Clean Energy: The Basics

What Is Clean Energy?

Clean energy is electricity generated from a renewable resource—such as wind, sunlight, methane from landfills, or sustainable biomass—that emits little or no pollution in the generation process. In contrast, fossil fuels like coal, oil, and gas aren't considered clean because of the pollution associated with their extraction from the earth and with the combustion process used to generate the power. The gases emitted when fossil fuels are burned include air pollutants and greenhouse gases.

Why Clean Energy?

Much of the electricity supplied to American homes today is generated by burning fossil fuels. As a result, the average American home that uses standard electricity generates more greenhouse gases and pollution in a year than an average car generates during the same period!

Switching to clean energy sources helps to:

• Reduce the amount of fossil fuel used to operate the machinery that mines coal, oil, and gas and moves them to power plants
• Reduce pollution and greenhouse gases by reducing the amount of coal, oil, and gas burned to create electricity
• Boost the renewable energy market and increase regional demand for clean energy
• Generate new jobs and revenue in clean energy generation, transmission, and installation
• Encourage innovation in clean energy technology
• Reduce your personal environmental footprint
• Wean the nation away from its dependence on foreign countries as sources of oil and gas

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How Much Does Clean Energy Cost?

At present, clean energy supplied by local utilities costs you (the consumer) about the same as "standard" power (electricity generated by traditional sources such as oil and coal). However, this has not always been the case. In the past clean energy was a little more than standard power. Why? Historically, renewable energy sources haven't received the same government subsidies and support as coal, oil, and gas to cover the costs of production and transport. Therefore, renewable energy generators have to set higher prices to cover their production expenses.

The table below shows price estimates for standard electricity and for electricity from a clean energy source (in this case, wind), as well as the relative environmental impact of the two types of electricity. Please note that the prices for clean energy and standard power will fluctuate over time, and the chart below represents a snapshot of possible prices. Please check updated prices on clean energy suppliers’ web sites for detailed information.

The table below shows price estimates for standard electricity and for electricity from a clean energy source (in this case, wind), as well as the relative environmental impact of the two types of electricity. The subsidy from the Clean Energy Rewards Program in Montgomery County is also shown.

^a Cost per month for standard electricity is Pepco's published residential rate (PDF, 1 pg, 29K)
^b Based on regional fuel mix for electricity generation
^c The costs of clean energy products are averaged across participating suppliers. The actual cost of clean energy varies depending on the supplier and product selected (i.e., 100% wind power or 50% wind power). Prices valid as of April 1, 2010.

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How Do I Buy Clean Energy?

The energy market in Maryland is deregulated, so you can choose your energy supplier and the type of energy you want to buy. If you haven't already entered into a contract with a competitive electricity supplier, you can switch suppliers today. If you already have a contract, be sure to check it before you switch products or suppliers! To avoid penalties, you might have to wait until your current contract expires to change suppliers.

Once you have chosen a supplier, you can buy clean energy online. All you need is your utility account number and your address, and you can sign up for clean energy through the supplier's Web site. The supplier will contact you by mail to confirm the change.

Third-party regional transmission operators (PJM-GATS for Maryland) and government regulators (Maryland Public Service Commission) ensure that energy suppliers have clean energy available for your use.

Learn more about energy deregulation and choosing an energy supplier through the Maryland Attorney General's Web site.

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How Does Clean Energy Get to My Home or Business?

There are two ways to get clean energy to your home or business:

• Purchase clean energy through your local utility
• Install solar panels or other renewable energy technology on your home.

Purchasing Clean Energy

You don't need to install special equipment to receive clean energy. By choosing a competitive energy supplier, you choose to buy a percentage (or all) of your electricity from clean energy sources like wind or solar. This clean energy is delivered to your house by your local utility, in the same way it provides regular energy.

The diagram below shows how energy moves from energy generators to your home. Electricity generated from nuclear, coal, wind, and other sources is transferred to the energy grid. Your local utility company (BG&E, Pepco, or Allegheny Power) or your clean energy supplier purchases power from the electricity generators. This electricity is transmitted through the grid to your area and the utility company distributes it to your home.

Energy moves from energy generators to your home through the energy grid.

Though some of the energy available in the grid was generated using a renewable resource, this clean energy can't be distinguished from the millions of other electrons flying through the wires to reach your home or business. The electricity grid is like a big pool being filled with water from many hoses. The hoses are the different types of energy sources—coal, nuclear, wind, solar, etc. Once the water is in the pool, you can't tell which hose it came from; once the electricity is in the grid, you can't identify its source.

Energy suppliers can influence how much energy is transferred to the grid from each source by selectively purchasing energy from different generators. If, for example, an energy supplier purchases more energy from a generator that produces electricity from a renewable source, such as wind, more of the electricity available in the energy grid will come from a clean energy source (as shown in the figure below).

Energy suppliers influence the types of energy supplied to the grid.

By purchasing clean energy through a competitive energy supplier, you're creating a market for renewable energy and pushing energy suppliers to purchase more energy from clean energy generators. You're directly affecting the amount of clean energy available in the grid and supporting energy generators that produce sustainable, renewable energy!

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