For most cities, the financial impact of subscribing to a green tariff plays a major role in the decision of whether to participate and how to implement the program.
The costs related to using a green tariff program and how the green tariff is applied to the city’s electricity consumption varies by program. It may also vary between cities subscribing to the same program depending on the green tariff structure.
To assess the financial impact, it is helpful to first identify your current rate and fees for traditional or default electric service – this is your baseline, or point of comparison. If your city is already participating in a renewable energy program, the costs and benefits of participation in that program should be taken into consideration as well.
Program Components That Influence Price
Although each green tariff differs, there are some common program components that determine the overall financial impact: