
Interviews were conducted via:
Primary insights were incorporated into demand modelling, pricing analysis, technology evaluation, and market share estimation.
All collected data were processed and normalized to ensure consistency and comparability across regions and time frames.
The data validation process included:
This ensured that the dataset used for modelling was clean, robust, and reliable.
The bottom-up approach involved aggregating segment-level data, such as:
This method was primarily used when detailed micro-level market data were available.
The top-down approach used macro-level indicators:
This approach was used for segments where granular data were limited or inconsistent.
To ensure accuracy, a triangulated hybrid model was used. This included:
This multi-angle validation yielded the final market size.
Market forecasts were developed using a combination of time-series modelling, adoption curve analysis, and driver-based forecasting tools.
Given inherent uncertainties, three scenarios were constructed:
Sensitivity testing was conducted on key variables, including pricing, demand elasticity, and regional adoption.