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Configure solarRenewable Energy Certificates (RECs) Malaysia
RECs allow Malaysian companies to claim renewable electricity for ESG reporting, Scope 2 emissions, RE100, and CDP disclosures — without installing solar on-site. Buy and retire i-RECs to verifiably demonstrate your green electricity commitment.
What Are Renewable Energy Certificates?
A Renewable Energy Certificate (REC) is a market-based instrument that represents proof that 1 megawatt-hour (MWh) of electricity was generated from a renewable source — solar, wind, hydro, or biomass.
When a solar farm generates electricity, it earns RECs. These certificates can be sold to companies that want to claim renewable electricity usage — even if they receive standard grid electricity. Buying RECs does not change the physical electricity you receive; it gives you the environmental attribute of that renewable generation.
In Malaysia, i-RECs (International RECs) are the primary tradeable form. They are used for ESG reporting, Scope 2 market-based accounting under the GHG Protocol, RE100 compliance, CDP climate disclosures, and supply chain sustainability claims.
1 REC = 1 MWh Renewable Electricity
Each certificate represents exactly one megawatt-hour of verified renewable generation. Buy enough RECs to cover your annual electricity consumption.
No On-Site Installation Required
You do not need rooftop solar or any infrastructure changes. RECs are purchased certificates — administrative procurement only.
Internationally Auditable
i-RECs are tracked in a central registry. When you retire a REC, it is cancelled permanently — preventing double-counting across global supply chains.
Accepted by Major ESG Frameworks
i-RECs satisfy GHG Protocol Scope 2 market-based reporting, RE100 requirements, CDP climate questionnaires, and SBTi renewable energy criteria.
How RECs Work
From renewable electricity generation to auditable ESG claims — the i-REC lifecycle in Malaysia.
Solar Farm Generates
A grid-connected solar farm generates renewable electricity and injects it into the national grid.
RECs Issued by i-REC Registry
For every 1 MWh generated, one REC is issued by an accredited i-REC registry and tracked digitally.
Company Purchases RECs
Your company purchases and retires the RECs equivalent to your electricity consumption or target coverage.
Claims Renewable Energy Usage
Retired RECs provide auditable proof for ESG reports, CDP disclosures, and Scope 2 market-based claims.
Types of RECs in Malaysia
RECs in Malaysia come in two forms — bundled with physical electricity delivery, or unbundled as certificates only.
With Physical Electricity Delivery
Under CRESS or CGPP, the renewable electricity certificate comes bundled with the physical (or financial) electricity supply. The green attribute and the power arrive together as one product.
- Stronger ESG claim — physical delivery
- Available via CRESS and CGPP schemes
- Preferred by RE100 and SBTi frameworks
- Requires larger scale (1 MW+ demand)
Certificates Only, No Physical Delivery
Unbundled i-RECs are purchased independently from electricity supply. You buy certificates from a solar generator, retire them in the i-REC registry, and claim the renewable attribute — while continuing to receive normal TNB grid power.
- Simpler and quicker to procure
- No minimum demand requirement
- Lower cost — RM15–40 per MWh
- Accepted by GHG Protocol market-based Scope 2
Who Needs RECs in Malaysia?
Any organisation with renewable electricity targets, ESG reporting obligations, or supply chain sustainability requirements can benefit from procuring and retiring i-RECs.
RE100 Members
Companies committed to 100% renewable electricity that need to account for purchased grid electricity through market-based instruments.
ESG-Reporting Corporations
Listed companies and MNCs with annual sustainability reports requiring verifiable Scope 2 electricity emissions data.
MNCs with Sustainability Targets
International companies operating in Malaysia with group-level net zero or renewable energy targets aligned to SBTi or internal pledges.
Supply Chain Requirements
Malaysian suppliers to Apple, Google, IKEA, Unilever, and other brands that require Scope 3 supply chain decarbonisation evidence.
CDP Climate Disclosures
Companies reporting to CDP (Carbon Disclosure Project) that require renewable energy procurement evidence for climate questionnaires.
Interim ESG Pathway
Organisations planning on-site solar or CRESS but needing immediate Scope 2 coverage while long-term solutions are procured.
REC Pricing in Malaysia
i-REC prices in Malaysia typically range from RM15 to RM40 per MWh, depending on vintage year, technology type, and certification. Prices fluctuate based on global ESG demand, particularly from MNC supply chain requirements.
To cover a typical Malaysian factory consuming 500,000 kWh (500 MWh) per year with i-RECs, the annual cost would range approximately RM7,500 to RM20,000 — a fraction of on-site solar capital costs.
Trexon can source i-RECs on your behalf, advise on cost-efficient procurement volume, and manage retirement documentation for your ESG reports and CDP submissions.
