Here’s how to buy renewable energy from your electric utility
Wind turbines in Dawson, Texas, on Feb. 28, 2023.
Mark Felix | Afp | Getty Images
As carbon emissions from fossil fuels keep warming the planet, eco-conscious consumers may wonder if there’s a way to buy electricity from renewable sources without installing technology like solar panels or windmills on their property.
In short, the answer is yes.
However, the option isn’t necessarily available to all homeowners and renters. It also often comes with a slight price premium, experts said.
Few people are aware they can buy green energy
Renewable energy sources — including 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.
Most, 60%, came from fossil fuels like coal, natural gas and oil. These energy sources release carbon dioxide, a greenhouse gas that traps heat in the atmosphere and contributes to global warming.
The White House aims for electricity generation to be free of greenhouse gas emissions by 2035.
A growing number of individuals and organizations are opting to shift away from fossil fuels: About 9.6 million customers bought 273 Terawatt hours of renewable energy through voluntary green power markets in 2022, according to the National Renewable Energy Laboratory. That’s up fivefold from 54 TWh in 2012.
In the voluntary market, customers buy renewable energy in amounts that exceed states’ minimum requirements from utility companies. Over half of U.S. states have policies to raise the share of electricity sourced from renewables, though most targets are years away.
Voluntary purchases accounted for 28% of the renewable energy market (excluding hydropower) as of 2016, according to the Environmental Protection Agency. They help increase overall demand for renewable electricity, thereby driving change in the energy mix, the EPA said.
Photovoltaic solar panels at the Roadrunner solar plant near McCamey, Texas, on Nov. 10, 2023.
Jordan Vonderhaar/Bloomberg via Getty Images
The bulk of the increase is from corporations, according to NREL estimates. Residential sales have grown, too, but more slowly.
Just one in six U.S. adults know that they may have the option to buy renewable power, either from their electric company or another provider, according to most recent NREL survey data on the topic, published in 2011.
“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, a national laboratory of the U.S. Department of Energy.
“But very few people are aware” they can opt in to green programs, she said. “It’s just not something that’s top of mind for most people.”
How consumers can buy green power
Joe Raedle | Getty Images News | Getty Images
Wind turbines in Solano County, California, on Aug. 28, 2023.
Loren Elliott/Bloomberg via Getty Images
Power companies may offer “green pricing programs,” for instance.
Customers in these programs — also known as utility green power programs — pay their utility a “small premium” to get electricity from renewable sources, according to the U.S. Energy Department.
The cost generally exceeds that of a utility’s standard electricity service by about 1 to 2 cents per kilowatt hour, Sumner said.
That may roughly translate to about $5 to $15 more per month, Sumner said. It will ultimately depend on factors like program price and household energy use, she added.
Nearly half of Americans, 47%, said they were willing to pay more to get their electricity from 100% renewable sources, according to a 2019 poll by Yale University’s Program on Climate Change Communication. On average, they said they would be willing to pay $33.72 more per month.
Green power marketing programs
Consumers in some states can also opt into “green power marketing programs.”
Such states have “competitive” energy markets, meaning consumers can choose from among many different companies to generate their power. (Unlike with “green pricing programs,” the company generating the renewable power may not be the customer’s utility, which distributes the power.)
Residential green power options are available in these states with competitive (also known as “deregulated”) markets: California, Connecticut, Delaware, Illinois, Maine, Maryland, Massachusetts, Michigan, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, Texas and Virginia, according to the U.S. Energy Department and EPA.
These also tend to come with a premium, though in some regions they “may be price competitive with default electricity options,” the agencies wrote.
Community choice aggregation
With “community choice aggregation” programs, local governments buy power from an alternative green power supplier on behalf of their residents.
The municipality essentially operates as the supplier for the community’s electricity, Sumner said. These programs are especially prevalent in California, she said.
Unlike the other program types, residents generally don’t have to opt in to community choice programs; it’s typically automatic and consumers can opt out if they wish, Sumner said.
How renewable energy certificates (RECs) work
A solar farm in Imperial, California, on December 6, 2023.
