Energy trading: Renewable energy development

On-site renewable energy is a fantastic investment, but many companies and homeowners have difficulty finding the right project for their particular building structure, location or budget. For example, in urban areas condensed with high-rise buildings, roof top solar panels might only power a small percentage of a building's space and won't make for an ideal investment. On the other hand, sprawling low-rise buildings and residential structures often see a rapid return on investment and years of great financial savings from the same projects. For those who are unable to find an optimal on-site project for their building, a great alternative is to purchase RECs. Also referred to as renewable energy certificates, green tags and renewable energy credits, RECs are tradable commodities that represent proof that 1 megawatt-hour of electricity was generated from an eligible renewable energy resource. While purchasing RECs don't provide the same direct benefits as installing solar panels or a microturbine system, it offers companies and homeowners the opportunity to actively support renewable energy development. Whitney Hoover, LEED GA, is the executive office manager of The New York Palace, New York, N.Y.