Review Key Program Terms: Benefits and Risks
Learning about the structure and components of a green tariff program will help you evaluate potential benefits, costs, and challenges of participation for your city.
There are three main categories of green tariff structures:
- Physical PPAs, contracted via the Utility (or Sleeved PPAs), which grant customers access to individual renewable energy projects via physical PPAs facilitated by the utility;
- Subscriber programs, which grant participating customers access to portions of a larger renewable energy project or a blend of resources; and,
- Market-based rate programs, which allow a city to participate in a wholesale market transaction through their utility. Under this structure, the customer enters a separate transaction for renewable energy from an off-site project, and the rate on the bill aims to closely reflect that market pricing.
The table below identifies the key considerations and specific examples for each type of structure.