Higher demand due to additionality and technology preference
More abundant supply, accepted by all major ESG frameworks
Same-year generation carries higher credibility for ESG auditors
Volume discounts available — contact Trexon for pricing
RECs vs Carbon Credits
RECs and carbon credits are both ESG instruments but serve different purposes. Most companies need both.
| Criteria | RECs / i-RECs | Carbon Credits |
|---|---|---|
| What It Offsets | Scope 2 (electricity) | Scope 1, 2, or 3 emissions |
| Standard | i-REC Standard, GHG Protocol | Verra VCS, Gold Standard, CDM |
| Registry | i-REC registry (tracked per MWh) | Verra Registry, Gold Standard Registry |
| Unit | 1 REC = 1 MWh renewable electricity | 1 credit = 1 tonne CO2 reduced/removed |
| Primary Use Case | RE100, Scope 2 market-based claims | Residual emissions, carbon neutrality claims |
| Typical Cost (Malaysia) | RM15–40 per MWh | RM30–150+ per tonne CO2 (varies) |
RECs cover Scope 2 electricity emissions. Carbon credits cover residual Scope 1 and 3 emissions. Both are used together in comprehensive net zero strategies.
Frequently Asked Questions: RECs Malaysia
Common questions from ESG managers and sustainability teams evaluating REC procurement in Malaysia.
What is a Renewable Energy Certificate (REC)?
A Renewable Energy Certificate (REC) is a market-based instrument that represents proof that 1 megawatt-hour (MWh) of electricity was generated from a renewable source such as solar, wind, or hydro. When a solar farm generates electricity, it can issue RECs independently of the physical electrons. Buying and retiring a REC allows your company to claim that amount of renewable electricity was generated on your behalf — even if you receive standard grid electricity.
What is an i-REC and how is it different from a regular REC?
An i-REC (International REC) is a globally recognised renewable energy certificate issued under the i-REC Standard — an internationally accredited framework used in markets that do not have their own national REC system. In Malaysia, i-RECs are the primary form of tradeable renewable energy certificates. They are issued by accredited i-REC issuers, tracked in a central registry, and retired on behalf of the purchaser to prevent double-counting. i-RECs are accepted by GHG Protocol, RE100, CDP, and SBTi.
Can RECs satisfy RE100 and CDP reporting requirements?
Yes — purchasing and retiring RECs (specifically i-RECs in Malaysia) qualifies as a market-based Scope 2 renewable energy claim under the GHG Protocol. This satisfies RE100's renewable electricity procurement requirements and is accepted by CDP climate questionnaires. However, RE100 and many sustainability auditors consider physical renewable energy procurement (such as CRESS or on-site solar PPA) to be a more credible and stringent claim than certificate-only instruments.
How much do RECs cost in Malaysia?
REC prices in Malaysia typically range from RM15 to RM40 per MWh (i.e., per REC), depending on the vintage year, technology type (solar vs hydro), certification standard, and market demand. Solar RECs may command a small premium over hydro RECs due to additionality considerations. Prices fluctuate with global ESG demand — particularly from MNCs with supply chain sustainability requirements. Trexon can source RECs and advise on cost-efficient procurement strategies.
What is the difference between bundled and unbundled RECs?
Bundled RECs are sold together with the physical electricity they represent — for example, under CRESS or CGPP, the green electricity and its associated certificate arrive together. Unbundled RECs are sold separately from the physical electricity. The buyer receives only the certificate, not the electricity itself. Unbundled RECs are simpler and cheaper to procure but are generally considered a weaker ESG claim than physical delivery mechanisms like CRESS.
How do RECs differ from carbon credits?
RECs and carbon credits address different emissions. RECs specifically offset Scope 2 (electricity) emissions by claiming renewable electricity generation. Carbon credits (e.g., Verified Carbon Units) offset Scope 1 or 3 emissions by funding projects that reduce or sequester carbon. RECs are issued under standards like i-REC; carbon credits under Verra VCS or Gold Standard. Companies often use both: RECs for electricity emissions, carbon credits for residual hard-to-abate emissions.
Ready to Procure RECs for Your ESG Report?
Trexon's corporate energy team can source, procure, and manage i-REC retirement on your behalf — providing full documentation for CDP, RE100, and GHG Protocol reporting.
B2B enquiries only. Response within 1 business day.
Corporate Green Energy Solutions
Virtual PPA & CGPP
Financial renewable energy settlement via Malaysia's Corporate Green Power Programme — bundled RECs with virtual electricity settlement
CRESS — Physical Green Electricity
Physical delivery of renewable electricity via TNB open grid access — the strongest form of green energy procurement in Malaysia
Physical Solar PPA
Zero capex on-site solar — the provider installs, owns, and maintains the system on your premises for location-based Scope 2 claims