Green Power Explained

There are no green electrons, nor can we change the supply sources at will, but we can purchase green power to varying degrees, by incorporating Renewable Energy Credits (RECs) into our electricity mix, or by generating your own clean electricity. The point of the exercise is that for consumers Green Power is a way of voting with your dollars, and signaling a preference for clean energy technologies. In short: RECs are a financial mechanism to support clean power, and credits are awarded to producers of clean renewable energy, and by buying those certificates, the consumer can stimulate development of such resources. RECs can be built into the rates by your provider or purchased independently. In the links section there are a whole range of information sources on Green Power and RECs.

If you look at the Corporate Top 50 Green Power purchasers, you see that Intel buys 88% Green Power, with a mix of on-site generation and recs from Sterling Planet and others. Starbucks buys 52% Green Power, Whole Foods 100%, and Lockheed Martin 15% , Wal-Mart 8%, etc. So it is pretty much a matter of how much you want to do in this area as a matter of corporate policy.

What it means for your rates. 100% Green Power typically adds some 2 cents per kwH to your rates. The typical household uses an average of 900 kwH/mo, so on average to "go green" should cost you ca $18/mo on your rates if you happen to be such an "average" household.

With my own household, I was with one supplier for a few years, and with the benefit of hindsight, I paid ranging from 0.5 cents to 4.00 cents per kwH extra for my 100% Green Power, so over time it averaged out ca 2%. Green power is a conscious choice to make a difference. Green power is about empowerment, about choice, about making a difference. It is a lifestyle choice, not an energy purchasing decision, and that is why most ESCOs fail in the mission of marketing Green Power.