About Green Energy Credits
Green energy credits provide an alternative to plans that charge more for higher emissions, which amounts to a fine for higher carbon emissions. Rather than imposing fines, REC's offer incentives to energy providers by subsidizing a company's use of renewable energy. Purchasers who are utility customers, residential and business, use the premiums they pay for green energy credits to make a statement to their energy provider that they want to move away from non-renewable energy resources. Green energy credits, REC's, are American citizens' way of saying that America needs to end its dependence on non-renewable fuels, such as fossil fuels and natural gas.
For homes and businesses, residents and owners can opt with their energy provider to offset the fact that renewable energy is not available in the resident's region by paying a set rate. The premiums go into an infrastructure fund. It is a monetary message that expresses citizens' demand for more renewable energy development. Green energy providers, such as wind farms, receive one green energy credit for every specified amount of energy produced. At 1,000 kWh/1 MWh, one green credit is just a bit more than one average residential energy user consumes in one month. That renewable energy goes into the grid. Then the credit is sold.
Certain types of renewable energy technologies qualify for green energy credits. These include, but are not limited to solar electric, wind generated power, geothermal technology and biofuels. Energy technology that utilizes fossil fuels do not qualify. Depending upon the utility and the state in which one lives, any residential energy user can choose some form of renewable energy through their energy provider. Interested parties can contact their local utility for information. (See Additional Resources)
When ordering green energy credits from a provider, a resident or business owner calculates energy usage and what offsets the resultant carbon emissions. Then the buyer simply places an order. Every credit that is purchased is invested back into renewable energy sources and the overall carbon footprint lightens. If a utility consumers does not provide renewable energy, purchasers can become "carbon neutral" by offsetting energy usage with green energy credits. The credit cancels out usage.
Even if a particular utility does not offer any renewable energy, it is possible to purchase green energy credits from that provider. The the money is invested in a renewable energy source somewhere. The boundaries that distinguish one utility from another are not relevant to where credits are targeted. Also known as Tradable Renewable Certificates, green energy credits are only available when renewable energy sources generate a specified amount of power. Some purchasers may want to verify that renewable energy is available in their region. Some may want to make a more global impact and purchase green energy credits for the good of the whole.
