Scaling up Solutions : Utility Green Rates
Published: 19 January 2023 by Serina Lesnar
This post is part of a serial blog discussing ways corporations can scale their sustainability goals by implementing actionable solutions. Find links to the other posts via my profile or at the bottom of this article.
As we learned already, companies looking to reduce their emissions can take a number of steps to achieve this goal, one of which is to sign up for a green rate with a utility company. By doing so, the company can receive Renewable Energy Certificates (RECs) that demonstrate their commitment to using clean energy.
The process of signing up for a green rate is relatively simple. The company will need to contact their local utility company and express their interest in signing up for a green rate. The utility company will then provide the company with information about the different green rate options that are available (which we will get into in later posts), as well as the associated costs and contract terms.
The cost of a green rate will vary depending on the specific terms of the contract, as well as the amount of energy that the company uses. Some utility companies offer green rate options that are based on a flat rate, while others may offer options that are based on the company’s energy usage. In general, the cost of a green rate is likely to be higher than the cost of a traditional energy rate, but it will also help to offset the cost of using clean energy, and sometimes is more cost effective than procuring unbundled EACs.
The length of the contract for a green rate will also vary depending on the specific terms of the contract. Some utility companies may offer green rate contracts that are for a set period of time, such as one year, while others may offer contracts that are open-ended. In general, the length of the contract will be determined by the company’s specific needs and preferences.
The one drawback to using this method as your sole purchasing option is that if you have contracts with multiple utilities/suppliers, the administration cost and time can be burdensome. It is doable, but make sure you are ready for the time it takes to set all of this up. Once you are up and running, it is quite seamless.
In terms of what a green rate means for a business, it can have a number of benefits. For one, it demonstrates to customers, shareholders and other stakeholders that the company is committed to using clean energy and reducing its carbon footprint. This can help to improve the company’s reputation and brand image, which can in turn help to attract new customers and retain existing ones. Additionally, using a green rate can help to reduce the company’s overall energy costs, which can have a positive impact on the company’s bottom line.
Overall, signing up for a green rate with a utility company is a great way for a company to reduce its emissions and demonstrate its commitment to using clean energy. The process is relatively simple, and the costs and contract terms will vary depending on the specific terms of the contract. By signing up for a green rate, a company can benefit from lower energy costs and improved reputation among customers, shareholders, and other stakeholders.
🧠 What does this mean for you? The journey to decarbonization is rather simple! There are many procurement options to meet your sustainability goals, utility green rates being just one. Make sure to read the upcoming articles discussing other ways to reduce your emissions such as power purchase agreements, carbon offsets, onsite solar and more!
Other Blogs in this series:
Scaling up Solutions: Why Companies must take Action against Climate Change
