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?
A renewable generator produces energy and the associated renewable and environmental attribute. The electricity is typically sold into the grid at some market value. The REC is sold separately and has its own market value. For example, solar RECs are more valuable than wind RECs. The RECs can be counted only once and retired by the retail consumer of the RECs. The purchase of RECs ultimately results in an added cash flow and 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 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%.

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.