REC’s are the non-tangible energy commodities that generate 1MWh of electricity from eligible renewable energy resource, are tradable and was fed into the shared system of power lines which transport energy.
CREC introduced REC mechanism to ease the purchase of renewable energy by the state utilities and obligated entities , including the states which are not well endowed with RE sources. REC framework seeks to create a national level market for renewable generators to recover their cost.
There are some silent features of REC:

Rec Denomination 1MWh
Validity 1095 Days after issuance
Categories
  • Solar REC
  • Non-Solar REC
Trading Platform Power Exchanges Only
Banking Not Allowed
Borrowing Not Allowed
Transfer Type Single Transfer only, repeated trade of the same certificate is not possible
Penalty for ‘Forbearance’ Price (Maximum Price) – Non-compliance
Price Guarantee Through ‘Floor’ Price (Minimum Price)