Green-e® certified Renewable Energy Certificates (RECs) Can Help Your Business Reach your Sustainability Goals.

By purchasing Green-e® certified RECs, organizations can credibly reduce their emissions footprint, drive new renewable development, increase overall renewable energy demand, and demonstrate alignment with leading sustainability initiatives – all verified by a trusted third-party certification.

Green-e® certified Renewable Energy Certificates (RECs) help organizations and individuals achieve their sustainability goals in several key ways:

Enable verified renewable energy usage claims: By purchasing Green-e® RECs and pairing them with electricity consumption, buyers can make credible claims about using renewable electricity and reducing their Scope 2 emissions footprint. Green-e® verification ensures the RECs are not double-counted or used for compliance.

Support new renewable energy development: Green-e® requires RECs to come from renewable facilities no older than 15 years, driving investment in new renewable generation capacity that displaces fossil fuels. The revenue from REC sales improves the financial viability of these new projects.

Increase demand for renewable energy: Purchasing Green-e® RECs increases market demand, incentivizing further development of renewable power sources over time. This growth in clean energy helps reduce air pollution and greenhouse gas emissions associated with fossil fuel generation.

Provide transparency and quality assurance: Green-e® mandates disclosure of the type, quantity, and location of the RECs. Their certification process verifies the RECs meet strict environmental standards, giving buyers confidence in their purchase.

Align with leading sustainability programs: Green-e® certification is recommended or required by prominent environmental standards like LEED, The Climate Registry, RE100, and others. This allows organizations to make credible sustainability claims recognized by these programs.

Enhance a company's brand reputation with Green-e® RECs

By undergoing the rigorous Green-e® certification process, companies can enhance their brand reputation through verified sustainability claims, association with a trusted ecolabel, transparency into their renewable energy purchases, alignment with environmental leadership, and differentiation from competitors – all of which build credibility and trust with customers and stakeholders.

Credibility and third-party verification:

The Green-e® certification process involves rigorous third-party audits and verification to ensure renewable energy purchases meet strict environmental standards. This independent verification lends credibility to a company’s sustainability claims and renewable energy usage.

Recognized and trusted certification:

Green-e® is widely recognized as North America’s leading renewable energy certification program. The Green-e® logo is a trusted ecolabel that signals to consumers and stakeholders that a company’s renewable energy purchases are legitimate and impactful.

Transparency and quality assurance:

Green-e® requires disclosure of the type, quantity, and geographic source of the renewable energy purchases. This transparency builds trust with customers and stakeholders interested in a company’s environmental commitments.

Association with sustainability leadership:

Green-e® certification is recommended or required by prominent environmental standards like LEED, The Climate Registry, RE100, and others.

By achieving Green-e® certification, a company associates its brand with sustainability leadership and alignment with respected green building and climate initiatives.

Differentiation in the marketplace:

As consumers increasingly prioritize sustainability, the Green-e® logo allows certified companies to differentiate their products and services in the marketplace, appealing to environmentally-conscious buyers.

The Cost of Green-e RECs

The cost of a Green-e® certified Renewable Energy Certificate (REC) has fluctuated significantly in recent years compared to traditional energy costs. Here are some key points about the pricing:

Historically, Green-e® RECs were very inexpensive, often around $0.50 to $1 per REC (representing 1 megawatt-hour of renewable generation).

However, from 2021 to late 2022, Green-e® REC prices spiked dramatically, reaching over $7 per REC at the peak due to supply constraints and increasing corporate demand.

Currently, Green-e® REC prices have come down but are still elevated compared to a few years ago, ranging from around $2 to $4 per REC as of early 2023.

In contrast, the average residential electricity price in the U.S. is around 14 cents per kilowatt-hour or $140 per megawatt-hour as of early 2023.

So, while Green-e® RECs used to be a very low-cost way to make renewable energy claims (less than 1% of retail electricity prices), the recent price escalation means they now represent a more significant premium of 2-4% above average residential electricity rates.

However, REC prices can vary significantly based on region, technology type, vintage year, and other factors. Utilities’ green pricing programs that bundle RECs and electricity also have a wide range of premiums.

The key takeaway is that while historically inexpensive, recent market dynamics have caused Green-e® REC prices to increase substantially relative to average electricity costs, though they still enable renewable energy claims at a relatively low premium compared to traditional grid electricity.

There are several alternatives to buying Renewable Energy Certificates (RECs) for meeting renewable energy goals:

Power Purchase Agreements (PPAs)

PPAs involve directly contracting with a renewable energy project developer to purchase the electricity generated over a long period, typically 10-25 years. This provides a guaranteed revenue stream that enables financing and construction of new renewable projects. PPAs give the buyer access to the project’s RECs as well.

On-site renewable energy installation

Organizations can install solar panels, wind turbines or other renewable energy systems directly at their facilities. This allows them to generate and consume their own renewable electricity on-site, reducing reliance on the grid and RECs.

Community solar/renewable energy programs

Many utilities offer community solar or renewable energy programs where customers can purchase or subscribe to a share of a local renewable energy project. The renewable electricity is delivered through the grid.

Green retail energy supply options

Some retail energy suppliers offer renewable energy supply options where some or all of the electricity provided is sourced from renewable generators. The supplier handles procurement of RECs on the customer’s behalf.

Carbon offsets

While not directly renewable energy, purchasing verified carbon offsets can help organizations offset emissions from non-renewable electricity usage by funding emissions reduction projects elsewhere.

Unbundled renewable energy contracts

Similar to PPAs, these involve contracting directly with renewable generators to purchase the electricity and RECs over a long period, without being tied to a specific project.

The ideal alternative(s) depends on an organization’s goals, budget, geographic location, and access to different renewable procurement options in their market. Combinations of these alternatives along with REC purchases are commonly used.

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