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Renewable Energy Certificate (REC)

Earn Beyond Energy Savings: The Power of RECs

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

What Are RECs

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

1

MWh

Clean Electricity Generated

1

REC

Certificate Issued
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

Why RECs Matter More Than Ever

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

Impact Beyond Operational Costs Reduction

ESG Compliance

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.

Supply Chain Leadership

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.

Brand Authority

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.

Key Facts to Know

Understand the essential insights, benefits, and considerations behind renewable energy certification — helping businesses make informed decisions toward a more sustainable future.

RECs and Physical Electricity are Independent

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.

Maximising the Value of Your RECs

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

Retain Your RECs
Use RECs as legally verified, audit-ready proof that your operations run on 100% renewable energy. Essential for passing international sustainability audits such as RE100, CDP, and ISO 14064, and securing contracts with multinational corporations.

OPTION B

Sell Your RECs
If green credentials are not an immediate priority, list and sell your RECs to verified global buyers through established certificate markets — turning your solar system into a dual revenue stream.

How the REC Process Works

Who Should Prioritise RECs

Manufacturers Supplying to MNCs

Particularly in electronics, gloves, furniture, and food processing facing ESG procurement scrutiny

Companies With International Export Markets

Especially to the EU, US, UK, and Japan where supply chain carbon disclosure is tightening

Businesses Pursuing ESG Ratings or Sustainability Reporting

Including GRI, TCFD, or Bursa Malaysia's sustainability framework

Property Developers and Commercial Landlords

Seeking green building certifications such as GreenRE, GBI, or LEED

Any Business Future-proofing Against Carbon Pricing

As Malaysia advances its carbon market agenda under the Bursa Carbon Exchange (BCX)

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