A utility tariff or electricity rate which allows a class of customers to source a portion or all of their electricity from new renewable energy projects, typically through long-term contracts with the customer purchasing both the electricity from a renewable energy project and the associated RECs. Often these programs are designed for large customers and typically offer more favorable pricing than retail green pricing programs.
Also known as Renewable Energy Tariff, Sleeved PPA
In states with traditional electricity markets (meaning there is no retail choice of suppliers), customers must work with their default electricity provider to purchase their energy. In these markets, green tariffs are one utility solution for customers to procure renewable energy. Often green tariffs are designed for large customers, may require long-term contracts, and can be designed to drive specific new renewable energy projects. However, the availability and structure of each green tariff program varies by state, and can even vary within a state. For example, within one state, there may be multiple green tariffs from a single electricity utility. There may also be several electric utility providers in the same state with differing green tariff programs. When developing a renewable energy plan, it’s important to understand who your electricity provider is and what green tariff solutions are offered by your utility in your state.
- What green tariffs are available in my state?
- What is the status and eligibility of the green tariff(s)?
SharedRenewablesScorecard.org; SharedRenewables.org; DSIREusa.org; NREL.gov