How it Works

Renewable Energy Certificates (RECs or Green Tags) are sold by third party green power companies that are separate from your power supplier and different from the actual green power producer. Instead of paying a premium for green power from your local power company, your purchase of a REC supports the incremental value of renewable energy that is fed onto the power grid elsewhere on your behalf. The purchase of a certificate is a financial investment in green power, guaranteeing more renewable energy into the grid and displacing conventional energy sources. Certificates are theoretically available anywhere, providing an opportunity for schools to green their electricity use even if purchasing green power from the utility or installing an on-site renewable energy system is not an option. 

Things to Consider

Location, Location, Location

Because certificates can be bought from a supplier anywhere, it is not guaranteed that your money will go to support local projects. Green power companies often have a portfolio of projects that you can view to evaluate whether or not the certificates provided will meet your standards. Thus, if supporting local renewable energy is of concern to you and your institution, you will want to choose a REC company that supports projects in your region. Many of the green power companies in the Northwest do fund local renewable energy projects.

Purchasing and Cost

REC’s are sold at varying prices, anywhere from 1/2¢ to 5¢ per kWh.  The prices are determined by the characteristics of the certificate, for example, what type of renewable energy the certificate comes from, or the location and size of the project you are supporting.  You might want to get several bids from REC suppliers to compare your options.

What Makes a Good REC

As with a purchase of delivered green power from your power supplier, you should check to make sure the REC is Green-e (www.green-e.org) certified.

Considerations about the renewable energy resource from which the RECs were produced (type of renewable generator and when it was installed) are as important for REC purchases as they are for evaluating delivered green power options.  Consider the content of a certificate that is from solar, wind, biomass, or other renewable resources; as well as small versus large projects. Also consider new versus existing renewables.  (all Green-e certified RECs meet standards for “new renewables.”)  RECs from new renewable resources (which in the Northwest means projects that were installed after May of 1999) mean clean power is displacing existing, polluting power generation on the grid.