What is a benefit of purchasing off-site renewable energy or renewable energy certificates (RECs) over installing onsite renewable energy systems such as photovoltaic panels?

Purchasing off-site renewable energy or renewable energy certificates (RECs) can indeed present lower upfront costs to building owners compared to installing onsite renewable energy systems like photovoltaic panels. When a building owner opts for off-site renewable energy or RECs, they avoid the significant capital investment needed for physical installation, which includes costs associated with equipment purchase, labor for installation, and potential modifications needed to accommodate the system.

Additionally, while onsite renewable energy systems can provide long-term benefits such as energy independence and potentially lower operating costs over time, they require ongoing maintenance and management, which can add to overall expenses after installation. With off-site purchases and RECs, building owners can achieve sustainability goals and support renewable energy without the complexities and costs associated with maintaining physical equipment onsite.

In contrast, while the sale of RECs can be profitable, it is not a guaranteed benefit of purchasing them. Similarly, while maintenance is indeed required for onsite systems, and energy savings can be realized through renewable energy purchases, the upfront cost advantage remains the most straightforward benefit when comparing these two options.