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Rise | We've Done the Research

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These statistics show that transforming the electricity sector should be one of the main priorities to help us achieve a net-zero future. And there are indeed signs for hope. A recent report by the Solar Energy Industry Association (SEIA) finds that solar power has enjoyed an annual growth rate of 49 percent over the past ten years. There is now enough solar capacity installed nationwide to power 16 million homes. Despite these advances, however, challenges remain. 

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Many families feel that renewable energy is simply out of their reach without the ability to solar panels on their own homes. In the past, Rise has written about how community solar energy programs respond to this problem. Green power programs offered through local utility providers are another potential option. They can facilitate the uptake of renewable energy for individuals, families, and homeowners who cannot install renewable energy systems on their own homes or properties.

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How Does Purchasing Green Power Work?

Several schemes and programs allow individuals and households to purchase and support green power. The United States Department of Energy reports that in every state of the country, individuals can decide to buy green power through one of the following types of programs:

  • Green Pricing
  • Competitive Electricity Markets
  • Green Certificates

Green Pricing

With green pricing programs, power companies allow their customers to pay a small premium to ensure that the electricity delivered to their homes is generated from clean, renewable, and green energy sources. The minimal extra costs cover the additional expense of developing and distributing renewable energy from the utility provider's perspective. However, it is essential to point out that renewable energy options are becoming increasingly cost-competitive with fossil fuel sources of power. In many cases, they are already the cheapest option on the market for many power companies.

Competitive Electricity Markets

In the past, large corporations dominated electricity markets that essentially had a monopoly over power distribution in a given area. In those cases, individuals had little influence over the type of energy they received. However, with competitive electricity markets, many consumers can exercise an increased level of control over which companies generate their power. Many states have restructured electricity grids and the industry in general to increase levels of competition. Due to growing consumer awareness of the importance of renewable energy options, many power providers with a primarily renewable energy portfolio are taking advantage of these restructured markets to sell clean power products to customers - for residential, commercial, and wholesale use. Consumers can decide to pay a slightly higher price in these green power arrangements to "offset" the additional costs utility companies incur by prioritizing green power sourced from renewable sources.

Green Certificates

Green certificates allow individuals and households to contribute to clean and renewable green power across the country. Homeowners can take advantage of this, even if no power companies directly offer this type of energy in your region. These renewable energy certificates are also known as tradable renewable certificates. Consumers purchase these certificates, which are subsequently sold to businesses and individuals who want to increase the amount of clean power entering our nation's electricity supply. Green certificates essentially make it possible for any household to encourage the development of additional renewable energy projects.

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One of the leading green power companies in Canada, Bullfrog Power, promises that "for every kWh of electricity you use, a kWh from a pollution-free, renewable source is put on the grid on your behalf." As more and more renewable energy projects are rolled out, this also helps to drive down the price to help green power move into the mainstream in the coming decade. The EPA furthers this sentiment. They say that purchasing green power can help to "hedge against future electricity price increases and volatility," especially energy associated with the uncertainty of increasingly hard to extract fossil fuels.

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How Much Does Green Power Cost?

The actual cost of purchasing green power will depend on your specific energy company and the type of green power program that they have in place. However, the National Renewable Energy Laboratory (NREL) finds that the average residential premium for participation in a green power program is about $0.018/kilowatt-hour (kWh). For a typical household, this averages out to an additional energy cost of $195 per year.

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Tobias Roberts

Rise Writer

Expert. Practical. Sustainable.

Article by

Tobias Roberts

Tobias runs an agroecology farm and a natural building collective in the mountains of El Salvador. He specializes in earthen construction methods and uses permaculture design methods to integrate structures into the sustainability of the landscape.

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