A NEW GREEN DEAL
Reliant tries to sell its plan on renewable energy credits.
Reliant Energy, the retail electricity provider owned by NRG Energy, has a green new deal for customers interested in offsetting their carbon footprint. But the offer might not do much to save the planet.
Customers can pay an extra $6.99 a month to Reliant which, in turn, will buy renewable energy credits so customers can offset all of their electricity use with solar energy. It’s a way for consumers to support solar power without having to install solar panels, Reliant says.
But will the plan really move the needle and spur investments in new solar farms? Or is it just another feel-good way for Reliant and other retail electricity providers that offer similar plans to generate more revenue by appealing to consumer desire to be more environmentally friendly?
“It’s all greenwashing,” said Fred Anders, the founder of Texas Power Guide in Houston, a website that helps electricity shoppers find the cheapest power plans. “This is generally a way for retailers to up-charge people and earn a higher margin.”
Big companies buy renewable energy credits as proof they’re buying renewable energy, even ifthe power that flows into their factories and stores actually comes from a nearby coal plant. The credits allow companies to say they’re green — in a very cost-effective way. That’s because the credits are cheap to buy in states like Texas, where renewable energy — especially from wind farms — is so prevalent.
Some of the cheapest plans on the state-run Power to Choose energy-shopping website offer 100 percent renewable energy, a claim they can make because they’re backed with renewableenergy certificates that add an almost imperceptible cost to the price per kilowatt hour, Anders said.
Reliant said it will buy renewable energy certificates from green energy producers in Texas and around the country for customers who add the $6.99 a month “Make it Solar” program to their existing Reliant power plan. Customers already enrolled in a solar plan wouldn’t benefit because they’re already investing in renewable energy, according to Reliant.
When Reliant buys the certificates from renewable energy generators such as solar farms, it is providing a revenue stream those developers and operators can count on, ultimately supporting existing projects and helping create new ones, said Reliant spokeswoman Megan Talley. When more people choose solar power, that increases the demand for renewables, she said.
But is buying renewable-energy credits from existing power plants really a good bang for your buck?
A better way to spend that $7 monthly charge might be to invest in energy-efficient light bulbs, energy-efficient windows or a smart thermostat. You’d probably save more money and be a better help to the environment.