Reducing greenhouse gases (GHG) is something everyone can help out with, and it can have a lasting impact on the environment. Here we will take a look at carbon offsets and renewable energy certificates (RECs) to distinguish the difference between the two and how people can support them.
Carbon Offsets
A carbon offset is an action related to the reduction in emissions of carbon dioxide or other greenhouse gases. Another term for carbon offset is verified emission reduction (VER).
- Measured in metric tons of carbon dioxide (CO2) or CO2 equivalent.
- One VER equals one metric ton of CO2 emissions avoided or removed from the atmosphere.
- Addresses research and development for greenhouse gas.
- Requires testing to ensure the offset has at least reached the level of emissions caused.
Carbon offsets are more likely to be used by large companies or corporations that have a high amount of carbon emissions.
Renewable Energy Certificates
RECs help to reduce the carbon footprint through an investment to support the development of renewable energy, such as wind and solar farms. Investors can purchase RECs and profit from the energy that’s produced by that resource.
- Measured in megawatt-hours (MWh).
- One REC represents one MWh of renewable energy. One MWh is equal to 1,000-kilowatt-hours (kWh).
- 1,000 kWh is roughly how much it takes to power the average home for one month.
- Encourages the use, maintenance, and expansion of renewable energy sources.
- Enables the purchase of grid-sourced energy.
RECs can be purchased by anyone who wishes to use energy from clean renewable resources. Every REC comes with a unique ID number, which is used for tracking. This ensures the investor of where their energy comes from and that no one else can use that purchased REC. They must be used by the purchaser, no reselling.
RECs are a great way to fund the advancement of future renewable energy projects. The more money that is pumped into RECs the greater the effect it will have to help us ultimately do away with high carbon-emitting fossil fuels.
A report by the Green Power Partnership and the United States Environmental Protection Agency detailed how the voluntary purchase of RECs, have much more far-reaching benefits than RECs that are purchased only to achieve regulatory compliance.
Purchasing RECs
Individuals can purchase RECs to guarantee the power they’re using comes from a renewable energy source, but it doesn’t have to be from your state. They can be purchased from anywhere in the U.S. If you buy RECs from a state with a voluntary market, then it would be cheaper than buying from one with a compliance market.
If you want to help out local green power programs, you can call your supply company and ask about locally sourced RECs. If low-cost is important you can look into purchasing RECs from states where fossil fuel use is more common than renewable energy generation. Buying RECs in this way will help to support the growth of renewable energy projects.
Green pricing and green marketing models are normally structured in three ways.
Fixed Energy Quantity Block
Customers can purchase as many “blocks” of energy as they want. Normally blocks are offered in 100 kWh units and you can purchase enough to cover one month or a portion. You pay a fixed monthly price for the electricity.
Percentage of Monthly Use
This is when you purchase a percentage of your monthly electricity use. Generally speaking, these types of plans end up using a mix of green energy and conventional energy sources.
Long-term Fixed Price Contracts
These are normally reserved for large purchasing agreements from governments of universities. These are fixed-price contracts over longer periods. Possibly 10 years or more. This provides stable electricity for years.
To find out how you can get involved and purchase RECs, contact your local energy provider and inquire, also look into which states offer voluntary RECs.
