NREL is a national laboratory of the U.S. Department of Energy, Office of Energy 

Efficiency & Renewable Energy, operated by the Alliance for Sustainable Energy, LLC.

Contract No. DE-AC36-08GO28308

Status and Trends in U.S. 

Compliance and Voluntary 

Renewable Energy Certificate

Markets (2010 Data)

Jenny Heeter and Lori Bird

Technical Report

NREL/TP-6A20-52925

October 2011
NREL is a national laboratory of the U.S. Department of Energy, Office of Energy 

Efficiency & Renewable Energy, operated by the Alliance for Sustainable Energy, LLC.

National Renewable Energy Laboratory

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Contract No. DE-AC36-08GO28308

Status and Trends in U.S. 

Compliance and Voluntary 

Renewable Energy Certificate

Markets (2010 Data)

Jenny Heeter and Lori Bird

Prepared under Task No. SAO9.3110

Technical Report

NREL/TP-6A20-52925

October 2011
NOTICE

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iii

Acknowledgments

This work was funded by the U.S. Department of Energy’s (DOE’s) Office of Energy Efficiency 

and Renewable Energy (EERE). The authors wish to thank Linda Silverman and the EERE 

technology programs for their support of this work. The authors also wish to thank Collin 

Donnelly of the National Renewable Energy Laboratory (NREL) for his assistance with utility 

and market data collection. For their thoughtful review of the document, the authors thank Blaine 

Collison of the U.S. Environmental Protection Agency; Ed Holt of Ed Holt & Associates, Inc.; 

Bridgett Neely of Green Mountain Energy; Rachael Terada and Alex Pennock of the Center for 

Resource Solutions; and Lynn Billman, Claire Kreycik, Joyce McLaren, and Robin Newmark of 

NREL, as well as Mary Lukkonen of NREL for her editorial support. Finally, the authors thank 

the many green power marketers and utility contacts who provided the information summarized 

in this report. 

Additional information on green power market trends and activities can be found on the DOE’s 

Green Power Network website at http://greenpower.energy.gov. 
iv

List of Acronyms

ACP alternative compliance payment

aMW average megawatt

CEC California Energy Commission 

CO2e carbon dioxide equivalent 

CPUC California Public Utility Commission

CRS Center for Resource Solutions 

DOE Department of Energy 

EDC electric distribution company

EERE Energy Efficiency and Renewable Energy 

EIA Energy Information Administration

EPA Environmental Protection Agency

ERCOT Electric Reliability Council of Texas

FTC Federal Trade Commission

GATS Generation Attribute Tracking System 

GHG greenhouse gas

GIS Generation Information System 

IOU investor-owned utility 

ISO independent system operator 

kW kilowatt 

kWh kilowatt-hour 

LSE load-serving entity

MI-RECS Michigan Renewable Energy Certification System

MISO Midwest Independent System Operator

M-RETS Midwest Renewable Energy Tracking System

MW megawatt

MWh megawatt-hour 

NARR North American Renewables Registry

NC-RETS North Carolina Renewable Energy Tracking System 

NEPOOL-GIS New England Power Pool-Generation Information 

System 

NREL National Renewable Energy Laboratory 

NVTREC Nevada Tracks Renewable Energy Credits

NYSERDA New York State Energy Research and Development 

Authority 

OREC offshore wind renewable energy certificate

PJM-GATS PJM-Generation Attribute Tracking System

PUC public utility commission 

REC renewable energy certificate

RPS renewable portfolio standard

RTO regional transmission organization

SMUD Sacramento Municipal Utility District

SREC solar renewable energy certificate

WECC Western Electricity Coordinating Council 

WREGIS Western Renewable Energy Generation Information 

System 
v 

Executive Summary

This report documents the status and trends of U.S. “compliance” markets—renewable energy 

certificate (REC) markets used to meet state renewable portfolio standard (RPS) requirements—

and “voluntary” markets—those in which consumers and institutions purchase renewable energy 

to match their electricity needs on a voluntary basis. Compliance and voluntary REC markets 

continue to exhibit growth and provide an important stimulus for renewable energy development. 

Voluntary green power markets provide an additional revenue stream for renewable energy 

projects and raise consumer awareness of the benefits of renewable energy. Based on this review, 

the following key trends have been identified: 

• In 2010, RECs required for compliance outpaced voluntary REC sales for the first 

time. Compliance demand in 2010 is estimated at 55 million MWh, while voluntary 

demand totaled 35.6 million MWh (Figure ES-1). Compliance demand is expected to 

grow to more than 150 million MWh, or more than 40,000 MW, by 2015. 

Figure ES-1. Comparison of compliance and voluntary markets for new renewable energy, 

2005–2010

• For the most part, states have been achieving RPS policy targets using RECs, though 

some shortages have existed. “Compliance” in this sense means meeting the 

requirements using RECs. In the future, states are expected to be more fully in 

compliance, particularly because in 2010, compliance REC prices declined in most 

markets, with prices stabilizing in early 2011 to less than $20/MWh in most markets. 

Massachusetts and Rhode Island REC prices increased in mid-2011 to nearly 

$30/MWh. 

• Solar REC (SREC) markets are relatively young but are expected to grow rapidly in 

coming years as state solar requirements ramp up. Of the 10 jurisdictions that allow 

and anticipate the use of SREC trading, SREC trading is expected to increase from 

more than 520 MW in 2011 to nearly 7,300 MW in 2025. SREC prices dropped in 

2011 in most markets to less than $200/MWh, except Massachusetts and Ohio instate, where pricing remains in the $400–$550 range. Pricing for SRECs is higher 

than RECs because of state carve-out policies, higher technology costs, and higher 

alternative compliance payment (ACP) levels. 

0 

10

20

30

40

50

60

2005 2006 2007 2008 2009 2010

Millions of MWh annually

Compliance (new renewables)

Voluntary 
vi 

• In 2010, total retail sales of renewable energy in voluntary markets exceeded 

35 million MWh, an increase of 11% in 2010 (18% from unadjusted 2009 figures) 

(Figure ES-2). Wind energy continues to provide the most renewable energy to 

voluntary markets at 83.1% of total green power sales. 

Figure ES-2. Estimated annual voluntary sales by market sector, 2006–2010

• Community solar programs have been growing recently and are supported by state 

policies in Colorado and Washington. Programs have been developed by utilities and 

third parties to enable customers to purchase a share of a solar array and receive the 

benefits of the energy that is produced by their share. 

• Overall, the total number of residential and non-residential customers voluntarily 

purchasing green power increased by approximately 25% in 2010, with gains coming 

from the competitive market in Texas and the residential REC market. 

• In voluntary markets, both Green-e Energy and the U.S. Environmental Protection 

Agency’s (EPA’s) Green Power Partnership have increased their threshold for what is 

considered “new” renewable energy. Previously, “new” was defined as facilities put 

into service on or after January 1, 1997, which is generally considered to be the 

inception of the voluntary green power market. Both Green-e Energy and EPA have 

announced that they will transition to a rolling “new date” in 2011 and 2012, 

respectively. 

• The Federal Trade Commission’s proposed revised Green Guides clarify how 

organizations can make defensible renewable energy claims. 

• The Dodd-Frank Act enables the Commodities Futures Trading Commission (CFTC)

to regulate “swaps,” “swap dealers,” and “swap participants,” but the CFTC has not 

yet developed final regulations that may specify whether RECs would fall under its 

regulation. 

