Q&A
Q: What is Direct Supply vs. Grid Transfer?
A: Grid Transfer delivers power via the utility’s public grid (most common). Direct Supply uses private lines owned by the generator.
Q: What is Renewable Energy Bundling?
A: It pairs electricity with its environmental certificate as one product, confirming both generation and consumption occurred simultaneously.
Q: How do I purchase renewable energy?
A: Review your annual electricity needs, then contact a renewable energy provider or power retailer to negotiate a Corporate Power Purchase Agreement (CPPA).
Q: How long does it take to get a Renewable Energy Certificate (REC)?
A: Typically 30-60 days after submitting documentation to your regional renewable energy authority.
Q: Do I need new power lines to buy renewable energy?
A: No, your consumption and the generator’s output are matched through the utility’s existing grid using smart meters.
Q: Is renewable energy stable? Will it cause outages?
A: Yes, the utility grid supplies power 24/7, pulling from other sources when renewables aren’t available (e.g., nighttime).
Q: Factors affecting green power costs?
A: Cost includes generation + grid transmission fees + certificate administration + reasonable profit; prices decline as renewable technology matures.
Q: What is renewable (green) electricity?
A: Power from clean sources (solar, wind, hydro, geothermal, biomass) with zero or near-zero carbon emissions.
Q: Why do companies purchase renewable energy?
A: Key drivers: regulatory mandates for large consumers + net-zero commitments + ESG reporting + supply chain requirements.
Q: What contract length is recommended for renewable energy?
A: 5-year contracts offer good balance, long enough for cost savings, flexible enough to renegotiate if needs change.
Q: What are the prerequisites and timeline to purchase renewable energy?
A: Prerequisites: eligible electricity account + time-of-use pricing (usually free) + smart meter. Timeline: 4-8 weeks after prerequisites are met.
Q: How is renewable energy priced?
A: Price depends on contract length, renewable source type, purchase volume, market conditions, and your negotiation with the generator or retailer.
Q&A
Q: When should my facility enter the open renewable energy market?
A: Enter when buyers offer prices above your generation costs, requires stable output and ability to find buyers.
Q: What’s the difference between selling directly vs. using a power retailer?
A: Direct Sales: higher profit, more work. Retailer Model: lower profit, less admin burden, access to larger buyer networks.
Q: How should I choose a power retailer?
A: Look for: strong financial backing + proven buyer network + transparent fee structure + technical support. Check references from other generators.
Q&A
Q: What is Direct Supply vs. Grid Transfer?
A: Direct Supply: private lines from generator to buyer (high capital cost). Grid Transfer: power via public utility grid (most common, cost-effective).
Q: What is grey electricity vs. green electricity?
A: Grey Electricity: fossil fuels (coal, gas, oil) with high carbon emissions. Green Electricity: renewables with zero to near-zero emissions.
Q: Do I need new hardware to purchase renewable energy?
A: Smart meter required if switching to time-of-use pricing (usually free from your utility). No other equipment needed.
Q: Will weather cause power outages from renewable energy?
A: No, the utility grid automatically sources from other generation when renewables are unavailable, ensuring 24/7 stability.
Q: How is my renewable energy consumption calculated?
A: Your utility matches your consumption with the generator’s output during the same time period using smart meter readings.
Q&A
Q: What is a Renewable Energy Certificate (REC)?
A: An official document proving electricity was generated from a renewable source (1 REC = 1 MWh of renewable energy).
Q: How do I obtain Renewable Energy Certificates?
A: Submit consumption records to your regional REC authority + pay a nominal fee (usually $5-20), certificates issued within 30-60 days.
Q: What format are Renewable Energy Certificates issued in?
A: RECs are issued as digital certificates, one certificate represents 1,000 kWh (1 MWh) of renewable energy.
Q: Can I buy or sell RECs independently?
A: Yes, you can buy or sell RECs on certificate trading platforms, separate from physical electricity.
Q&A
Q1: When do carbon fees or carbon pricing take effect?
A: Carbon pricing timelines vary by jurisdiction, check with your local environmental authority for specific implementation dates in your region.
Q2: Who is required to pay carbon fees or carbon taxes?
A: Typically large emitters (emissions above a regional threshold, e.g., 25,000-50,000 metric tons CO2e annually) in energy-intensive industries.
Q3: How are carbon fees calculated?
A: Formula: Carbon Fee = Emissions Subject to Fee × Fee Rate per Ton. Contact your regional authority for your specific fee rate and exemptions.
Q4: What are typical global carbon pricing rates?
A: Rates vary widely ($10-100+ per ton CO2e depending on region and policy). EU: ~€50-80; Canada: $20-50; others lower. Check locally.
Q5: How are chargeable emissions calculated?
A: Chargeable Emissions = (Total Annual Emissions – Applicable Exemptions) × Adjustment Factor. Exemption thresholds and adjustment factors vary by region and industry.
Q6: What is carbon leakage risk?
A: When industries move to regions with weaker climate regulations to avoid higher carbon costs. Specific lists are defined by your local regulatory authority.
Q7: What is the legal basis for carbon pricing?
A: Carbon pricing is based on relevant national climate legislation and carbon pricing frameworks established by your government.
Q8: Should companies develop voluntary emission reduction plans?
A: Strongly recommended, approved reduction plans often qualify for lower carbon fee rates (10-50% discounts depending on region).
Q9: Are carbon fees expected to increase in the future?
A: Yes, rates are expected to rise 5-15% annually through 2030 as nations strengthen climate commitments. Lock in renewable contracts now for price certainty.