Valerie Macon | Afp | Getty Images
Just because a consumer opts for renewable power doesn’t mean the electricity being pumped into their home is coming from those renewable sources.
This may sound strange. But it’s due to the physical nature of electricity and its movement through the shared electric grid.
“Once the electrons have been injected into the grid, there’s no way of tagging that these are ‘green’ electrons and these are not green,” said Joydeep Mitra, head of the power system program at Michigan State University. “Nobody knows which electrons are going where.”
Green energy programs instead rely on “renewable energy certificates,” or RECs.
The certificates are essentially an accounting mechanism for the generation and purchase of renewable energy, Mitra said.
You may not be getting the green power — but someone, somewhere is. And RECs keep track of it all.
Any consumer — even one who doesn’t have access to a green power program through their utility — can also purchase a REC as a separate, stand-alone product. It’s a way to provide extra funding to a renewable energy project, typically sold by a broker or marketer rather than a utility, Sumner said.
Buying these certificates separately doesn’t impact a consumer’s existing utility service relationship.
How to verify your electricity is green
Experts recommend choosing a green power option or REC that has been verified by an independent third party.
That’s because the voluntary sales and purchases of renewable energy aren’t subject to government oversight, according to the EPA and U.S. Energy Department.
One such independent body is the Center for Resource Solutions, a nonprofit that oversees the Green-e certification standard, the agencies said.
For example, Green-e polices the disclosures energy suppliers make to consumers about renewable energy, and verifies the purchase of that energy isn’t being counted toward state energy mandates, among other things.
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The Canadian home improvement chain picked up a pair of Volvo VNR Electric semi trucks, and it’s putting them to work on last-mile delivery routes in the Greater Toronto Area.
This month, the Canadian home improvement retailer Home Hardware began operating two Volvo electric semi trucks out of its St. Jacobs, Ontario truck depot. The pair of trucks will fulfill last-mile deliveries throughout the area, and mark the company’s first step towards transitioning its entire fleet to zero-emission vehicles.
The Volvo VNR trucks have an operating range of 442 km (about 275 miles). Their delivery routes will take them from Home-brand stores within a 100-150 km (about 90 miles) radius of the St. Jacobs distribution centre.
“We are proud to introduce our new battery-electric trucks to our privately-owned fleet,” said Kevin Macnab, president and chief executive officer, Home Hardware Stores Ltd. “Recognized by the Private Motor Truck Council as Safest Large Fleet, as well as Trucking HR Canada as a Top Fleet Employer and a Fleet of Distinction, Home Hardware Stores, Ltd. is committed to forward-thinking logistics that evolve our supply chain to best support our dealers so they can serve their communities.”
Home Hardware debuted their new Volvo VNR Electric trucks at the company’s 60th anniversary celebration and annual franchise event, the Home Hardware Homecoming, held last week in Toronto, Ontario, Canada.
Electrek’s Take
Home Hardware is the latest in a growing list of companies – and they’re already adding to the tally of tens of millions of all-electric, zero emission miles driven by Volvo customers. By the time Volvo rolls out its next-generation VNL and FH electric semis next year, it will be the company’s third generation of Class 8 EVs, and it will be backed by more than 100,000,000 miles of real-world data collected by thousands of trucks across dozens of companies.
Is that an insurmountable head start for companies like Tesla to make up? It’s hard to know (and my brain is broken, anyway), but I invite you to check out this episode of Quick Charge recorded a few weeks ago (below) talking about Volvo Truck’s lead, and then share your take on the state of the electric semi truck market in the comments.
Quick Charge
SOURCE | IMAGES: Volvo Trucks.
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The newest edition to the CAA-Quebec roadside fleet is a fully electric Lion5 flatbed – and the CAA says it’s the first 100% electrique tow truck in service in North America!
Based on the Lion5 medium-duty truck and upfit with a flat bed body developed by XpaK Industries, CAA-Quebec (think AAA, but in Quebec) is marking an important milestone in its 80-history with the deployment of the first electric tow truck in Canada.
