Green Energy Credits - What Are They and How Can They Be Used
There is a massive push underway in the United States to focus more on green energy.
It is an effort to use more renewable, clean power such as solar or wind power instead of traditional methods like coal or gas that cause harmful emissions that damage the environment.
Through this push for renewable energy the concept of green energy credits has emerged.
The credits are like a pseudo-currency that apply to the renewable energy market.
They can be bought and sold as a commodity by just about anyone.
The credits represent stake in renewable energy.
Essentially a single credit means 1,000 kWh of certified renewable energy was produce and distributed into the power grid.
Certified renewable energy can come from a number of sources such as solar, wind, geothermal or some small forms of hydro-powered.
The credits are designed to provide incentive to power companies to get some of the electricity they distribute from renewable energy sources and are seen as the primary way of tracking just how much is obtained and distributed.
Credits are given to any provider for every 1,000 kWh they produce.
Each credit is numbered so there are no duplicates and they act as a sort of certificate of authenticity.
Once obtained the credit can then be sold on the open market.
Holding a credit is the only way to certify and prove that green energy was used.
This forms the backbone of the green credit market.
The primary buyers of credits are power companies themselves.
That is because in more than two-dozen states power companies are required by law to obtain a certain percentage of the electricity they supply from a renewable energy source.
Since the only way to prove such a thing is by holding a corresponding amount of credits the power companies buy those credits from the suppliers, be it third-party windfarms or owners of solar power farms or so forth.
Even a household with solar panels on its roof collecting electricity could sell energy credits provided they generate enough each month to qualify for one.
Once the power companies purchase these credits they are used to show compliance to the state regulators.
In the remaining states there can be any number of buyers for credits.
Businesses can purchase them as an investment strategy, using green energy to power their services.
Other organizations use the purchasing power as incentive to get private individuals to try their hand at renewable energy production.
The entire concept is meant to drive interest nationwide in the green energy movement.
By utilizing a monetary system it not only allows for proper compliance where necessary but also gets everyone on even ground when it comes to getting involved in the process.
It is an effort to use more renewable, clean power such as solar or wind power instead of traditional methods like coal or gas that cause harmful emissions that damage the environment.
Through this push for renewable energy the concept of green energy credits has emerged.
The credits are like a pseudo-currency that apply to the renewable energy market.
They can be bought and sold as a commodity by just about anyone.
The credits represent stake in renewable energy.
Essentially a single credit means 1,000 kWh of certified renewable energy was produce and distributed into the power grid.
Certified renewable energy can come from a number of sources such as solar, wind, geothermal or some small forms of hydro-powered.
The credits are designed to provide incentive to power companies to get some of the electricity they distribute from renewable energy sources and are seen as the primary way of tracking just how much is obtained and distributed.
Credits are given to any provider for every 1,000 kWh they produce.
Each credit is numbered so there are no duplicates and they act as a sort of certificate of authenticity.
Once obtained the credit can then be sold on the open market.
Holding a credit is the only way to certify and prove that green energy was used.
This forms the backbone of the green credit market.
The primary buyers of credits are power companies themselves.
That is because in more than two-dozen states power companies are required by law to obtain a certain percentage of the electricity they supply from a renewable energy source.
Since the only way to prove such a thing is by holding a corresponding amount of credits the power companies buy those credits from the suppliers, be it third-party windfarms or owners of solar power farms or so forth.
Even a household with solar panels on its roof collecting electricity could sell energy credits provided they generate enough each month to qualify for one.
Once the power companies purchase these credits they are used to show compliance to the state regulators.
In the remaining states there can be any number of buyers for credits.
Businesses can purchase them as an investment strategy, using green energy to power their services.
Other organizations use the purchasing power as incentive to get private individuals to try their hand at renewable energy production.
The entire concept is meant to drive interest nationwide in the green energy movement.
By utilizing a monetary system it not only allows for proper compliance where necessary but also gets everyone on even ground when it comes to getting involved in the process.
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