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How Do I Buy Green Power?

Green power is available from both regulated electric utilities and from energy service providers in restructured electricity markets that are open to competition. That said, not all utilities and not all restructured states have green power options available. For a list of current providers, see Where Can I Get It? 

There are three ways that you may be able to access green power:
  1. Green power from the grid
  2. On-site renewable generation
  3. Tradable renewable certificates

Green Power from the Grid

Green power from the grid is offered in both restructured markets that allow consumers to choose their electricity supplier, and in many traditional regulated (monopoly) utility markets. 

In restructured state markets, several energy service providers offer green power products. Providers try to compete by differentiating themselves and their products from the standard energy resource mix. Green power products are meant to appeal to consumers and businesses that place a value on environmental stewardship.

In regulated utility markets, over 200 utilities offer their customers an optional green service to support renewable energy development. Green power in regulated utility markets is sometimes referred to as "green pricing." Green pricing gives customers a voluntary option in what is still a monopoly electric service environment.

More information about green power from the grid can be found at the Department of Energy's Green Power Network

On-Site Renewable Generation

On-site renewable generation refers to electric generating equipment that is installed at the location it serves. This can increase electric reliability, provide more certain electricity costs, and in some cases help manage waste streams. In many cases, on-site generation may be eligible for net metering. With net metering, on-site generation can turn the electric meter backwards, giving the site owner credit for electricity generated, at least up to the level of on-site consumption.

Small wind turbines are ideal for remote locations not served by power lines, and may be good applications for utility system-connected applications. For more information, click on small wind systems.

Tradable Renewable Certificates

Tradable renewable certificates are sometimes also called "green tags." The green tag, a new way to purchase renewable energy benefits, divides renewable electricity generation into two separate products: 

  1. Generic commodity energy
  2. Environmental attributes

Green tags represent the environmental (and renewable) attributes created by the generation of a unit of electricity, such as a megawatt-hour. These attributes, embodied in a certificate, may be bought and sold either bundled (together with) or unbundled (separately from) commodity electricity.

For more information about tradable renewable certificates, click here.

NEXT: What Are Tradable Renewable Certificates?

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