0 

5 

10

15

20

25

30

35

40

2006 2007 2008 2009 2010

Annual green power sales 

(millions of MWh)

Unbundled REC Markets

Competitive Markets

Utility Green Pricing
vii 

Table of Contents

List of Figures ..........................................................................................................................................viii

List of Tables ..............................................................................................................................................ix

1 Introduction ........................................................................................................................................... 1

2 Compliance REC Markets .................................................................................................................... 3

2.1 REC Trading ................................................................................................................. 5

2.2 Regional REC Markets ................................................................................................. 6

2.3 REC Tracking Systems ................................................................................................. 8

2.4 Solar and Other Types of Compliance RECs ............................................................. 10

2.5 REC Pricing in Compliance Markets ......................................................................... 13

2.6 Achieving Compliance Targets .................................................................................. 16

2.6.1Quantity of RECs Retired ................................................................................... 17

3 Voluntary REC and Green Power Market.........................................................................................19

3.1 Voluntary Market Sales .............................................................................................. 20

3.1.1 Utility Green Pricing Sales ................................................................................ 22

3.1.2 REC and Competitive Market Sales .................................................................. 23

3.1.3 Residential and Nonresidential Customer Sales ................................................ 24

3.1.4 Capacity Equivalent of Green Power Sales ....................................................... 24

3.2 Voluntary Market Customer Participation ................................................................. 25

3.2.1 Utility Green Pricing Participation .................................................................... 26

3.2.2 Competitive Market Participation ...................................................................... 27

3.2.3 Unbundled Voluntary REC Market Participation .............................................. 28

3.3 Voluntary Market Products and Premiums ................................................................ 28

3.3.1 Utility Green Pricing Products and Premiums ................................................... 28

3.3.2 Unbundled REC and Competitive Market Products and Pricing ....................... 29

3.4 Green Pricing Marketing and Administrative Expenses ............................................ 31

3.5 REC Pricing in Voluntary Markets ............................................................................ 32

3.6 The Voluntary Carbon Offsets Market ....................................................................... 33

4 Market Issues and Trends .................................................................................................................35

4.1 Federal Trade Commission’s Proposed Guidance on Renewable Energy Claims ..... 35

4.2 Community Solar Programs ....................................................................................... 36

4.3 Potential Dodd-Frank Act Regulation of RECs ......................................................... 38

5 Conclusions and Observations.........................................................................................................39

References.................................................................................................................................................41

Appendix A. Leading Purchasers in the EPA Green Power Partnership............................................47

Appendix B. Estimated U.S. Green Pricing Customers and Sales by State .......................................48

Appendix C. Top 10 Utility Green Pricing Programs.............................................................................52
viii

List of Figures 

Figure ES-1. Comparison of compliance and voluntary markets for new renewable energy, 

2005–2010........................................................................................................................... v

Figure ES-2. Estimated annual voluntary sales by market sector, 2006–2010 .............................. vi

Figure 1. State RPS policies map .................................................................................................... 3

Figure 2. Initial compliance year for state RPS policies ................................................................. 4

Figure 3. Historic and projected estimated demand for new renewable energy due to state RPS 

requirements, 2010–2020 .................................................................................................... 4

Figure 4. Comparison of compliance and voluntary markets for new renewable energy, 2005–

2010..................................................................................................................................... 5

Figure 5. Renewable energy tracking systems in North America .................................................. 9

Figure 6. SRECs issued in PJM-GATS, 2010 .............................................................................. 12

Figure 7. Compliance market (Tier 1) REC prices, January 2007–August 2011 ......................... 14

Figure 8. Compliance market SREC spot prices, August 2009–September 2011 ........................ 15

Figure 9. RECs retired for RPS compliance in PJM states, 2010 ................................................. 18

Figure 10. Utility green power and competitive market sales by state, 2009 ............................... 19

Figure 11. Estimated green power sales by renewable energy source, 2010 ................................ 20

Figure 12. Estimated annual voluntary sales by market sector, 2006–2010 ................................. 22

Figure 13. Residential and nonresidential voluntary sales, 2006–2010....................................... 24

Figure 14. Trends in utility green pricing premiums, 2002–2010 ................................................ 29

Figure 15. Estimated average marketing and administrative costs for utilities’ tracking expenses 

(responding 4 or 5), 2010 .................................................................................................. 32

Figure 16. Voluntary REC prices, January 2008–August 2011.................................................... 33

Figure 17. Cumulative capacity of community solar programs, January 2006–June 2011 .......... 37

 
ix

List of Tables

Table 1. Geographic Eligibility and Delivery Requirements .......................................................... 7

Table 2. REC Tracking Systems Overview .................................................................................... 9

Table 3. Export/Import Capability of REC Tracking Systems ..................................................... 10

Table 4. Capacity Required in SREC Markets (MW) .................................................................. 12

Table 5. Estimated Annual Voluntary Sales by Market Sector, 2006–2010 (Millions of MWh) . 21

Table 6. Estimated Cumulative Renewable Energy Capacity Supplying Green Power Markets, 

2008–2010 (MW).............................................................................................................. 25

Table 7. Estimated Cumulative Green Power Customers by Market Segment, 2006–2010 ........ 26

Table 8. Total Retail Sales of Green-e Energy Certified Renewable Energy, 2009 and 2010 

(Thousand MWh) .............................................................................................................. 31

Table 9. GHG Offsets Sourced from U.S.-Based Renewable Energy Sources, 2008–2010 ........ 34

Table 10. Historical Development of Community Solar Offers ................................................... 37

Table A-1. Top 25 Purchasers in the EPA Green Power Partnership Program, April 6, 2011 .... 47

Table B-1. Estimated U.S. Green Pricing Customers by State and Customer Class, 2008 and 

2009................................................................................................................................... 48

Table B-2. Estimated U.S. Green Pricing Customers by Customer Class, 2002–2009 ................ 50

Table B-3. EIA Estimated U.S. Green Pricing Sales by State (MWh), 2009 ............................... 51

Table C-1. Green Pricing Program Renewable Energy Sales (as of December 2010) ................. 52

Table C-2. Green Pricing Program Total Number of Customer Participants (as of December 

2010) ................................................................................................................................. 53

Table C-3. Green Power Sales as a Percentage of Total Retail Electricity Sales (in kWh) (as of 

December 2010) ................................................................................................................ 54

Table C-4. Price Premium Charged for New, Residential Customer-Driven Renewable Power (as 

of December 2010) ........................................................................................................... 55

Table C-5. Customer Participation Rate (as of December 2010) ................................................. 56
1 

1 Introduction

Growth in renewable energy development over the past decade has led to the increasing 

adoption of renewable energy certificates (RECs) as a means to track and trade the 

environmental benefits of renewable energy generation. RECs can be sold either 

unbundled (separate from electricity) or bundled (included with the sale of electricity).

RECs are used in both compliance and voluntary markets to meet obligations to purchase 

renewable energy, substantiate claims, and as a mechanism to transfer attributes from one 

party to another. 

“Compliance” markets refer to RECs that can be used to meet state renewable portfolio 

standard (RPS) requirements. As of October 2011, 29 states, Puerto Rico, and 

Washington, D.C., have adopted RPS policies, or requirements that retail electricity 

providers obtain a certain fraction of their electricity from renewable energy sources. 

Most of these policies establish ultimate targets for the penetration of renewable energy 

in 2015, 2020, and 2025, often with interim targets as well. Generally, ultimate targets 

call for utilities or obligated entities to procure renewable energy to satisfy between 10% 

and 30% of retail electricity sales, although policies vary considerably. Most states allow 

or require the use of RECs to demonstrate compliance with RPS targets. The use of RECs 

emerged to simplify contracting, facilitate compliance tracking, and enable trading 

among obligated entities, resulting in a more efficient flow of capital to renewable energy 

projects. RECs procured in the compliance market can be either bundled with electricity 

or unbundled. 

“Voluntary” markets for renewable energy, or “green power” markets, are those in which 

consumers and institutions purchase renewable energy to match their electricity needs on 

a voluntary basis. Entities can make voluntary purchases of renewable energy through 

utility green power programs and green power marketing activities in competitive 

electricity markets, as well as in unbundled REC markets. RECs are generally present in 

all of these types of products, but in some cases the RECs are bundled at the wholesale 

level with electricity and provided to the consumer, while in others, entities may purchase 

RECs at retail separate from electricity. Nevertheless, all of these approaches are covered 

in this report: 

• Utility Green Pricing (regulated utility markets). Utility green pricing 

programs began in the early 1990s when a small number of utilities offered 

options to their customers. These programs are offered by utilities in 

traditionally regulated electricity markets. Today, more than 860 utilities offer 

green power programs to their customers. As a result, more than half of U.S. 

electricity customers have an option to purchase some type of green power 

product directly from a retail electricity provider. In utility green pricing 

programs, RECs are obtained by the utility and offered to customers. Utilities 

differ in how they procure RECs for their green pricing programs but often 

enter into power purchase agreements for the energy and RECs. In other 

cases, they may procure unbundled RECs. 
2 

• Competitive Green Power (competitive utility markets). In states with 

competitive (or restructured) retail electricity markets, electricity customers 

can often buy electricity generated from renewable sources by switching to an 

alternative electricity supplier that offers green power. In some of these states, 

default utility electricity suppliers offer green power options to their 

customers in conjunction with competitive green power marketers so that 

switching is not required. More than a dozen states that have opened their 

markets to retail competition have experienced some green power marketing 

activity.1

• Voluntary Unbundled REC Market (separate from electricity). Regardless of 

whether customers have access to a green power product from their retail 

power provider, they can purchase green power through unbundled RECs. 

More than 25 companies offer unbundled RECs to retail customers via the 

Internet, and a number of other companies market RECs solely to commercial 

and wholesale customers.2

The data on voluntary market trends presented in this report were formerly reported in the 

annual report, Green Power Marketing in the United States: A Status Report (Bird and 

Sumner 2010).3 Voluntary market data are based primarily on figures provided to the 

National Renewable Energy Laboratory (NREL) by utilities and independent renewable 

energy marketers. NREL also supplements this data with information from REC 

certifiers, REC tracking systems (see ERCOT 2011), and press releases describing large 

voluntary green power purchases. Because data cannot be obtained from all market 

participants, the estimates presented here likely represent an underestimate of the market 

size. Data on the competitive markets is particularly challenging to obtain due to market 

sensitivity and rapid changes in offerings; therefore, estimates of the competitive market 

are more uncertain.

This report documents REC activities and trends in the United States. First, the 

compliance REC market is addressed, including discussions of REC trading, regional 

REC markets, REC tracking systems, types of compliance RECs, and compliance REC 

pricing trends, as well as an overview of compliance with RPS polices. Second, the 

voluntary REC market is addressed, presenting data and analysis on voluntary market 

sales and customer participation, products and premiums, green pricing marketing and 

administrative expenses, voluntary REC pricing, and the voluntary carbon offsets market. 

The report concludes with a discussion of key market trends and issues: upcoming 

guidance from the Federal Trade Commission (FTC) on green marketing claims, the 

emergence of community solar programs, and the potential impact of Dodd-Frank

regulations on the REC market.

 

1 States with competitive offerings include Connecticut, Delaware, Illinois, Maine, Maryland, 

Massachusetts, Michigan, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, Texas, and 

Washington, D.C. 

2 For a current list of companies offering voluntary REC products, see the DOE’s Green Power Network 

website: http://apps3.eere.energy.gov/greenpower/markets/certificates.shtml?page=2. 3 Voluntary market data from previous years is captured in earlier versions of the report including: Bird et 

al. 2009; Bird et al. 2008; Bird et al. 2007; Bird and Swezey 2006.
3 

2 Compliance REC Markets

To date, 29 states, Puerto Rico, and Washington, D.C., have adopted RPS policies 

(Figure 1). Another eight states have nonbinding goals to increase the amount of 

renewable energy in the electric generation mix. Policies vary considerably; California, 

Colorado, and Minnesota have the highest standards. California calls for 33% 

renewables by 2020, Colorado requires 30% renewables by 2020 for investor-owned 

utilities (IOUs), and Minnesota’s largest IOU, Xcel Energy, is required to obtain 30% 

renewables by 2020.

 

Figure 1. State RPS policies map

While some of these policies have existed for more than a decade, a number of others are 

in early stages of implementation. Of the 31 jurisdictions that have an RPS, 7 (Hawaii, 

Kansas, Michigan, Missouri, North Carolina, Oregon, and Washington) will have their 

first compliance year in 2010 or later (see Figure 2). Several states have nearly 10 years 

of implementation experience (Connecticut, Maine, New Jersey, Nevada Pennsylvania, 

Wisconsin, Minnesota, New Mexico, and Texas). 
4 

Note: Puerto Rico’s RPS takes effect in 2015.

Figure 2. Initial compliance year for state RPS policies

RPS policies call for an increasing amount of renewable energy in coming years. New 

generation required by RPS policies is estimated to be more than 150 million MWh, or 

more than 40,000 MW, by 2015 (Figure 3). In capacity terms, 40,000 MW of new 

generation is equivalent to approximately 3.9% of anticipated electric power capacity in 

2015.4 Note that some states provide multipliers for generation that can be used to meet 

RPS compliance. For example, Colorado offers a bonus of 25% to generation located instate. These policy details have been incorporated into the analysis. The largest state 

markets in 2020 for new renewables required include California, Illinois, Texas, 

Minnesota, and New Jersey (Figure 3).5

 

Figure 3. Historic and projected estimated demand for new renewable energy due to state 

RPS requirements, 2010–2020 

 

4 Based on the EIA’s Annual Energy Outlook 2011 reference case total electric power capacity of 

1,025.3 GW (EIA 2011c). 5 These figures are based on state requirements, not accounting for early action by states. Texas has already 

reached its 2015 requirement of 5,880 MW. 

