5 Facts about Green Energy Credits

Green energy credits were developed to help shift energy production to more renewable sources. Using traditional methods of energy production increases our reliance on fossil fuels and non-renewable sources of energy. Therefore, the importance of green energy credits is at an all-time high. Here are a few facts about green energy credits. 

1. Their Function Is to Allow Access to Green Energy

The main function of green energy credits is to allow those who wish to buy energy from renewable sources to buy it. When a renewable energy company produces power and puts it into the energy grid, there is really no way to determine which energy is from renewable sources and which one is not. Therefore, the green energy credits allow renewable energy providers to sell their energy directly to consumers. The green energy credits can be sold, traded, or bartered directly from the energy company to the public. Companies that place an emphasis on green energy can then purchase these credits from the producer and claim that they are buying green energy.

2. Issued by Government

The companies that produce green energy are given their credits by participating state governments. For each 1000 kWh that the company produces, they are given one credit. To understand how much this is, the average consumer in the United States uses about 800 kWh per month. The company can then sell the credits for whatever price they choose.

3. Renewable Sources

There are several sources of energy that qualify for the green energy credits. This allows a number of different companies to get in on the program. Solar power, wind power, geothermal energy, low-impact hydropower, biofuels, and hydrogen fuel cells. Any of these sources of energy qualify as long as they are made in a state that permits the green energy credit program.

4. Largest Users

Many different entities use power created with Renewable Energy Credits. The government office that uses the most energy from these credits is the Environmental Protection Agency. In the corporate world, Intel is the largest buyer with over a million MWH per year. In the educational sector, the University of Pennsylvania in Philadelphia is the largest buyer. All of these entities buy enough green energy credits each year to take care of all of their power needs.  

5. Tracking Systems

The tracking of Renewable Energy Credits is a very detailed part of the process. Each energy credit is given a distinct tracking number. Therefore, no two energy credits are the same. This way, they can track the path of the credit from its originator to the end user. This prevents any unethical practices in the area of energy credits. 

There are even a number of third-party companies that are designed to check the entire process. They audit the process from several different energy producers and make sure that everything is done in the correct manner. These companies provide a level of integrity to the industry.