Frequently Asked Questions

The AREC Market is a software platform where Customers can make fixed-price offers to purchase unbundled Additionality RECs from Zettawatts. Zettawatts then offers to buy the first 5 or 10 years of RECs at a fixed price from renewable project developers and deliver those RECs to the Customer once the project is operational.

Additionality RECs are voluntary RECs with two attributes: a forward financial purchase commitment over the initial years of a new project AND is made prior to the project's actual commercial operating date. Under this definition, PPAs, VPPAs, and Onsite renewables all provide bundled ARECs today (they are not called ARECs but naturally feature Additionality). ARECs meet the GHG Protocol test for additionality both for Timing (prior to operation) and Financial Impact (contributing to the ability for the project to get financed). Zettawatts is creating the first market for unbundled ARECs to allow customers to buy just the RECs without the underlying power. Zettawatts is developing the market to purchase unbundled Additionality RECs as a way for commercial buyers to get the benefit of Additionality without the complexity and risk of PPAs and VPPAs.

Additionality RECs are based on the same underlying RECs currently generated by renewable projects. What makes ARECs better and more valuable is that they provide an advanced financial commitment for projects in the first few years of commercial operation. For suppliers, this increases the viability of new projects and potentially lowers financing costs as a subsidy. For buyers, unbundled ARECs provide a way to demonstrate an investment in decarbonizing the grid commensurate with the electricity they use that drives their Scope 2 emissions. Further, they can purchase at a fixed price and a term length that matches their business model. The Additionality attribute provides buyers with a higher quality environmental marketing claim since it demonstrates that they have committed to purchase in advance in order to support new projects.

Many corporations have set ambitious carbon reduction targets with a significant portion of their Scope 2 emissions coming from grid electricity generation. Buying unbundled RECs and retiring them doesn’t directly spur the development of new projects and as a result, doesn’t reduce the emissions caused by electricity generation. Simply put, ARECs are a forward commitment to buy RECs from new projects allowing buyers to make a more impactful green energy marketing claim.

SREC are regulated in specific states for solar projects built in those states to meet renewable portfolio standards for utilities to grow solar development. ARECs serve the voluntary market for Customers looking to invest in new renewable projects as part of managing their Scope 2 emissions.

The Green House Gas Protocol defines a set of example "tests" for additionality. Zettawatts' is focused on meeting three of the tests - Legal, Regulatory or Institutional, Investment and Timing. Legal, Regulatory or Institutional by meeting various standards and framework definitions like BERDO or NY Local Law 97. Investment by participating directly in the longterm financing of projects as part of the revenue stream. Timing by entering into agreements in advance of the Commercial Operating Date of new projects as both a buyer and a seller. We will continue to refine the definition as it becomes less ambiguous or as Customers request different attributes like location specific projects or time-of-day generation.