 - 

50,000 

100,000 

150,000 

200,000 

250,000 

300,000 

RPS demand for new renewables (GWh)

Rest of States

WA

PA

OH

NJ

MN

TX

IL 

CA 
5 

Historically, the size of the voluntary market has slightly exceeded the compliance 

demand for new renewables (Figure 4). However, in 2010, the compliance market called 

for utilities to procure about 55 million MWh of new renewable energy generation 

(Barbose 2010), a large increase from 2009.6 This is because many states set significant 

targets for 2010. Voluntary green power market sales totaled about 35.6 million MWh in 

2010. Figure 4 shows that between 2005 and 2009, voluntary market demand slightly 

exceeded compliance market demand for new renewable energy. In 2010, compliance 

demand for new renewable energy generation exceeded voluntary demand, and the gap is 

expected to grow in future years. By 2015, compliance demand for new renewable 

energy due to existing state RPS policies is expected to be more than 150 million MWh; 

voluntary market growth rates would have to increase to keep pace. 

Note: Estimates of compliance market demand assume that RPS targets are fully met.

Figure 4. Comparison of compliance and voluntary markets for new renewable energy, 

2005–2010

2.1 REC Trading

In order to facilitate compliance with RPS policies, most RPS states allow or require 

REC trading.7 Trading is more common in the eastern United States, where restructured 

electricity markets prevail. Because customers can switch utility suppliers in restructured 

electricity markets, future electricity load is often uncertain. Therefore, obligated utilities 

in restructured states are more likely to purchase RECs in short-term increments. (For 

more on this topic, see Holt et al. 2011.) 

 

6 Although RPS policies generally allow pre-existing renewable energy generation sources (i.e., those 

installed prior to the adoption of the RPS) to meet their targets, the estimates presented here reflect only the 

amount of new renewable energy generation that these policies are expected to stimulate. These figures are 

compared to the voluntary market estimates because voluntary markets primarily support generation from 

new renewable energy projects (i.e., those installed after voluntary green power markets were established). 

Estimates of compliance market demand assume that RPS targets are fully met. 7 Unbundled RECs cannot be used in Iowa, Arizona, or Hawaii for RPS compliance. Iowa adopted its 

standard before RECs existed and has already met its requirement (Holt and Wiser 2007). 

0 

10

20

30

40

50

60

2005 2006 2007 2008 2009 2010

Millions of MWh annually

Compliance (new renewables)

Voluntary 
6 

In the western United States, RECs are more commonly used as a verification tool. 

Utilities in the western United States primarily operate in regulated markets and use 

RECs as a means to demonstrate compliance with RPS policies. Western utilities may 

contract for renewable energy through a power purchase agreement, and in doing so, also 

contract for the RECs. Utilities may also own their renewable facilities, in which case, 

RECs will accrue as long as the utility does not sell them to another party. 

The western REC trading market may become more active in future years as California 

begins to allow some use of unbundled RECs from outside of California to count towards 

its RPS. California’s expanded RPS, which was signed into law in April 2011 and 

increases the obligation of utilities to 33% by 2020, clarifies the role of RECs. In the first 

compliance period (through 2013), unbundled RECs are allowed to contribute not more 

than 25%. In the second compliance period (2014–2016), unbundled RECs can only be 

used for not more than 15% of a utility’s obligation, and after 2016, unbundled RECs are 

limited to not more than 10%. (California SBX 1 2) 

2.2 Regional REC Markets 

Regional REC markets exist in some parts of the country because many state RPS 

policies define regionally delivered RECs as eligible to meet state requirements 

(Table 1). The primary regional markets for RECs exist in New England and the MidAtlantic states. All New England states with an RPS allow RECs to come from within or 

be delivered to Independent System Operator New England (ISO New England), the 

wholesale electricity market for the region. Similarly, most states with RPS policies in 

the PJM-Interconnection allow for RECs to come from within or be delivered to PJM. 

These regional geographic restrictions have resulted in the creation of regional REC 

trading markets. Other states require that electricity be delivered to or generated in-state, 

which limits the level of REC trading. 

In addition to regional markets, a small national market for RECs exists in both the 

compliance and voluntary markets, though it is more common for voluntary purchasers to 

buy nationally sourced RECs. Only three RPS states have no restrictions on the 

geographic source of RECs, and each offer a bonus to in-state generation. In both 

Colorado and Missouri, there are no restrictions on the location of RECs; however, instate generation receives 125% credit under each RPS policy. In Kansas, in-state 

megawatts receive 110% credit. Some states (California, Illinois, Ohio, North Carolina, 

and Michigan) allow part of the RPS requirement to be met with out-of-state generation. 

In Illinois, the preference for in-state generation is set to expire after 2011. Until then, 

there is a cost-effectiveness test: in-state resources must be used unless there are 

insufficient resources. If that is the case, then RECs from adjoining states may be used, 

and if those are not cost effective, then RECs from other regions may be used. After 

2011, in-state and adjoining state generation is treated equally, but if insufficient costeffective resources are available, then RECs from outside that area may be used. 
7 

Table 1. Geographic Eligibility and Delivery Requirements 

Delivered to region requirement

CT Within New England ISO or from NY, PA, NJ, MD, or DE if the Connecticut Department of Public 

Utilities determines these states have an RPS comparable to Connecticut's.

DC Located in adjacent state’s ISO; must deliver to region. Load-serving entities (LSEs) may also 

purchase unbundled RECs from states that are adjacent to PJM. 

DE Generators anywhere outside region must deliver electricity to region. 

MA Located in adjacent state’s ISO; must deliver to region.

MD Located in adjacent state’s ISO; must deliver to region. LSEs may also purchase unbundled RECs 

from states that are adjacent to PJM.

ME Generators anywhere outside region must deliver electricity to region. 

MN RECs must originate in the Midwest Renewable Energy Tracking System region.

NH Located in adjacent state’s ISO; must deliver to region.

NJ Generators anywhere outside region must deliver electricity to region. 

OR Unbundled RECs must originate from the U.S. portion of the Western Electricity Coordinating Council 

(WECC) region; electricity deliveries must come from the U.S. portion of WECC and be delivered to 

the LSE.

PA Within PJM or Midwest ISO (in areas served by MISO).

RI Located in adjacent state’s ISO; must deliver to region. 

WA Deliver electricity to region if outside region. If outside Pacific Northwest, delivery to state.

In-state or delivered to state requirement

AZ Electricity delivery to state or LSE.

HI Must be in-state generation.

IA In-state generation requirement but allows location in broader utility service area.

MT Electricity delivery required to state or to LSE.

NM Electricity delivery required to state or to LSE.

NY Electricity delivery required to state or to LSE; strict hourly scheduling to state and strong preference 

for in-state resources in solicitation process.

NV Direct transmission inter-tie between generators and state; allows limited sharing of transmission 

inter-tie with other generators.

TX Direct transmission inter-tie between generators and state; disallows sharing of transmission inter-tie 

with other generators.

WI Electricity delivery required to state or to LSE; projects must be owned by or under contract to LSE.

Partial in-state requirement

CAa Up to 25% of requirement can be met with unbundled RECs from outside California through 2013.

IL Cost-effectiveness test: in-state unless insufficient cost-effective resources, then from adjoining 

states, then from other regions; after 2011, equal preference to in-state and adjoining states.

OH At least 50% of the renewable energy requirement must be met by in-state facilities, and the 

remaining 50% with resources that can be shown to be deliverable into the state.

NC Up to 25% compliance can be met with unbundled RECs from outside the state (no limit for one LSE, 

Dominion); remainder must be in-state or delivered to LSE.

MI Generally, RECs may be obtained from in-state facilities or from out-of-state facilities located within 

the retail electric service territory of a utility (or subsequent expansions) as recognized by the public 

service commission. Alternative electric suppliers are generally not permitted to meet the standard 

using out-of-state resources. 

