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How to Buy Renewable Energy

Published in Renewable Energy Purchase 6 mins read

Buying renewable energy is a straightforward way to support sustainable practices and reduce your carbon footprint, primarily by choosing options that source electricity from clean sources like solar, wind, and hydropower. You can achieve this through a green power program offered by your local electricity provider or by purchasing renewable energy certificates from online sellers. Beyond these, direct installation and community-based solutions offer even more ways to go green.

1. Through Green Power Programs from Your Local Utility

Many electricity providers now offer "green power" or "renewable energy" programs. These programs allow customers to pay a slight premium on their electricity bill to ensure that a portion, or all, of their electricity is sourced from renewable energy facilities.

  • How it works: Your utility typically purchases Renewable Energy Certificates (RECs) on your behalf, effectively attributing renewable energy generation to your consumption, or directly invests in renewable projects within their grid. The electricity that flows to your home is still from the grid, but your payment supports the addition of renewable energy to that grid.
  • Benefits:
    • Convenience: Often requires just a simple opt-in.
    • Accessibility: Available to renters and those who cannot install on-site renewables.
    • Direct Support: Helps fund your local utility's renewable energy initiatives.
  • Examples: Many utility companies across the United States and Europe offer such programs. Check your monthly bill or your provider's website for specific options like "renewable choice" or "green energy add-on."

2. By Purchasing Renewable Energy Certificates (RECs)

Renewable Energy Certificates (RECs), also known as Green Tags or Tradable Renewable Certificates (TRCs), represent the environmental benefits associated with one megawatt-hour (MWh) of renewable electricity generation. When you buy RECs, you are purchasing these benefits, which are separate from the actual electricity.

  • How it works: When a renewable energy facility generates electricity, it also creates a corresponding REC. These RECs can be sold independently of the electricity itself. By buying RECs, you claim the environmental attributes of renewable electricity generation, supporting the financial viability of renewable energy projects and increasing the demand for clean energy.
  • Where to buy:
    • Online Sellers: Numerous online platforms and brokers specialize in selling RECs to individuals and businesses. Reputable sites often offer different types of RECs (e.g., wind, solar) and ensure they are properly tracked and retired.
    • Direct from Project Developers: Some renewable energy project developers may offer RECs directly to consumers or through specialized marketplaces.
  • Key Considerations:
    • Additionality: Look for RECs that are "new" or "voluntary market" to ensure they truly support new renewable energy development rather than existing, mandated projects.
    • Certification: Ensure RECs are certified by reputable tracking systems (e.g., Green-e Energy in North America) to verify their authenticity and prevent double-counting.
  • Benefits:
    • Flexibility: Purchase RECs regardless of your location or utility provider.
    • Direct Impact: Directly supports the development and operation of renewable energy facilities.
    • Verification: Certified RECs provide clear proof of your renewable energy purchase.

3. Direct Installation: Generating Your Own Renewable Energy

For homeowners and businesses, installing renewable energy systems on your property is a direct and impactful way to source clean power.

  • Solar Panels (Photovoltaic - PV): The most common form of on-site renewable energy.
    • How it works: Solar panels convert sunlight directly into electricity for your home or business. Excess electricity can often be sent back to the grid (net metering), earning you credits.
    • Considerations: Roof space, sun exposure, local incentives (tax credits, rebates), initial investment.
    • Examples: Residential rooftop solar systems, ground-mounted solar arrays.
  • Small Wind Turbines: Suitable for properties with consistent wind resources and sufficient land.
    • How it works: Wind turbines harness wind energy to generate electricity.
    • Considerations: Wind speeds, zoning regulations, noise, visual impact.
  • Geothermal Systems: Primarily for heating and cooling, but also considered renewable.
    • How it works: Utilizes the stable temperature of the earth to provide efficient heating and cooling for buildings.
    • Considerations: Higher upfront cost, drilling requirements, long-term savings.
  • Benefits:
    • Energy Independence: Reduce reliance on the grid and utility bills.
    • Long-term Savings: Potentially significant savings over the lifespan of the system.
    • Environmental Impact: Direct reduction of your carbon footprint.
    • Increased Property Value: Homes with solar panels often sell for more.

4. Community Solar Programs

Community solar allows multiple individuals or businesses to subscribe to or invest in a shared solar project located off-site.

  • How it works: Subscribers typically receive credits on their electricity bill for the power generated by their share of the community solar project.
  • Benefits:
    • No Rooftop Required: Ideal for renters, apartment dwellers, or homes with unsuitable roofs.
    • Lower Upfront Cost: Typically no installation costs or maintenance responsibilities.
    • Local Support: Often supports local jobs and clean energy development in your community.
  • Examples: Many states and municipalities are developing community solar initiatives. Search for "community solar" in your area.

Comparing Your Options for Buying Renewable Energy

Method Description Pros Cons Ideal For
Green Power Programs Opting into a renewable energy plan with your existing utility. Convenient, no installation, supports local grid efforts. Slight premium on bill, indirect impact on specific generation. Renters, apartment dwellers, anyone seeking easy renewable energy support.
Renewable Energy Certificates (RECs) Purchasing certificates representing 1 MWh of renewable electricity generation. Flexible, direct support for renewable projects, verified impact. Can be abstract for some, requires research for reputable sellers. Individuals/businesses wanting direct financial support for renewables anywhere.
Direct Installation (e.g., Solar) Installing solar panels or wind turbines directly on your property. Energy independence, long-term savings, tangible asset. High upfront cost, requires suitable property, maintenance. Homeowners, businesses with suitable property and investment capital.
Community Solar Subscribing to a share of an off-site solar farm. No installation, lower cost, supports local projects, accessible to renters. Limited availability in some areas, credits vary by program. Renters, apartment dwellers, homeowners without suitable rooftops, community-minded individuals.

Practical Tips for Choosing Your Renewable Energy Path

  • Assess Your Needs: Consider your budget, property ownership status, electricity consumption, and desire for direct vs. indirect impact.
  • Research Local Incentives: Look for federal, state, and local tax credits, rebates, or grants for solar installation or participation in green energy programs.
  • Check Provider Transparency: If opting for a green power program, understand how your utility sources its renewable energy and its commitment to new projects.
  • Verify REC Certification: When buying RECs, ensure they are certified by an independent body like Green-e Energy to guarantee their environmental integrity.

By exploring these various avenues, you can effectively choose how to buy and support renewable energy, contributing to a cleaner and more sustainable future.