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Why "100 percent green" supplier plans are not always greener

Solar + renewables →

A 100 percent green plan often means RECs are bought to offset normal grid power. That is not new generation. The Green-e standard plus 4 vetting questions.

Harry Parker

Energy Consultant, Seenra Inc

Solar + renewables10 min readPublished

Featured infographic

REC-only green plan vs new generation

REC-only: existing renewable claim shuffles. New generation: actual new buildout. The additionality difference.

Open graph image · /og/rec-flow.png

Many 100 percent green residential supplier plans bundle RECs with normal grid electricity to claim renewable status. REC-only green plans do not necessarily build new renewable generation. The plan is greener than no-REC but does not directly add capacity. Green-e certification verifies the RECs represent new renewable generation. Look for Green-e on any green plan before paying a green premium.

How REC-only green plans work

The customer pays a small green premium (0.5 to 1.5 cents per kWh). The supplier buys RECs in volume to match the customer kWh and retires them on the customer behalf.

The actual electricity flowing to the customer home is grid-mix electricity. The renewable claim comes from the retired REC, not from physically-delivered renewable energy.

Green-e certification check

Green-e Energy certifies RECs represent new renewable generation (built within 15 years) and verifies the chain-of-custody.

Look for Green-e on any green plan. Non-Green-e green plans may bundle old hydro RECs or other low-additionality renewables. The Scope 2 claim is the same but the additionality is not.

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Common questions

Quick answers from the editorial desk

REC-only vs new build?
REC-only retires existing renewable claims. New-build PPAs fund new generation. Both support Scope 2 but only new-build adds capacity.
What is additionality?
The principle that your renewable purchase causes new renewable generation to be built. REC-only purchases have weak additionality; PPA contracts have strong additionality.
Is Green-e certification required?
Not legally required but the gold standard for voluntary REC markets. Most reputable green plans are Green-e certified.
Does this affect my personal Scope 2?
For household-level reporting, REC-only green plans still support a market-based Scope 2 claim. The additionality concern matters most for corporate ESG reporting.

Further reading

Pillar guide, cluster siblings, and state pages cited above

Sources

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