Here at Sunworx, we have a lot of customers who are confused with the government's REC's.
REC stand for Renewable Energy Certificates. This occurs when solar panels are purchased and are mounted onto a system that is producing green power power. This is either by power stations or individual fuel based generators.
RECs are generally the certificates that the federal government issues out to cover potential carbon savings of that system. This also acts as an incentive to owners of small scale solar power systems - like home owners.
To calculate it, the number of certificates issued against the first 1.5 kilowatts of solar panels installed would be multiplied and this would make a significant difference in the overall cost of the system. Owners usually sign over RECs to the solar installers or suppliers in exchange for a discount on the purchase price of the system.