Renewable Energy Credit (REC) and Cryptocurrency Mining
Effective cryptocurrency mining requires a sophisticated and strategic setup to ensure that the profit goals are met. Many operations look to scale up their production without taking the proper measures to build smartly, there is profit loss in several key aspects. Regardless of an operation looking at GPU or ASIC mining, some specific measures and considerations will make an impact on profit margins (see a larger discussion on the different mining solutions SOLminer offers in our blog ASIC vs. GPU: Which fits your needs?).
Setup before you scale up
Cryptocurrency mining ventures require significant energy (or drain, depending on perspective), technology needs, and infrastructure. Sourcing the right energy for the mining operation may have been limited to the traditional coal and natural gas options in years past. There is now a more concerted effort to make renewable energy sources more cost-effective and attractive. This is driving many cryptocurrency mining operations towards more sustainable and renewable energy sources. The use of renewable energy sources also then allows for additional benefit by way of Renewable Energy Credits (REC).
Diving into the energy topic – not only sourcing but also the cost – the use of RECs as a means to offset cost outlay and generate profit and/or tax benefits from surplus renewable energy is a strategic move towards environmentally conscious mining and sustained profit margins.
Approaching the initial mining operation with energy from renewable sources (such as wind or solar generation) from the beginning allows the operation to lessen the environmental impact, create a space for scaling the operation if desired, and open the operation to viable credit or monetization of surplus energy.
Profit from smart energy usage and maintenance
The United States Environmental Protection Agency (EPA) outlines on their website the overview and process of how an individual or an organization can benefit from and create an income or tax benefit from the selling of excess energy produced by a renewable source. In some instances, a mining operation can sell back unused energy credits in a marketplace or simply offset the initial incurred expense.
Additional options also could come from a grid management approach. Energy is pulled when needed, then the operation sustains itself from previously captured surplus when demand on the grid is at peak levels. RECs can also be purchased along with traditional electricity purchases to continue generating renewable energy.
As renewable energy sources generate electricity, there is no way to distinguish electricity from its counterpart, the REC. By selling off or selling back the REC, the energy grid system can maintain the process of capturing benefit from REC creation while still meeting the electricity demand.
SOLminer Offers Top of the Industry Mining & Operations Support
For eligible customers, SOLminer will manage your energy needs and consumption rates while offering assistance in selling back any excess power you produce which may provide tax credits. This returned energy to the grid means energy isn’t wasted and will positively contribute to your profit margins. SOLminer offers customized solutions based on your specific needs- if your demands or needs adjust, we support what you need when you need it.
SOLminer Means Mining Responsibly
SOLminer offers solutions for both GPU and ASIC with state-of-the-art power and cooling configurations to minimize any disruptions. We pride ourselves on a commitment to responsible mining with a reduction in environmental impact at the heart of what we do.
SOLminer offers large-scale hosting solutions for your operations with a personalized approach for the needs of every customer. Our staff is committed to providing holistic management- from monitoring electrical components and environmental factors to trouble-shooting or solutioning for any concerns that arise.
Contact us today to find out how SOLminer can help your operation reach your goals faster and more effectively.