No restrictions

CO No restriction on location of RECs creation.

KS No restriction on location of RECs creation.

MO No restriction on location of RECs creation.b 

a In 2014–2016, 15% of the requirement can be met with unbundled RECs from outside of California, and in 

2016 onward, 10% of the requirement can be met with unbundled RECs from outside of California

(California SBX 1 2). b Rules developed by the Missouri Public Service Commission to implement Missouri’s RPS originally 

required that renewable energy must be delivered into Missouri; however, Missouri’s Joint Committee on 

Administrative Rules voted to disapprove that rule. 

Sources: DSIRE 2011; Wiser and Barbose 2008
8 

2.3 REC Tracking Systems

States have created REC tracking systems to verify compliance with RPS targets. These 

electronic tracking systems ensure that RECs are only “retired” (used to meet 

compliance) once by assigning a unique serial number to each megawatt-hour of 

renewable energy generation, which constitutes a REC. The systems also track the 

attributes of RECs, such as the type of renewable energy facility (e.g., wind or biomass), 

the project location, and the generation date. 

In compliance markets, tracking systems are used by both obligated utilities and by 

public utility commissions (PUCs) that oversee compliance. Utilities use the systems to 

manage their REC portfolios, transfer RECs to others, and ultimately to demonstrate 

compliance with the RPS by transferring RECs into retirement accounts. RECs deposited 

into retirement accounts can no longer be traded. PUCs use retirement accounts to verify 

the number of RECs a utility is using to comply with RPS requirements. Tracking 

systems are also used in voluntary markets, though their use is not as predominant as in 

compliance markets. The Green-e Energy certification program, a leading certifier and 

auditor of RECs in the voluntary market, allows green power suppliers to use tracking 

systems to simplify some parts of the Green-e audit process. The use of tracking systems 

to meet Green-e Energy requirements has increased in the past few years (Terada 2011). 

In the United States, there are currently nine different tracking systems (Table 2). 

Tracking systems operate primarily on a regional basis, since many state RPS policies 

allow RECs from regions to contribute. REC tracking systems in some cases follow the 

same boundaries as local regional transmission organizations (RTOs) or ISOs (Figure 5). 

The Texas Renewable Energy Credit Program, started in 2002, was the first system to 

launch. Since then, the number of systems has grown and tracking systems now exist, 

which together cover all 50 states. Regional systems serve groups of states: New England 

Power Pool-Generation Information System (NEPOOL-GIS) serves New England; PJMGeneration Attribute Tracking System (GATS) serves areas of PJM Interconnection, 

mostly in the Mid-Atlantic; Western Renewable Energy Generation Information System 

(WREGIS) serves western states; and the Midwest Renewable Energy Tracking System 

(M-RETS) serves the Midwest. 

In addition to the regional systems, some tracking systems have been developed to serve 

a particular state. Individual state systems include the Texas Renewable Energy Credit 

system, Nevada Tracks Renewable Energy Credits (NVTRECS), Michigan Renewable 

Energy Certification System (MI-RECS), and the North Carolina Renewable Energy 

Tracking System (NC-RETS). Finally, the North American Renewables Registry 

(NARR) was created in 2009 to track any state or province not covered by one of the 

other tracking systems. Missouri has elected to use NARR to track compliance with 

its RPS. 
9 

Table 2. REC Tracking Systems Overview

Tracking 

System

Primary Region(s) Launch 

Date

Texas 

Renewable 

Energy Credit 

Program

Texas January 

2002

NEPOOL-GIS New England July 2002

PJM-GATS Delaware, Indiana, Illinois, Kentucky, Maryland, Michigan, New 

Jersey, North Carolina, Ohio, Pennsylvania, Tennessee, 

Virginia, West Virginia, and Washington, D.C.

Sept 2005

WREGIS Alberta, Arizona, British Columbia, California, Colorado, Idaho, 

Montana, Nebraska, Nevada, New Mexico, Oregon, Texas, 

Utah, Washington, and Wyoming

June 2007

M-RETS Illinois, Iowa, Manitoba, Minnesota, Montana, North Dakota, 

South Dakota, and Wisconsin

July 2007

NVTREC Nevada 2007/2008

NARR States and provinces not covered by the regional markets February 

2009

MI-RECS Michigan October 

2009

NC-RETS North Carolina 2010

Source: Updated from ETNNA 2011

Note: NARR covers states and provinces not covered by a NYSE Blue tracking system.

Note: Nevada uses both NVTREC and WREGIS.

Figure 5. Renewable energy tracking systems in North America
10 

The ability of tracking systems to transfer RECs in and out of their system (exporting or 

importing of RECs) has increased over the past few years (see Table 3). Transfer 

capability is important because some states allow RECs from other states to be used to 

meet state RPS targets. For example, in North Carolina, 25% of compliance can be met 

with RECs from out of state (anywhere in the United States). North Carolina established 

its own REC tracking system, which can now receive RECs from NARR, M-RETS, 

WREGIS, and the Electric Reliability Council of Texas (ERCOT). REC import/export 

capability may also be important for the voluntary market. This additional functionality 

has been improved due in part to the fact that one service provider, APX, Inc. (now 

NYSE BlueSM), developed most of the regional REC tracking systems. 

Table 3. Export/Import Capability of REC Tracking Systems

Exporting From Exporting To

NARR NC-RETS

NC-RETS NARR

MIRECS NARR

MIRECS PJM-GATS

M-RETS NARR

M-RETS NC-RETS

M-RETS MI-RECS

PJM-GATS MI-RECS

WREGIS NARR

WREGIS NC-RETS

ERCOT NC-RETS

Source: NARR 2011

Tracking systems can be important providers of public market information. They can 

provide information on the number of RECs retired in a given year. The Texas PUC has 

encouraged public access to REC market data by requiring ERCOT to report annually the 

aggregate quantity of RECs retired for voluntary and compliance purposes. In the current 

reporting year, confidentiality is ensured to account holders, which may be retiring 

compliance or voluntary RECs, but after one year, confidentiality is expired, and ERCOT 

documents how many RECs were retired by each account holder.8 PJM-GATS also

recently developed a public report on RPS retired certificates by reporting year.9 This 

report allows users to see how many RECs were retired in a PJM state in a given 

compliance year, as well as the resource type (e.g., solar or wind) and the state where the 

REC was generated. 

2.4 Solar and Other Types of Compliance RECs 

In addition to a primary, or “Tier 1,” compliance obligation, many state RPS policies 

encourage the use of specific types or vintages of renewable or alternative energy 

generation through a secondary, “Tier 2,” obligation. Also, a number of states have 

 

8 ERCOT’s Annual Report on the Texas Renewable Energy Credit Trading Program can be found at 

https://www.texasrenewables.com/reports.asp. 9 PJM-GATS RPS Retired Certificates (Reporting Year) public report can be found at http://www.pjmeis.com/reports-and-news/public-reports.aspx. 
11 

technology-specific carve outs, primarily for solar but also for distributed generation or 

offshore wind. 

Tier 2 requirements, often referred to as “Class 2” or “Tier II” requirements, typically 

include alternative resources such as trash-to-energy facilities, certain types of hydro, or 

older renewables facilities. New Jersey adopted an offshore wind REC program in 2010 

that requires a certain percentage of electricity come from offshore wind projects. In 

order to facilitate this program, the New Jersey legislature created offshore wind RECs

(ORECs). 

