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 Zimmerman at 303-688-3100 ext. 145 or via our email inquiry form with "Renewable Energy Credits" as the subject line.
| Q. |
 |
Are RECs tax deductible? |
| A. |
|
No information favoring this has been found thus far. The Energy Policy Act of 2005 (EPACT) only offers federal tax credits for the purchase of hybrid vehicles, biodiesel/alternative fuels, and energy-efficient appliances and products. However, this may change as the act continues to be extended and amended. For an overview of the consumer energy tax incentives associated with the act, please visit http://www.energy.gov/taxbreaks.htm.
Please also consult with your own tax advisor if you have further questions about the tax deductibility of your contribution. |
|
|
Back to top |
|
|
|
| Q. |
|
Where does IREA get their RECs from? |
| A. |
|
Our Wind RECs are generated in Colorado and Wyoming and are supplied by Xcel Energy. Our National Solar RECs are generated in various places throuout the United States and are supplied by Sterling Planet. |
|
|
Back to top |
|
|
|
| Q. |
|
How does purchasing RECs affect my power bill? |
| A. |
|
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 nor will they affect your power usage in any way. 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. |
|
|
Back to top |
|
|
|
| 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 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. |
|
|
Back to top |
|
|
|
| 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
|
|
|
Back to top |
|
|
|
| Q. |
|
What are renewable energy credits also known as? |
| A. |
|
- Renewable Resource Credits
- Renewable Energy Certificates
- Tradable Renewable Certificates
- Green Tags
|
|
|
Back to top |
|
|
|
| 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. |
|
|
Back to top |
|
|
|
| Q. |
|
Why should I buy RECs from IREA as opposed to a vendor/broker on the Internet? |
| A. |
|
IREA is able to pass savings onto our REC buyers because of the discounts we received in bulk purchasing. While prices can vary daily, IREA strives to give the consumers competitive prices. In addition IREA does not add charges onto the sale price of the RECs as can be typical in a broker arena. |
|
|
Back to top |
|
|
|
| Q. |
|
How much renewable energy do I get for $5 a month? |
| A. |
|
Please remember that purchasing RECs help support renewable energy, but it does not mean that energy is delivered to your residence. 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. 1 MWH (or 1,000 kWh) equals 1 REC.
Some consumers simply choose their purchase amount based on a budget, others purchase an amount that will equal their electric usage. If the latter iterests you, simply refer to your past electric bills for your energy usage or use this * online energy calculator to estimate it.
*(Source: "http://www.consumerspower.org/home_energy/billestimator.php") Several factors determine a household's energy consumption. The calculator's purpose is for estimation and IREA makes no claims to its accuracy. |
|
|
Back to top |
|
|
|
| Q. |
|
Can I purchase RECs if I rent? |
| A. |
|
Yes. Anyone interested in supporting renewable energy is welcome to sign up. |
|
|
Back to top |
|
|
|
| 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. |
|
|
Back to top |
