Step 1: Choose the type of Clean Energy right for you. 

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Clean Electricity

Renewable Energy Certificates (RECs)

Generating Electricity On-site

Estimating your Clean Energy Reward

There are three clean energy options through the Clean Energy Rewards program:

1. Make the switch to clean energy by changing your electricity supplier.
2. Purchase renewable energy certificates (RECs) in addition to electricity.
3. Install solar panels or other renewable energy technology on your home or business.

Or, click here if you ready to SIGN-UP FOR CLEAN ENERGY NOW!

About Making the Switch to Clean Energy

HOW DO I KNOW I’M GETTING CLEAN ENERGY?

Similar to investors that acquire several different sources to create an investment portfolio, energy suppliers make agreements with several electricity generators to ensure electricity supply.  The electricity you currently use is mainly generated from coal and nuclear sources.  When you buy clean energy, such as wind or solar generated electricity, you are requesting that the energy supplier choose only clean energy sources for the electricity you use (see picture below). 

Suppliers are required by law to identify their clean energy generation sources, track how much electricity was purchased and used by their customers, and prove that the amount of clean energy used was purchased from renewable sources.  This guarantees your money is going to clean energy generators.

HOW MUCH DOES CLEAN ENERGY COST?

Clean energy prices are fluctuating and now clean energy costs less than regular electricity!  Here is an example of the average costs and savings realized through Clean Energy Rewards. 

	Cost per kilowatt-hour (kWh)	Total Cost per Month (1,000 kWh)	Total Cost after Rewards	Environmental Impact
Standard Electricity	$0.1176	$117.60	$117.60	1,293 lbs. carbon dioxide, 8 lbs. sulfur dioxide, 3 lbs. nitrogen dioxide*
Average Monthly Cost** (100% wind power)	$0.12	$120	$115	0

*Based on regional fuel mix for electricity generation.
**Cost of clean energy products are averaged across participating suppliers.  Actually cost of clean energy will vary per supplier and product selected, i.e., 100% wind power, 50% wind power, etc.  Prices updated 4/3/09.

Use your “Energy Usage History” on your electricity bill to gauge what clean energy will cost you per month.  Are you having trouble understanding your electricity bill?  Click here for an example bill.

WHY DOES CLEAN ENERGY COST MORE THAN STANDARD ELECTRICITY?

Clean energy costs more than standard electricity because clean renewable energy generation sources do not receive the same incentives and subsidies from the federal government as coal and other generation facilities.  To be competitive in the market and be able to reinvest in new projects, renewable energy generators must charge a slightly higher rate for electricity. 

Additionally, the market values technologies that do not produce pollution.  Therefore, renewable energy sources are valued higher than fossil fuels sources and command a premium price.  This is analogous to premium coffee – you can get coffee anywhere, but you will often pay more for Starbucks™.  The same can be said for clean energy.  It is a premium product that does not pollute and therefore is more valuable than regular electricity.

HOW WILL I BE BILLED FOR CLEAN ENERGY?

When you change to a clean energy supplier you will still get a bill from the utility (PEPCO, BG&E, Allegheny Power) for the distribution portion of your service.  The generation and transmission charges will appear on the same bill, but will be from the clean energy supplier.  All charges will be on the utility bill so you will not have to keep track of additional paperwork. 

I’m ready to sign-up for clean electricity! 

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Renewable Energy Certificates (RECs) is clean energy, but in another form.  RECs are similar to carbon offsets in the sense that they cancel out the pollution caused by electricity generated from fossil fuels.  When you purchase RECs equal to the amount of electricity you use, you support clean energy generation sources, like wind farms, and offset greenhouse gases emitted by polluting electricity generation sources. 

WHAT ARE RECs?

RECs represent the environmental benefits of producing 1,000 kilowatt-hours of electricity from clean sources instead of producing the same amount of electricity from fossil fuel sources.  The benefit is that we don't pollute our air, water and soils by generating electricity.  See the chart above for the environmental impact of standard electricity generation.      

RECs are purchased in addition to electricity so you will still get electricity from your utility company but you will offset that electricity generation by supporting renewable energy sources.  Or, if your electric bill is paid through your rent or lease, buying RECs is a great way to get clean energy and offset your electricity use. 

RECs are generated to account for the amount of clean energy that is sent into our electric grid.  Clean energy generators will still sell their electricity to energy suppliers, but they might have to sell it at a discounted rate to compete with more heavily subsidized fuel sources.  RECs allow the clean energy generator to recoup some of the lost revenue on the sale of the electricity (see picture above).  This helps to maintain the viability of the clean energy generator and allows the consumer to claim the right to the environmental benefits, or carbon offsets.  

WHAT DO RECs COST?

RECs cost between 1.85 and 2.5 cents per kWh equivalent (as of 4/3/09) depending on the type of REC you choose (wind, solar, sustainable biomass, or a mix).  With rewards RECs cost 1.35 and 2 cents per kWh equivalent. 

HOW MANY RECs SHOULD I PURCHASE TO OFFSET MY ENERGY USE?

Clean Energy Rewards encourages consumers to offset at least 50% of your electricity use with RECs.  Not sure how much electricity you use a month?  Use this chart to estimate.

Type of Home	1-2 Bedroom Apt., Townhouse, or Single-family house	3-4 Bedroom Townhouse or Single-family house	4+ Bedroom Single-family house
Estimated Monthly Electricity Use (kWh)	500	1,000	1,500
Estimated Annual Electricity Use (kWh)	6,000	12,000	18,000
100% Electricity Use Offset (kWh equivalent)	6,000	12,000	18,000
50% Offset -- Minimum REC purchase to receive rewards (kWh equivalent)	3,000	6,000	9,000

WHO BUYS RECs?

Anyone interested in reducing their environmental impact, regardless of whether electricity service is paid through their rent of lease.  Major companies and several U.S. government agencies purchase RECs, as well as homeowners, renters, and students.  Buying RECs creates a market for renewable energy sources and allows you to offset your environmental impact from the electricity you use. 

I’m ready to sign-up for RECs!

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Do you have solar photovoltaic panels on your home?  Click here.

Are you thinking about installing solar panels on your home?  Click here.

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Updated April 3, 2009.