Solar or distributed generation carve outs exist in 17 jurisdictions (DSIRE 2011), and 10

of these jurisdictions have opted to allow the use of solar renewable energy certificates 

(SRECs) to facilitate compliance with solar targets (Bird et al. 2011).10 New Jersey was 

the first to rely heavily on SRECs as a market mechanism for encouraging solar energy 

development and meeting its solar carve out. Initially New Jersey established a rebate 

program to incentivize systems, but due to the high cost and constraints on the state 

budget, switched to a market-based SREC program in 2007 (Hart 2010). Thereafter, a 

number of states in the Mid-Atlantic and surrounding regions have used SRECs to enable 

obligated entities to meet their solar carve outs. 

Of the 10 jurisdictions that allow and anticipate the use of SREC trading, the solar carve 

outs are scheduled to grow from more than 520 MW in 2011 to nearly 7,300 MW in 

2025. Targets for solar generation vary from 0.2% to 3.5% of retail electric sales. New 

Jersey has dominated the SREC market to date, requiring approximately 320 MW of 

solar capacity in 2011 and climbing to more than 4,000 MW in 2025 (see Table 4). 

However, SREC requirements in other states are growing, and projects are being 

implemented in a broader region. The next largest near-term markets are Massachusetts, 

Pennsylvania, and Ohio. The Maryland market, while relatively modest in 2011, is 

scheduled to increase rapidly, making it the fourth largest market by 2015 and second 

largest market after New Jersey in 2020. 

 

10 For more information on SREC markets and trends, see Bird et al. 2011.
12 

Table 4. Capacity Required in SREC Markets (MW)

State 2011 2015 2020 2025

DC > 3 63 146 240

DE 10 69 162 261

MA 69 299 312 312

MD 22 179 693 958

MO 11 28 59 93

NC 18 121 181 190

NH 6 22 23 24

NJ 319 829 1,825 4,053

OH 31 155 363 553

PA 33 264 546 567

Total > 522 2,029 4,310 7,251

Note: Most states have annual targets based on a percentage of retail electric sales. These estimates use 

the megawatt-hour target and convert it to megawatts using default capacity factors in PVWatts.11 The 

capacity factors used assume that there is a 0.77 derate from direct current to alternating current kilowatts, 

that systems are south-facing, and that the tilt is equal to the latitude of the state. The Massachusetts solar 

requirement, while not based on a percent of retail sales, requires a cumulative installment of 400 MW of 

solar capacity. These figures assume that Massachusetts’s solar requirement is not adjusted for under- or 

over-supply. 

Note: In Washington, D.C., the 2011 compliance obligation is uncertain because contracts entered into 

before July 12, 2011, are exempt from the District’s increased solar requirement. This analysis assumes that 

existing contracts will expire before 2015 (Council of the District of Columbia 2011).

Source: Barbose 2011, with updates

The vast majority (75%) of SRECs issued within the PJM Interconnection in 2010 were 

sourced from New Jersey, according to data from PJM-GATS (Figure 6). The next most 

active states serving as a source of retired SRECs are Pennsylvania, Ohio, and Maryland. 

PJM data provide a good indication of activity as most states with SREC policies are in 

the PJM balancing authority, but a few states—Massachusetts, Missouri, and North 

Carolina (in some instances)—are outside of PJM and use separate tracking systems.12

Source: PJM-GATS 2011b

Figure 6. SRECs issued in PJM-GATS, 2010

 

11 http://www.nrel.gov/rredc/pvwatts/. 12 PV systems in North Carolina must choose whether to register in the NC-RETS or the PJM-GATS 

system. 

NJ, 75%

PA, 11%

OH, 6%

MD, 4%

DE, 3%

Other, 1%
13 

In some western states, SRECs are used to track compliance with solar carve outs, but 

there is no active trading market. In some cases SRECs may be sold into voluntary 

markets in which consumers, businesses, and institutions purchase renewable energy 

equivalent to their electricity needs, although SRECs have played a limited role in these 

markets to date. 

2.5 REC Pricing in Compliance Markets

This section is an overview of wholesale REC prices in compliance markets in recent 

years based on indicative data available from brokers and third-party data providers. With 

a few exceptions, there is little price transparency in REC markets. Most transactions are 

conducted as bilateral contracts between parties, and prices are not reported. In addition, 

prices can vary widely by region. Therefore, data presented here are only indicative and 

should be used with caution. 

In general, REC values depend on a number of factors, including the technology, the 

vintage (year in which it was generated), the volume purchased, and the region in which 

the generator is located. Natural gas prices can also affect the cost competitiveness of 

renewable energy generation, which is reflected in REC prices. 

The region from which RECs are sourced is particularly important because often there 

are regional differences in renewable energy resource quality (e.g., wind speed) and 

electricity prices that determine the cost effectiveness of the renewable generation. In 

addition, the supply and demand of RECs often varies regionally. In 2010, REC prices

declined in most compliance markets, with prices stabilizing in early 2011 to less than 

$20/MWh (Figure 7). Massachusetts and Rhode Island REC prices increased in mid-2011 

to nearly $30/MWh. In previous years, regions with shortages of renewable energy have 

seen compliance REC prices at or close to the ACP level of $50–$55/MWh, whereas, in 

other states or regions, compliance RECs have sold for less than $2/MWh. Figure 7 

shows the wide variation in compliance REC prices among states for which data 

are available. 
14 

Note: Plotted values are the last trade (if available) or the mid-point of bid and offer prices for the current or 

nearest compliance year for various state compliance RECs.

Sources: Evolution Markets 2007; Spectron Group 2011

Figure 7. Compliance market (Tier 1) REC prices, January 2007–August 2011

SRECs have higher values than RECs from other resource types in compliance markets. 

This is true for a number of reasons. First, 16 states and Washington, D.C., have specific 

provisions to encourage solar or customer-sited generation (DSIRE 2011), which creates 

a different supply and demand dynamic than for REC markets. Second, the ACP level is 

often set higher for solar/distributed generation tiers than for standard RPS compliance 

because of the higher cost of solar relative to other renewables that may be used to meet 

the main RPS targets. For example, solar ACPs generally range from about $400–

$700/MWh compared to about $55/MWh for the main RPS (Tier 1). 

Spot pricing for SRECs is publically available by platforms like SRECTrade and 

FlettExchange.13 SRECTrade hosts a monthly auction, while Flett Exchange is an online 

exchange. Both platforms cover markets in PJM states, Massachusetts, and Ohio, and 

similar price trends can be seen in reported data from both companies. Figure 8 shows 

SREC prices for the current or nearest compliance year. Price declines have been seen in 

most other markets in 2011, with the exception of Massachusetts and Ohio in-state 

SRECs. 