“Roadside assistance has always been in CAA-Quebec’s DNA, and it goes without saying that we are taking the lead in electric towing. We have a responsibility to set an example and take a leadership role in protecting the environment,” said Marie-Soleil Tremblay, president and CEO.
As far as the truck itself goes, the Lion5 chassis is packed with 210 kWh of in-house, 800V battery packs. Those are good for a range of up to 310 km (a touch over 190 miles) courtesy of an energy-efficient, high-torque electric motor putting 315 hp that Lion Electric claims can eliminate between 75 and 100 metric tons of greenhouse gas per year compared to a comparable diesel truck.
What’s more, the Lion5-based tow truck promises to reduce CAA-Quebec’s energy (read: fuel) costs by about 80%, and regular maintenance costs by about 60% compared to gas or diesel vehicles in the same class.
“With this new 100% electric, made-in-Quebec tow truck, we are helping to redefine the future of the towing industry,” said Patrick Gervais, VP Trucks and Public Affairs at Lion. “We are proud to be part of a cleaner and more sustainable future with players like CAA-Quebec and XpaK.”
The Lion5 tow truck was delivered in July, and will spend a year being put through its paces in a multitude of towing situations and extreme weather conditions. CAA-Quebec’s roadside assistance service will share its experience with partners throughout Canada and the AAA in the US.
Electrek’s Take
“Electrek’s Take” is where we put our industry experience to use interpreting the news we report. Here, in an article about a “first ever” new commercial segment being entered by a highly visible EV, I probably should be talking about operating costs, “dollars and sense,” and the importance of stabilized costs for a fleet manager’s projections.
Instead, I’m just going to picture some bro-dude’s lifted 4×4 Ram pickup getting hauled out of a parking spot he’s ICE’d and giggle a bit. You try it, too, and let me know if it made you smile in the comments section.
SOURCE | IMAGES: Lion Electric, via TowCanada.
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Best known in the US as the OEM behind Nikola, Italian truck brand IVECO entered the 2.5 to 3.5 ton medium duty commercial van segment at this week’s IAA Transportation conference with this: the eMoovy electric chassis cab.
Co-developed with Hyundai and riding on a modified platform of the Korean brand’s Staria ST1 van, the IVECO eMoovy is entering a red-hot commercial EV space with a 215 hp electric motor and either a 63 kWh or 76 kWh battery good for up to 199 miles of range.
The IVECO version leverages the Hyundai’s excellent 800V architecture. That means the eMoovy supports ultra-fast 350 kW charging and V2x functionality, so it can be used to back up a job site, supply power to workers, or even power a home (presumably).
A long time coming
We’ve known than a commercialized IVECO version of the Hyundai van (which isn’t sold as an EV, that I’m aware of) has been in the works for some time. In fact, Peter Johnson wrote about the 2022 deal way back in February.
In that article, Peter wrote that, while Hyundai would develop and build the chassis, IVECO would customize the electric vans to suit broader commercial markets and distribute the vehicles throughout its network. If that sounds familiar, that’s because (on the surface, at least) the deal seems pretty similar to the one IVECO has with Nikola … which begs the question: will Nikola get an eMoovy variant to sell in the US?
The new electric van will directly target Ford E-Transit customers in Europe, so there’s no reason to believe it won’t be an attractive alternative for commercial fleets on this side of the pond, as well – especially with the “big rig” street cred that could come with the Nikola association.
Electrek’s Take
The commercial EV market is driven by dollars and cents. If EVs have a lower total cost of ownership (TCO) than their gas or diesel counterparts? They’ll continue to sell, and their market share will continue to grow. The only question Hyundai and IVECO need to answer is whether North American truck buyers be more likely to buy a Hyundai-branded van, or a Nikola one.
We asked a similar question to Kia’s James Bell on Quick Charge a few weeks back. Listen to his response to those questions, below, then share your thoughts in the comments section at the bottom of the page.
Kia’s James Bell on Electrek Quick Charge
SOURCE | IMAGES: IVECO, CarScoops.
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