Renewable Energy Credits Frequently Asked Questions

Listed below are some of the most frequently asked questions by consumers regarding Renewable Energy Credits. If further explanation or more information is desired, please contact Mandi Lesher at 303.688.3100, ext. 145 or via email at webmaster@intermountain-rea.com with 'REC' as the subject line.

Q. Are RECs tax deductible?
A. The Energy Policy Act of 2005 only offers federal tax credits for the purchase of hybrid vehicles, biodiesel/alternative fuels, and energy-efficient appliances and products. However, this may change with new legislation on the horizon. Please consult with your own tax advisor if you have further questions about the tax deductibility of your contribution.
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Q.   Where does IREA get their RECs from?
A.   In 2007 all RECs (both national wind and national solar) were purchased from a broker called Sterling Planet. Beginning in 2008, our non-solar RECs will be coming from Xcel Energy and our solar RECs will continue to come from Sterling Planet.
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Q.   How does purchasing RECs affect my power bill?
A.  

Purchasing RECs will not affect your power bill in any way. The Renewable Energy Credit Program is a voluntary program in which RECs are purchased to support renewable energy. RECs will not act in any way as a credit toward your utility bill. Purchases made toward RECs are listed as a separate line item on your power bill for easy organization but are in no way associated with your monthly electric usage and charges.
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Q.   What is the difference between green power and REC purchases?
A.   The environmental benefits are the same in both purchases. The difference is in the tracking process. In a green power purchase, the consumer buys renewable energy from a renewable generating facility. This electricity is delivered to the grid, mixed with all other electricity, and is physically impossible to determine who is getting the actual renewable commodity. When you purchase a REC, electricity is delivered the same way while the environmental attributes are sold as RECs. It's an easier and more affordable way to support green power generation.
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Q.   What are the benefits/advantages of purchasing RECs versus green power?
A.  
  • Greater flexibility - consumers aren't restricted by transmission access

  • Cheaper and simplified transaction costs

  • No geographical or physical limitations

  • Greater variety of renewable resources
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Q.   What are renewable energy credits also known as?
A.  
  • Renewable Resource credits

  • Renewable Energy Certificates

  • Tradable Renewable Certificates

  • Green Tags
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Q.   Is this just a donation?
A.   Renewable energy costs more than conventional electricity. The extra amount you pay for wind and solar power goes toward wind farms and solar installations. This helps ensure that renewable energy can be competitive and encourages future developments.
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Q.   Why should I buy RECs from IREA as opposed to a vendor/broker on the Internet?
A.   Due to our volume purchasing, RECs from IREA cost less than what you would pay elsewhere. National wind RECs can be purchased from brokers for approximately 1.5 - 2.0 cents per kWh and national solar RECs from 6.0 - 7.5 cents per kWh. IREA's price for wind is only 1.0 cent per kWh and only 5.5 cents per kWh for solar.
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Q.   How much renewable energy do I get for $5 a month?
A.  

It depends on which renewable resource you choose. At our price of 1.0 cent per kWh hour for wind, $5 will purchase 500 kWh ($5/0.01) worth of wind RECs. At 5.5 cents per kWh for solar, $5 will purchase just shy of 182 kWh ($5/0.055) worth of solar RECs.
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Q.   Can I purchase RECs if I rent?
A.   Yes because the residence you live in still uses electricity from IREA. Therefore you can still help offset your electric use. Use this online energy calculator to estimate your electricity usage.
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Q.   Can I change my monthly purchase amount?
A.   Yes. We realize that financial circumstances and priorities can change. However another form will need to be filled out indicating the new amount and must still be at least $5 to participate in the program.
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