 

13 See www.srectrade.com and www.flettexchange.com. 

$0

$10

$20

$30

$40

$50

Jan-2008 Jan-2009 Jan-2010 Jan-2011

Compliance REC price ($/MWh)

MA

RI

NH

ME

DC

DE

IL Wind

MD

NJ

PA

TX
15 

Source: SRECTrade 2011

Figure 8. Compliance market SREC spot prices, August 2009–September 2011

In New Jersey, spot market prices for SRECs have been falling dramatically. Energy 

year14 2011 SRECs have traded at lower prices than energy year 2010 vintage SRECs, 

trading between $400/MWh and $500/MWh in recent months, a drop from levels of 

around $600/MWh in recent years, indicating that the SREC market is becoming 

oversupplied in New Jersey. Spot prices for energy year 2012 SRECs in New Jersey were 

trading at less than $200/MWh in September 2011, compared to $500/MWh in May 2011 

(Flett Exchange 2011). 

Long-term pricing information on New Jersey SRECs can also be obtained from auctions 

held by electric distribution companies (EDCs). In October 2010 and February 2011, 

average 10-year SREC contract prices ranged from $280/MWh to $448/MWh, depending 

on the project size and timing of the solicitation (NJBPU 2010–2011). 

In Pennsylvania, energy year 2011 SREC spot prices dropped to less than $50/MWh in 

mid-2011, from around $300/MWh in mid-2010 (Figure 8), presumably due to 

oversupply in the market. Long-term (8.5–10.0 years) SREC contracts held by EDCs in 

Pennsylvania have seen prices ranging from $149/MWh to $286/MWh in contracts 

solicited in 2010 and 2011 (First Energy Corporation 2011a; First Energy Corporation 

2011b; PPL Electric 2011a; PPL Electric 2011b). 

In Washington, D.C., SREC spot prices dropped to between $50/MWh and $80/MWh in 

summer 2011. In 2010, SREC spot prices were considerably higher, closing between 

$200/MWh and $300/MWh. Because out-of-district SRECs were allowed, the market 

was swamped with SRECs from other states. The Council of the District of Columbia 

addressed these issues by closing the door to new out-of-district resources (current out-

 

14 New Jersey operates on an energy year rather than calendar year. New Jersey’s energy year runs from 

June to May and is defined by the year in which the energy year ends. Energy year 2010 runs from June 

2010 to May 2011. 

 $- 

$100 

$200 

$300 

$400 

$500 

$600 

$700 

Aug-09

Oct-09

Dec-09

Feb-10

Apr-10

Jun-10

Aug-10

Oct-10

Dec-10

Feb-11

Apr-11

Jun-11

Aug-11

Auction price per SREC

NJ

PA

MD

DC

DE

MA

OH In-state 

OH Out-State 
16 

of-district resources will be grandfathered in) and increasing the ultimate solar 

requirement from 0.4% to 2.5% by 2023. 

2.6 Achieving Compliance Targets

Compliance obligations are still relatively young and do not require a large percentage of 

renewables to be obtained. For the most part, states have achieved high compliance levels 

with RPS policy targets. In 2006, 9 of the 14 states with compliance obligations achieved 

compliance levels of greater than 95%, with the average-weighted compliance level of 

94% for all 14 states (Wiser and Barbose 2008).15 Recent declines in REC prices indicate 

that more supply is coming online in the Northeast and Mid-Atlantic, and in California, 

utilities may be allowed to meet compliance over a three-year period. 

Connecticut, Delaware, and New Hampshire have seen shortfalls that have resulted in 

retail providers paying ACPs to meet the RPS, though each state has met an increasing 

share of its RPS in recent years using RECs. Connecticut saw shortfalls through 2007, but 

in 2008 (the latest year for which data is available), 15 of 19 companies subject to the 

RPS met the Class I standard, 14 companies met the Class II standard, and 15 companies 

met the Class III standard. Total ACPs for 2008 were only $113,730. The Connecticut 

PUC noted that, “Overall, REC procurements are keeping pace with the increasing RPS 

mandates. This provides a clear indication that supply is meeting demand” (CT DPUC 

2011, p. 14). 

Delaware has seen minor shortfalls in previous years, primarily in reaching the solar setaside target. In 2008, utilities met 84% of the solar obligation, and in 2009, they met 94% 

of the obligation using RECs. Solar ACPs totaled $36,500 in 2008 and $18,050 in 2009 

(DE PSC 2010). Delaware SREC pricing has decreased from near $300/MWh in 2009 to 

around $100/MWh in mid-2011, indicating that there may be sufficient supply to meet 

the solar set-aside target in the near-term. Delaware REC pricing has also dropped 

considerably since 2009 (from more than $15/MWh to less than $5/MWh), indicating 

that utilities may be able to meet more of their Tier I compliance obligation in 2010 

and 2011. 

In 2010, New Hampshire faced shortages in meeting its RPS, however, the shortage was 

primarily in Class III (existing biomass/methane) and Class IV (existing small 

hydroelectric). Utilities there paid $1,538,783 in Class III ACPs and $700,332 in Class 

IV ACPs (NH PUC 2011). In New Hampshire, REC prices have dropped from around 

$35/MWh in 2009 to less than $20/MWh in the first half of 2011, indicating that 

compliance may be easier to meet in the future.

In California, utilities have demonstrated a deficiency in meeting the RPS targets, though 

compliance has not been formally assessed since 2006. In 2010, large IOUs supplied 

17.9% of their electricity with RPS-eligible generation (CPUC 2011a). The RPS target 

for 2010 is 20%, though the California PUC (CPUC) has determined that deficits can be 

deferred for up to three years if the utility has an “allowable excuse” (CPUC 2011b). The 

 

15 Compliance is defined in this case by the use of renewable electricity or RECs, in addition to applicable 

credit multipliers (e.g., 125% for in-state generation), but excluding the use of ACPs. 
17 

CPUC is responsible for determining compliance with the RPS targets, and before they 

do so, the California Energy Commission (CEC) must verify the amount of renewable 

energy procured and verify that there has been no double counting. The CEC has 

currently only issued verification reports for 2004, 2005, and 2006. The 2006 verification 

report was issued in July 2010. 

New York does not have a compliance target until 2015 and has been increasing its 

procurement of renewables in order to meet the target in 2015. The New York State 

Energy Research and Development Authority (NYSERDA) is the administrator for the 

RPS, which is responsible for centrally procuring renewable energy for utilities. Utilities 

collect a fee on retail power bills and turn the funds over to NYSERDA, but the utilities 

themselves are not subject to compliance. At the end of 2010, NYSERDA expected to 

procure approximately 4 million MWh by 2015, which represents only 39% of its 2015 

RPS target (NYSERDA 2011). In a 2009 review of the state’s RPS, independent 

contractors found that the RPS program was being administered efficiently, but the 

approved funding levels would not enable the state to meet its internal 2013 RPS target 

(NYSERDA 2009). 

2.6.1 Quantity of RECs Retired

In addition to utility compliance reports and state PUC reports on RPS compliance, PJMGATS provides a public report on the number of RECs retired for compliance purposes 

(PJM-GATS 2011a). These data indicate the magnitude of RPS retirements. In 2010, 

Pennsylvania had the largest amount of Tier 1 REC retirements, followed by New Jersey 

and Maryland (Figure 9). Pennsylvania also has a substantial Tier 2 requirement, 4.2% of 

total electricity sales from new and existing waste coal, distributed generation, demandside management, large-scale hydro, municipal solid waste, wood pulping and 

manufacturing byproducts, and integrated gasification combined cycle coal technology. 

