As carbon emissions from fossil fuels continue to warm the planet, eco-conscious consumers are increasingly interested in sourcing their electricity from renewable energy. This desire to adopt green energy solutions often raises the question of whether homeowners and renters can purchase electricity from renewable sources without installing solar panels or windmills on their property. Fortunately, the answer is yes, though the availability and cost of such options can vary.

Availability of Green Energy

Renewable energy sources such as wind, solar, hydropower, geothermal, and biomass accounted for about 21% of U.S. electricity generation in 2023, according to the U.S. Energy Information Administration (EIA). The majority of energy, approximately 60%, still comes from fossil fuels like coal, natural gas, and oil, which release carbon dioxide, a greenhouse gas contributing to global warming. The White House aims for electricity generation to be free of greenhouse gas emissions by 2035.

Despite the growing interest in renewable energy, not everyone is aware that they can opt to buy green power. According to a survey by the National Renewable Energy Laboratory (NREL), only one in six U.S. adults know they may have the option to buy renewable power from their electric company or another provider. "The market does continue to grow every year in terms of sales and customers," said Jenny Sumner, group manager of modeling and analysis at NREL. However, she notes that awareness is still low.

How Consumers Can Buy Green Power

Green Pricing Programs

One common method is through green pricing programs, where consumers pay their utility a small premium to ensure their electricity comes from renewable sources. This cost generally exceeds that of a utility's standard electricity service by about 1 to 2 cents per kilowatt hour. This can translate to an additional $5 to $15 per month, depending on the household's energy use. Nearly half of Americans, 47%, expressed willingness to pay more for 100% renewable electricity, with an average willingness to pay about $33.72 more per month, according to a 2019 poll by Yale University’s Program on Climate Change Communication.

Green Power Marketing Programs

In states with competitive energy markets, consumers can opt into green power marketing programs. These allow consumers to choose from various companies generating renewable power. States with competitive or deregulated markets include California, Connecticut, Delaware, Illinois, Maine, Maryland, Massachusetts, Michigan, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, Texas, and Virginia. These programs might also come with a premium but can sometimes be price-competitive with default electricity options.

Community Choice Aggregation

Community choice aggregation programs allow local governments to buy power from alternative green power suppliers on behalf of their residents. These programs are especially prevalent in states like California. Residents are typically automatically enrolled in these programs and can opt out if they wish.

Renewable Energy Certificates (RECs)

Even if a consumer opts for renewable power, the electricity entering their home might not come directly from renewable sources. This is due to the nature of electricity movement through the shared grid. Renewable energy certificates (RECs) serve as an accounting mechanism, ensuring that the generation and purchase of renewable energy are tracked. Consumers can purchase RECs separately from their utility service to support renewable energy projects, typically sold by brokers or marketers.

Verification of Green Energy

To ensure authenticity, experts recommend choosing green power options or RECs verified by independent third parties. The Center for Resource Solutions, a nonprofit overseeing the Green-e certification standard, is one such independent body. Green-e verifies disclosures energy suppliers make to consumers about renewable energy and ensures that the purchase isn't being counted toward state energy mandates.

Benefits and Challenges of Green Energy

Opting for renewable energy helps increase the overall demand for green power, driving change in the energy mix and supporting the transition away from fossil fuels. However, access to green energy options is not uniform across all states and regions. Moreover, these programs often come with a slight price premium, which can be a deterrent for some consumers.

In conclusion, while the transition to renewable energy is gaining momentum, awareness and access remain challenges. Consumers interested in green power should explore the options available through their utility or other providers, considering the potential benefits and costs associated with these programs. By making informed choices, they can contribute to a more sustainable future while also potentially enjoying the long-term cost savings and environmental benefits of renewable energy.