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Types of Products
Buying Green Power
Several different types of green power products are available. The main distinction between product options depends on where the power generation equipment is located: on the power grid or on-site at your facility. Your organization can utilize any combination of green power products to meet its goals.
Renewable Energy Certificates (RECs)
Renewable Energy Certificates (RECs), also known as green tags, green energy certificates, or tradable renewable certificates, represent the technology and environmental attributes of electricity generated from renewable resources.
Benefits
- Provides flexibility when green power products are not otherwise locally available.
- Lets you maintain existing relationships with your utility service providers.
- Serves as a practical product option for leased space environments when your organization may not have direct control of its utility service relationship.
- Allows you to specify product sourcing requirements such as resource type, location, and vintage.
- Allows you to scale the size of your organization’s green power purchase.
- Price premiums can be less than other “bundled” products.
Additional Considerations
- Does not provide a financial hedge against rising energy costs.
- Can be a challenge to communicate the concept of RECs to stakeholders.
Utility Products (green pricing or green marketing)
Depending on whether you live in a regulated or competitive electricity market you may be able to buy a green pricing product or green marketing product from your electricity provider. In competitive markets, customers can choose to purchase green marketing products from providers other than their local utility. In regulated markets, customers may be able to buy a green pricing product from their local utility. In either case, buyers pay a small premium in exchange for electricity generated from green power resources. The premium covers the increased costs incurred by the power provider (i.e., electric utility) when adding green power to its power generation mix.
Benefits
- Consolidates your green power purchase and electric service into a single utility bill.
- Can offer savings through long-term purchase contracts with your utility service provider.
- Is typically sourced from local renewable resources within the utility’s service territory.
Additional Considerations
- Can be limited in terms of resource base, location, and emissions reduction value.
- Can include fuel charges associated with fossil fuel generation.
On-site Generation Systems
On-site generation produces electricity from renewable resources using a system or device located at the site where the power is used. Eligible options for on-site generation traditionally include solar photovoltaic (PV), wind turbines, and biomass combustion. Facilities located near landfills or sewage treatment plants can also explore the option of recovering methane gas for on-site electricity generation.
Benefits
- Provides a predictable fixed price for electricity over the life of the system.
- Supplies a visible and tangible environmental commitment to stakeholders.
- Is easily communicated to and understood by stakeholders.
- Generates clean, renewable electricity at point-of-use.
- Can be scalable to meet your objectives.
- Supports local economies and job creation.
Additional Considerations
- Might be limited to states where financial incentives and high energy costs coexist, in order to achieve a financial return on the system within a specific timeframe.
- Can require a high upfront investment.
- Require maintenance over the life of the system.
- Involves more upfront planning and project management resources.
- System owners must retain RECs associated with system in order to make environmental claims.
On-site Financial Incentives
The Database of State Incentives for Renewable Energy (DSIRE) 
is a comprehensive source of information on the status of state programs and incentives promoting renewable energy, including information on financial incentives and net metering policies, as well as related awareness and investment programs.
Partnership Perspective
Your organization can utilize one or more of the above product options to satisfy EPA’s Partnership Requirements (PDF) (12 pp, 143K, About PDF). You should ensure that you retain, and preferably retire, all associated benefits (typically through RECs) in the name of your organization.