iREC vs REC vs Carbon Credits vs Green Power: What Should an Indian Plant Buy?
Ask five sustainability teams how they plan to hit a renewable target and you'll hear five answers: buy RECs, buy iRECs, sign up for green power, buy carbon credits, or build a project. These are not interchangeable. Each one does a different job, and the wrong choice can leave a plant holding a certificate with no real change in the electricity it uses.
This guide explains how the four options differ for Indian C&I plants, what each one lets you claim, and how to choose. It is general information and not legal or financial advice.
The short answer
Green power changes the electricity your plant actually uses. RECs and iRECs are certificates that each represent one megawatt-hour of renewable generation, used for compliance or reporting. Carbon credits represent one tonne of CO2 equivalent avoided or removed elsewhere. They offset emissions. They do not reduce your Scope 2 number.
A simple order of action works for most plants: cut and switch first, certify second, offset last.
What green power means for an Indian plant
Green power is physical renewable electricity delivered to your plant. It is the only option here that changes your power mix and, in many cases, your power cost. Common routes include:
Rooftop or on-site solar, where space allows. See how rooftop solar compares with offsite Open Access projects.
Open Access supply from a solar, wind or wind-solar hybrid project.
A group captive structure, where the buyer holds equity in the project.
A green tariff from the local DISCOM, where one is offered.
Green power usually has the strongest case for both cost and Scope 2 reporting. It also needs eligibility, approvals and a long-term contract. Our free Open Access calculator gives a first view of the savings. For multi-site buyers, a financial contract can help too. Read our guide to Virtual PPAs in India.
What a REC is
A Renewable Energy Certificate is an Indian certificate. One certificate represents one megawatt-hour of renewable generation. The certificate is separate from the electricity, so you can hold one without buying power from the project.
RECs are used by obligated entities that must meet a renewable purchase target, and by voluntary buyers that want to cover part of their consumption. The REC framework has been under revision in 2026, so check the current rules, eligibility and validity before you buy.
What an iREC is
An iREC is an international renewable energy attribute certificate. It also represents one megawatt-hour. Generators in India can register to issue them, and many multinational buyers use them for voluntary Scope 2 reporting.
Whether an iREC counts depends on the reporting framework and your auditor, not on the certificate alone. Confirm acceptance with the body you report to before you purchase. Buyers working towards 100% renewable power should read our RE100 blueprint for Indian C&I companies.
What a carbon credit is
A carbon credit represents one tonne of CO2 equivalent avoided or removed by a project. Buying one offsets emissions somewhere else. It does not make your electricity renewable and it does not lower your Scope 2 figure.
India's own carbon market is taking shape. Our explainer on CCTS and what it means for your plant covers the basics. Exporters should also check how CBAM treats emissions before counting on certificates or credits to help. Reducing real emissions is the safer path.
What each instrument lets you claim
Green power: your plant runs on renewable electricity, subject to the contract and applicable rules.
REC: you covered a stated number of megawatt-hours with Indian renewable certificates.
iREC: you matched megawatt-hours with international certificates for voluntary reporting.
Carbon credit: you offset a stated number of tonnes of residual emissions. This is not a renewable electricity claim.
Which one fits your situation
Choose green power if
Your goal is lower grid dependence, lower power cost and a real change in your Scope 2 emissions.
Your plant has steady load and can meet Open Access or captive eligibility.
You can commit to a medium or long-term contract.
Choose RECs if
You face a renewable obligation or want a flexible, low-commitment way to cover part of your consumption.
You can't yet get physical supply for every site.
Choose iRECs if
A global parent or customer asks for voluntary Scope 2 reporting.
Your reporting body has confirmed that iRECs are accepted.
Use carbon credits if
You have already cut and switched what you can and need to offset the residual.
You can verify project quality and avoid double counting.
Common mistakes to avoid
Treating certificates as physical supply. A certificate doesn't change the power that reaches your meter.
Buying the cheapest certificate without checking vintage, technology, registry and retirement in your name.
Double counting a claim, for example when the same project's attributes are sold twice.
Using carbon credits to claim a Scope 2 reduction.
Skipping the check with your auditor or reporting body before you buy.
Checklist before you buy
Define the claim you need: compliance, voluntary Scope 2, or offset.
Confirm that your reporting framework accepts the instrument.
Check the generation year, technology and source of each certificate.
Make sure certificates are retired in your company's name, with an audit trail.
Compare the certificate route against a Open Access or captive project on cost and impact.
Keep a record of every purchase for audit.
Plants with round-the-clock operations can also look at 24/7 green energy with wind-solar-BESS hybrids, which matches supply to the hours you actually run. For a wider plan, see our industrial decarbonization roadmap and the renewable energy and carbon glossary.
FAQ
Is an iREC the same as a REC?
No. A REC is an Indian certificate under the domestic framework. An iREC is an international certificate used mainly for voluntary reporting. Both represent one megawatt-hour, but their rules, buyers and acceptance differ.
Can RECs or iRECs reduce my Scope 2 emissions?
They can support market-based Scope 2 reporting where your framework accepts them. They don't change the electricity you consume, and acceptance depends on the framework and your auditor.
Do carbon credits count as renewable energy?
No. Carbon credits offset emissions. They don't make your electricity renewable and they aren't a Scope 2 reduction.
Which option is the cheapest?
Certificates are often the lowest upfront route, but price is not the only test. Quality, acceptance and the claim you need matter more. Physical green power can deliver savings and a real emissions cut, which certificates cannot.
Can I combine green power with certificates?
Yes. Many plants supply what they can through rooftop solar or Open Access and use certificates for the remaining gap. Offsets then cover only the residual.
Will certificates help with CBAM?
Not automatically. Check how the rules treat each instrument. Cutting actual emissions is the safer route for exporters.
Final takeaway
REC, iREC, carbon credit and green power solve different problems. Start with the claim you need, then pick the instrument that supports it. Cut and switch first, certify second, and offset only what remains.
Related reading from ENERCO
Talk to an independent advisor
ENERCO is an independent renewable energy consulting firm. We don't sell hardware, run EPC contracts or take vendor commissions, so our advice on certificates, offsets and physical supply stays neutral. Explore our services, see the clients we have worked with, browse our projects, or book an online consultation to choose the right route for your plant.
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