Renewable Energy Projects: REC Purchase and Sale Agreements, Net Metering Credit, Interconnection Agreement
Negotiating Key Provisions, Allocating Risk, Navigating Regulatory Timelines and Requirements
About the Course
Introduction
This CLE course will examine key considerations for counsel advising on renewable energy projects before entering renewable energy certificate (REC) purchase and sale agreements, net metering credit purchase agreements, and interconnection agreements. The panelist will discuss key components of each agreement and offer their perspectives and best practices for negotiating and structuring the agreements.
Description
RECs offer project developers an increasingly important revenue stream to support renewable energy facility project development, especially as states increasingly mandate renewable portfolio standards (RPS) to implement clean energy objectives. Such RECs can be created and sold in voluntary markets or become a mandatory compliance tool in states with mandatory RPS programs.
When negotiating and structuring REC purchase and sale agreements, counsel should consider voluntary and mandatory REC programs that create markets for RECs, how RECs can be sold and to whom, parties' termination rights, the buyer's commitment to pay, and the applicable state regulatory structures and requirements for RECs, including the state's use of alternative compliance payment mechanisms as an alternative to RECs. Counsel must also understand the state's long-term RPS outlook and how supply/demand economics impact future market values for RECs.
Net metering credits can also play a meaningful role in project economics, particularly where state programs and utility tariffs allow credits to be generated, valued, and transferred to third parties.
Interconnection is essential in the delivery of energy to the grid and the generation of RECs. When structuring interconnection agreements, counsel should know the regulatory considerations and implications of whether the project operator is the site owner or the customer and the complexities that arise for REC transactions depending on the answer.
Counsel should also consider the circumstances under which the utility can disconnect the renewable energy project from the grid, and if disconnected, how the project can deliver to the end user. When selling energy directly to a utility under the Public Utility Regulatory Policies Act, a related issue is whether the utility acquires associated RECs from the qualifying facility (QF) automatically or whether the project developer can sell RECs separately from the energy generated from such QFs.
Counsel must carefully negotiate key provisions in each agreement and evaluate considerations, including regulatory obligations, before advising clients on executing the documentation.
Listen as the presenter discusses navigating the regulatory and transactional structures involved in REC purchase and sale agreements, net metering credit purchase agreements, and interconnection agreements.
Presented By
Mr. Coates is an energy, environmental, and public utility attorney in Holland & Knight's New York office. He represents and advises independent power producers, utilities, power suppliers, project developers, and financial institutions in regulatory matters and commercial transactions involving the financing, development, and operation of energy infrastructure in the United States. Mr. Coates experience extends across a broad range of both renewable and non-renewable energy resources, including wind, solar, fuel cell, combined heat and power, geothermal, liquefied natural gas, biomass and traditional fossil-fired electric generating units. His project development experience includes negotiating power purchase agreements, offtake/sales agreements, EPC contracts, O&M agreements, and securing environmental permits and public financing for energy infrastructure projects. Mr. Coates has also advised clients in the acquisition and disposition of energy assets in various M&A transactions.
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This 90-minute webinar is eligible in most states for 1.5 CLE credits.
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Date + Time
- event
Tuesday, June 23, 2026
- schedule
1:00 PM ET/10:00 AM PT
I. REC purchase and sale agreements
A. Considerations
B. Provisions
C. Regulatory requirements
II. Net metering credit purchase agreements
A. Credit creation and valuation concepts
B. Transferability and tariff sensitivity
C. Regulatory change risk and documentation themes
III. Interconnection agreements
A. Considerations
B. Provisions
C. PURPA QF issues
D. Regulatory requirements
IV. Best practices for negotiating and structuring the agreements
The panelist will review these and other key issues:
- Key provisions that should be addressed when structuring REC purchase and sales agreements and interconnection agreements
- Recognizing important regulatory structures by state and the role of PURPA in such transactions
- Net metering credit purchase agreement considerations, including tariff-driven valuation, transferability, regulatory change risk, and coordination with project economics
- Long-term considerations for parties and their counsel entering these agreements
- Strategies counsel should employ in drafting and negotiating both REC purchase and sales agreements and interconnection agreements
Related Courses
Renewable Energy Projects: REC Purchase and Sale Agreements, Net Metering Credit, Interconnection Agreement
Tuesday, June 23, 2026
1:00 PM ET/10:00 AM PT
