Renewable Energy Frequently Asked Questions
What is renewable energy and what benefits does it provide?
Generally "renewable energy" is generated from renewable resources such as solar, wind, biomass (plant and animal waste), hydro, and geothermal. These sources of renewable energy, as the name implies, can, for the most part, regenerate indefinitely. Fossil fuels such as natural gas, coal and oil have a finite and declining supply. Moreover, fossil fuels produce significant quantities of greenhouse gases. Fossil fuel power plant emissions include substantial quantities of carbon dioxide, a major greenhouse gas.
How can consumers access renewable energy?
A consumer can generate renewable energy on-site; for example, install an on-site photovoltaic (solar panel) array with ancillary distribution system. Another option is to purchase renewable energy certificates (RECs) from an energy supplier like Direct Energy Business. Since all energy sources are commingled on the power grid, what the consumer is really buying is a renewable energy certificate or REC, which evidences a consumer's support of the production of renewable energy.
What is a renewable energy certificate or REC?
When a generator produces energy from renewable sources (solar, wind, biomass, etc), along with the associated renewable and environmental attribute, the electricity itself is typically sold into the grid at some market value. The associated renewable and environmental attributes are captured as a REC, which represents one megawatt hour of electricity generated from renewable sources and delivered to the grid, is sold separately and has its own market value. RECs can be “counted” only once toward a consumer’s supply and are then retired on behalf of the retail consumer of the RECs. The purchase of RECs ultimately results in an added cash flow for renewable generation—an important financial incentive for the developer/owner of the renewable generation facility. The purchase of RECs promotes the continued development of renewable energy resources and the displacement of electricity generated from fossil fuels.
How do you ensure that RECs are sold only once and retired as promised?
Direct Energy Business currently retains Weaver (in the U.S.) as independent auditors of our REC sales and retirement process. This firm is approved by the Center for Resource Solutions (Green-e) and performs a yearly audit to confirm that all RECs sold by Direct Energy Business in the previous year have been properly documented and retired. In Canada, Direct Energy Business retains PricewaterhouseCoopers (PwC) as an auditor for our green energy tracking and management system. Having this independent oversight provides assurance to customers that the renewable attributes you purchase from us always meet high quality standards and are properly documented and retired as promised.
How much do RECs cost?
RECs are defined in many ways: by source (solar, wind, blend, etc.), by geographic origin (New England, California, New York, national, etc.) and by vintage (the year in which the renewable energy is generated). Prices can range from a national renewable blend product (lowest cost) to a specific region or technology product (highest cost). Vintage, or the year the energy is produced, will also impact price. Direct Energy Business can accommodate consumers and offer RECs tailored to minimize cost or to achieve a specific geographic or technological source. The total cost of RECs will also be affected by the usage as well as the percentage of renewables purchased. Some customers choose to offset 100% of their energy purchases with RECs while others may choose a smaller amount such as 10%.
What is vintage and how does it affect my purchase of RECs?
“Vintage” is the month and year when the renewable energy was generated and supplied to the grid and the corresponding REC created. Depending on the certifying agency, there may be specific requirements around the vintage of a REC as it applies to its sale. In the United States, Green-e sets the vintage standards for the RECs Direct Energy Business purchases and sells to our customers for voluntary renewable initiatives. The RECs that we sell to customers to fulfill their supply requirements during any given calendar year, must have a vintage from Q3 or Q4 of the previous year, Q1-Q4 of the current year and/or Q1 of the following year. So, for RECs purchased for use during 2009, the vintage could be: July-December 2008, January-December 2009 and/or January-March 2010
How do I get a proposal for renewable energy?
Discuss what renewable energy products you wish to purchase with your Direct Energy Business representative. We can tailor a product to suit your needs.
What percentage of renewable energy do/can/should I buy?
There is no "right" answer as the choice depends on the company's level of commitment to purchasing renewable energy. Through the RECs, customers can tailor their renewable energy purchases up to 100%.
I'm already under contract but want to include sustainability into my energy strategy, can it be done?
Yes. RECs can be purchased outside of your energy service so that you can enhance any portion of your present service. Later, if you prefer, your Direct Energy Business representative can assist you with integrating a specific amount of renewable energy into your product mix.
How long is my commitment?
RECs can be purchased for as little as one event (for example, a kickoff meeting) to a percentage of annual (or contractual) consumption.
Will I see any change in the quality of my electricity or natural gas service?
No. RECs support the purchase of renewable energy being uploaded to the grid as well as new renewable projects. The present level of service you've come to expect will continue.
Besides the environmental and energy security benefits associated with renewable energy resources, what other benefits can be achieved through the purchase of renewable energy?
Several added objectives can be achieved by purchasing renewable energy:
- Demonstrating civic leadership by purchasing and supporting renewable energy.
- Meeting organizational environmental and energy objectives.
- Generating positive publicity concerning environmental stewardship and energy security.
For example, the U.S. Environmental Protection Agency (EPA) recognizes businesses that establish voluntary renewable purchases through its Green Power Partners (GPP) Program. The minimum amount of renewable purchase commitment to become a GPP will vary with quantity of electricity consumed.
How do I become an EPA Green Power Partner?
To learn more about becoming an EPA Green Power Partner, visit their website.
What is certified and Green-e® certified renewable energy?
Green-e® Energy was established by the non-profit Center for Resource Solutions to provide information and an objective standard for consumers to compare renewable energy options and to verify that consumers get what they pay for. For more information on Green-e Energy certification requirements, call 1-888-63-GREEN or log on to www.green-e.org.
What are the requirements to use the Green-e logo at my business?
For more information on Green-e Energy certification requirements, call 1-888-63-GREEN or log on to www.green-e.org.
What is Green-e Energy?
Green-e Energy is the nation's leading independent certification and verification program for renewable energy. This voluntary consumer protection program verifies superior, certified renewable energy options offered by retail electricity providers, like Direct Energy Business, in the retail market. When you see the Green-e Energy logo, it means:
- The renewable energy option contains only new renewable resources;
- The sources of energy supplying the renewable options are independently verified by Green-e Energy, operated by the non-profit Center for Resource Solutions;
- The purchaser of a Green-e Energy Certified renewable energy option is the sole "owner" of the environmental attributes of a specific megawatt hour (MWh) of energy added to the grid. Independent verification ensures that no MWh are double counted; and
- The company offering the certified renewable energy option agrees to abide by the Green-e Code of Conduct and Customer Disclosure Requirements governing its ethical treatment of customers.
For more information on Green-e certification requirements, call 1-888-63-GREEN or log on to www.green-e.org.
What is EcoLogo?
In Canada, Direct Energy Business’ Renewable Energy Attributes (RECs) come from EcoLogo-Certified Renewable Power. EcoLogo certifies environmental leaders across North America in more than 120 categories. Founded in 1988, EcoLogo is a well-respected and established multi-attribute environmental standard and certification mark. EcoLogo builds trust by providing scientific credibility and proof of environmental leadership. EcoLogo provides customers—public, corporate and consumer—with assurance that the products and services bearing the logo meet stringent environmental standards that have been verified by a third party auditor. By certifying environmental leaders in over 120 product categories, EcoLogo helps customers find and trust the world’s most sustainable products.
