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Owning RECs is the only internationally recognised way for a business to legally claim they are using “green” power — even while remaining connected to the national utility grid. Recognised by the world’s leading sustainability frameworks, RECs are vital for transparent sustainability reporting and advancing renewable energy and net-zero commitments.
1 MWh (1,000 kWh) = 1 REC
Active 12-Month Cycle
Certified ISO 9001:2015 quality management systems
Every solar installation generates two distinct assets simultaneously: the physical electricity that powers your operations, and Renewable Energy Certificates (RECs) — internationally recognised digital credentials that verify your energy came from a clean, renewable source.
Each REC represents 1 MWh (1,000 kWh) of electricity generated from a certified renewable energy source.
How RECs Work
Rooftop Solar Energy |
RECs (The Bonus Asset) |
|
|---|---|---|
| Nature | Physical electricity consumed on-site in real time | Digital certificates attesting to your renewable energy generation |
| Financial Benefit | Reduces your daytime TNB utility expenditure | Monetisable on the open market for additional revenue |
| Business Impact | Lowers immediate operational costs | Creates a passive, recurring income stream |
Global supply chains are rapidly shifting. Major international buyers — particularly in the EU, US, and Japan — are now mandating verified renewable energy usage from their suppliers as a condition of doing business. Regulations such as the EU Carbon Border Adjustment Mechanism (CBAM) and Scope 3 emissions reporting requirements under frameworks like the GHG Protocol mean that your customers’ sustainability targets increasingly depend on what your facility runs on.
Holding RECs is no longer a competitive advantage — for export-oriented manufacturers, it is becoming a baseline requirement.
Meet growing renewable energy requirements from global buyers and export markets
Support compliance with international sustainability and carbon reporting standards
Strengthen business credibility and competitiveness in global supply chains
Prepare your business for future regulations and long-term sustainability goals
Meet strict sustainability reporting requirements for Bursa Malaysia. With verified RECs, your Scope 2 emissions reporting is accurate, defensible, and audit-ready — reducing regulatory risk as Malaysia's sustainability disclosure obligations tighten each year.
Secure "Preferred Vendor" status for multinational corporations (MNCs) that require green-certified partners. RECs provide the verified proof that procurement teams and sustainability auditors demand.
Position your brand as a leader in Malaysia's transition to a low-carbon economy. Certified green credentials differentiate you in competitive tenders, stakeholder communications, and public-facing sustainability claims.
Understand the essential insights, benefits, and considerations behind renewable energy certification — helping businesses make informed decisions toward a more sustainable future.
You do not need to consume the actual electrons from your solar panels to hold RECs. A company in KL can purchase RECs from a solar farm in Kedah and legitimately claim renewable energy usage — this is the globally accepted standard.
Under the I-REC standard, certificates must be issued and retired within 12 months of the energy generation date. Unused RECs that lapse carry no residual value — timely registration and monetisation is essential.
Certificate values are driven by corporate sustainability commitments, regulatory pressure, and buyer competition. As ESG mandates intensify globally, REC demand — and pricing — is trending upward.
Once a REC is retired under your company’s name, it is permanently removed from the market. No other entity can claim the same unit of green energy — this integrity mechanism is what gives RECs their legal and commercial credibility.
If your system is registered with the appropriate certifying body, RECs are issued monthly as your system generates electricity. Without registration, these certificates are forfeited entirely.
Each solar system we design and install generates RECs alongside electricity — an asset many businesses overlook entirely. We ensure you capture its full value through one of two pathways:
OPTION A
OPTION B
Solar system generates renewable electricity.
Your solar PV system produces clean renewable electricity that is either used onsite or exported to the grid.
The environmental attributes of this renewable energy become eligible for REC creation.
Yongyang manages the REC process:
We ensure the process is compliant, traceable, and audit-ready under approved REC frameworks such as I-REC.
Verified renewable generation becomes RECs.
Generation data is verified before REC issuance. For every 1 MWh of verified renewable electricity generated, 1 REC is issued with a unique serial number.
Each REC represents the environmental benefits of renewable energy generation.
Businesses can monetize or use RECs for sustainability claims.
REC owners may:
Once retired, the REC is permanently removed from the registry and cannot be claimed again.
Particularly in electronics, gloves, furniture, and food processing facing ESG procurement scrutiny
Especially to the EU, US, UK, and Japan where supply chain carbon disclosure is tightening
Including GRI, TCFD, or Bursa Malaysia's sustainability framework
Seeking green building certifications such as GreenRE, GBI, or LEED
As Malaysia advances its carbon market agenda under the Bursa Carbon Exchange (BCX)