Renewable Energy Certificate Market Size, Share, and Trends 2024 to 2034

The global renewable energy certificate market was valued at USD 12.72 billion in 2023 and is expected to reach USD 136.35 billion by 2033, poised to grow at a CAGR of 26.71% during the forecast period 2024 to 2033.

Key Takeaways

• North America led the global market with the highest market share of 32.14% in 2023.
• Europe region is estimated to expand the fastest CAGR between 2024 and 2033.
• By energy Type, the solar energy segment has held the largest market share in 2023.
• By capacity, the 5000 KWH segment captured the biggest revenue share in 2023.
• By end use, the compliance segment registered the maximum market share in 2023.

Renewable Energy Certificate Market Size in the U.S.  2024 to 2033

The U.S. renewable energy certificate market accounted for USD 2.87 billion in 2023 and is projected to expand to USD 32.57 billion by 2033, at a CAGR of 27.45% between 2024 and 2033.

Based on region, North America dominated the global renewable certificate market in 2023, in terms of revenue. Renewable energy certificates are non-tangible energy commodities that can be easily traded in a country like the US. The compliance and the voluntary are the two prominent markets in the US. The increased demand for renewable or green power in the region has significantly boosted the market growth in the region. The region is characterized by the presence of several technologically advanced companies that have huge energy requirements that foster the development of renewable energy sources. Further, the government initiatives to promote the growth of renewable energy certificates have significantly contributed to the growth of this region.

On the other hand, Europe is estimated to be the most opportunistic market during the forecast period. This is attributed to the rising demand for green energy across multiple industries. Moreover, increased consciousness regarding the deteriorating environmental conditions has forced the European government to heavily invest in the development of the renewable energy certificate market.

Growth Factors

The growth of the global renewable energy certificate market is driven by rising demand for the various types of power and the government policies that mandate a company to meet the required targets to use renewable energy. The increased pollution levels, ozone layer depletion, and global warming are the major issues that compelled governments across the globe to adopt certain policies in order to reduce their carbon footprint. The acquisition of the renewable energy certificate implies that 1MWh of power or electricity is generated by using the eligible and specified source of renewable energy. The increased consciousness regarding the deteriorating conditions of the environment across the globe is a major driver of the global renewable certificate market. The burgeoning sales of solar panels, micro hydro-power plants, and micro wind turbines are supplementing the growth of the renewable energy certificate market. The implementation of strict government regulations regarding the use of renewable energy sources is the most prominent factor that is expected to drive the growth of the global renewable energy certificate market.

The adoption of micro hydro power plants is supported by the presence of canals, water streams, and various resources of flowing water. Moreover, the heavy investments in innovations in the field of communication technology and rising demand for reducing GHG emissions are significantly fueling the demand for renewable energy certificates. Further, rising investments in the development of a hydropower plant that produces electricity of around 100 KW using flowing water sources are supplementing the market growth. The rising preference for green energy is fostering revenue generation through the trade of renewable energy certificates across the globe. The growing focus of the consumers, government, and corporations on attaining sustainability is a major factor that plays a crucial role in the growth of the market across the globe.

Renewable Energy Certificate Market Scope

Market Dynamics

Driver

Increased awareness among the public about the environmental impact of traditional energy sources such as fossil fuels prompt a growing demand for sustainable energy alternatives. Consumers are increasingly seeking cleaner and renewable sources of energy to reduce carbon emissions and combat climate change. As public awareness of sustainability issues grows, consumers increasingly prioritize products and services from companies that demonstrate environmental responsibility. Many businesses, in turn, adopt renewable energy sources and purchase renewable energy certifications to align with consumer preferences and meet their corporate sustainability goals. Thereby, the factor acts as a major driver for the renewable energy certification market.

Restraint

Lack of investors in the industry

Renewable energy projects often have higher initial capital costs compared to conventional fossil fuel-based energy projects. The lack of investment can make it challenging for renewable energy developers to cover these upfront expenses, delaying project implementation or reducing the scale of deployment. The absence of consistent and supportive policy frameworks for renewable energy can deter investors and developers from committing funds to projects. Uncertainty surrounding government incentives, subsidies, tax credits, and renewable energy targets may create a volatile investment environment, discouraging long-term investments in the renewable energy certification market.

Opportunity

Rising government efforts

Government incentives and financial support programs, such as grants, loans, and subsidies, help reduce the upfront costs of renewable energy projects and facilitate their development. renewable energy certifications enhance project revenue streams and improve project economics, making renewable energy investments more attractive to developers and investors. Government involvement in renewable energy certification markets often includes establishing regulatory frameworks, market rules, and standardization measures to ensure transparency, credibility, and integrity in renewable energy certification transactions. Clear rules and standards promote market liquidity, investor confidence, and participation in renewable energy certification trading.

Energy Type Insights

Based on the energy type, the solar energy segment dominated the market with the largest revenue share in 2023. The solar power is obtained from the conversion of the solar heat into electricity. It is one of the most popular and essential sources of renewable energy. Solar power is obtained from sunlight by either using concentrated solar energy or photovoltaic. Photovoltaic is popular for medium and small-size applications. The growth of this segment is driven by the rising applications of solar energy in a wider variety of products such as calculators and remotes. Further, the rising government initiatives and government investments to develop solar panels and increase their adoption across the globe have fueled the growth of this segment. The rising investments from the private sector to develop solar power plants on a large scale are expected to further foster the growth of the solar energy renewable energy certificate market across the globe.

Capacity Insights

Based on the capacity, the 5000 KWH segment dominated the global renewable certificate market in 2023, in terms of revenue. This is attributable to the rapidly growing number of wind and solar farms across the globe owing to the rising demand for renewable energy. The extensive usage of fossil fuels has resulted in its depletion and hence the demand for various renewable energy sources is growing rapidly across the globe.

End Use Insights

Based on the end use, the compliance segment dominated the global renewable certificate market in 2023, in terms of revenue. This is simply attributed to the increased government initiatives to promote the adoption of green energy and implementation of regulations regarding meeting the targets of minimum-level use of renewable energy.

Recent Developments

• In March 2024, KBank and INNPOWER partnered to unveil a renewable energy certification platform for Thailand. This initiative aims to promote the expansion of renewable energy utilization in Thailand. KBank has also launched a wide range of products and services under the concept while the collaboration offers opportunity for large businesses to achieve net zero emissions target.
• In December 2023, University of Oklahoma announced the launch of new program to focus on renewable energy. The program aims to create an avenue for business professionals to gain certification in the business of renewable energy.

Renewable Energy Certificate Market Companies:

• Central Electricity Regulatory Commission
• Green-e Energy
• Environmental Tracking Network of North America
• Western Area Power Administration
• General Services Administration
• US Environment Protection Agency and Defense Logistics Agency Energy

Segments Covered in the Report

By Energy Type

• Wind Power
• Solar Energy
• Gas Power
• Hydro-electric Power

By End Use

• Compliance
• Voluntary

By Capacity

• 0-1000 KWh
• 1000-5000 KWH
• Greater that 5000 KWH

By Geography

• North America
  • U.S.
  • Canada
• Europe
  • U.K.
  • Germany
  • France
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
• Rest of the World