The majority of Tier 2 resources used to meet Pennsylvania’s requirement in 2010 were 

hydro-pumped storage (3.1 million RECs) and residual fuel oil/waste coal (1.1 million 

RECs). 
18 

Note: States operate on different compliance years. Washington, D.C., Maryland, and Ohio operate on a 

calendar year; therefore, these data represent January–December 2010 retirements. Delaware, Illinois, New 

Jersey, and Pennsylvania operate on an energy year; therefore, these data represent June 2010–May 2011 

retirements. 

Source: PJM-GATS 2011a

Figure 9. RECs retired for RPS compliance in PJM states, 2010

0 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000

PA

OH

NJ

MD

IL 

DE

DC

RECs retired for RPS compliance (MWh)

Tier 1

Tier 2
19 

3 Voluntary REC and Green Power Market 

Voluntary consumer purchases of renewable energy represent a market support 

mechanism for renewable energy development. In the early 1990s, a small number of 

U.S. utilities began offering “green power” options to their customers. Since then, these 

products have become more prevalent, offered by traditional utilities and renewable 

energy marketers operating in states that have introduced competition into their retail 

electricity markets or offering RECs online. Today, more than half of all U.S. electricity 

customers have an option to purchase some type of green power product directly from a 

retail electricity provider, while all consumers have the option to purchase RECs. 

Utility green power and competitive market sales are predominant in certain states.16

State data on utility and competitive market sales for 2009 are publically available from 

the Energy Information Administration (EIA) (Figure 10). EIA collects data directly from 

utilities and marketers as part of its Form 861; however, it should be noted that not all 

competitive retailers report to EIA, and therefore, these data underestimate sales, 

particularly in states with competitive retail markets.17 The top states in terms of total 

sales include California, Oregon, Washington, Colorado, New Mexico, Texas, Oklahoma, 

Minnesota, Wisconsin, New York, and Pennsylvania (Figure 10). See Appendix B for a 

table of sales by state in 2009. 

 

Source: EIA 2011a 

Figure 10. Utility green power and competitive market sales by state, 2009

 

16 Data on the geographic source of unbundled RECs is not available from EIA. 17 According to EIA, Form EIA-861 is completed by “electric utilities, wholesale power marketers 

(registered with the Federal Energy Regulatory Commission), energy service providers (registered with the 

states), and electric power producers. Responses are collected at the business level (not at the holding 

company level)” (EIA 2011a).
20 

3.1 Voluntary Market Sales

Overall, retail sales of renewable energy in voluntary green power markets exceeded 

35 million MWh in 2010, or nearly 1% of total U.S. electricity sales.18 Estimates 

presented in this report are primarily based on data provided by utilities and marketers 

and supplemented with other available data.19 Because we are unable to obtain data from 

all market participants, the estimates presented here likely underestimate the size of the 

entire market. 

In terms of resources used, wind energy represented 83.1% of total green power sales

reported here, followed by biomass energy sources, including landfill gas (8.5%), 

hydropower (primarily low impact or small hydro; 7.3%), geothermal (0.3%), solar 

(0.2%), and unknown sources (0.6%) (Figure 11). Based on the sales data presented in 

this report, we estimate the market value of green power sales (the above-market cost of 

the green power) in 2010 to be between $168 million and $285 million.20

Figure 11. Estimated green power sales by renewable energy source, 2010

Green power sales (in megawatt-hours) increased by 11% in 2010 from 2009, with a 

compound annual growth rate of 31% since 2006 (see Table 5 and Figure 12). Sales were 

up 18% from 2009 estimates previously reported in Bird and Sumner (2010). In this 

report, 2009 market figures have been revised upward 7% to reflect additional growth in 

the Texas market not previously captured. 21 

 

18 U.S. electricity sales totaled 3,597 million MWh in 2009 (EIA 2011b).The remaining renewable energy 

generation is rate-based by utilities or used to meet RPS policies. 19 Other sources include REC certifiers, REC tracking systems (see ERCOT 2011), and press releases 

describing large voluntary green power purchases. 20 Estimates of the above-market value of green power sales are determined by multiplying green power 

sales in megawatt-hours in three subsectors (utility green pricing programs, residential competitive 

markets, and nonresidential competitive and REC market) by a low and high estimate of prices in each of 

the sectors. 

21 Voluntary retirement data are published annually in a report by ERCOT to the Texas PUC. Retirements 

from the most current year (2010) are reported in aggregate, while retirements from the previous year 

Wind, 83.1%

Landfill 

gas/biomass, 

8.5%

Hydro, 7.3%

Geothermal, 

0.3%

Solar, 0.2%

Unknown, 

0.6%
21 

REC markets represent 56% of all green power sales but have seen slower growth rates in 

recent years than competitive markets.

22 The REC market saw an increase in annual sales

in 2010, but much saw lower growth than in previous years. Annual growth rates in the 

utility green pricing sector continued to decline in 2010. Growth rates in the competitive 

market were slower than in 2009, but we may be underestimating growth in the Texas 

market because 2010 data are not yet available from the Texas PUC. We used 2009 data 

from the Texas PUC to estimate the size of the market in 2010. 

Table 5. Estimated Annual Voluntary Sales by Market Sector, 2006–2010a (Millions of MWh) 

Market Sector 2006 2007 2008 2009 2010

Utility Green Pricing 3.4 4.2 4.8 5.2 5.4

% Change from previous year 39% 23% 15% 7% 5%

% Nonresidential 38% 38% 45% 45% 46%

Competitive Markets 1.7b 3.2 5.3c 8.3c 10.4

% Change from previous year -20%d 88% 64%c 56%c 25%

% Nonresidential 41% 44% 32% 40% 35%

Unbundled REC Marketse 6.8 10.6 15.6 18.7 19.8

% Change from previous year 75% 55% 49% 20% 6%

% Nonresidential 99% 98% 99% 99% 99.8%

Retail Total 11.9 18.0 25.7c 32.2c 35.6

% Change from previous year 40% 51% 43%c 25%c 11%

% Nonresidential 73% 75% 75% 76% 73%

a Includes sales of new and existing renewable energy. Totals and growth rates may not compute due to rounding. b 2006 sales figures may be underestimated because of data gaps. 

c 2008 and 2009 competitive market sales were revised upward in this report to reflect data on green power markets 

in Texas published by the Texas PUC in 2010 and 2011. 

d 2006 number is likely underestimated because of data gaps. e Includes only RECs sold to end-use customers separate from electricity (unbundled). 

 (2009) are reported by marketer. These voluntary retirements include both bundled and unbundled REC 

purchases. In order to provide an accurate estimate of competitive market sales in Texas, which we 

incorporate into total competitive market sales, the 2009 data reported to the Texas PUC were adjusted to 

account for marketers and utilities that had already provided data to NREL. Of this leftover total, NREL 

included sales of bundled RECs into the competitive market category. For 2010, data are not yet available 

by marketer; in order to provide a conservative estimate of the competitive market, the amount of sales 

added in 2009 were also added to 2010 figures, multiplied by the growth rate that was seen from 2008 to 

2009 in missing data. Data from 2010 may need to be modified if individual marketer data for 2010, due to 

be released in May 2012, are different from our current estimate. 22 The REC sales figures reflect sales to end-use customers separate from electricity. RECs bundled with 

electricity and sold to end-use customers through utility green pricing programs or in competitive 

electricity markets are counted in other categories. 
22 

 

Figure 12. Estimated annual voluntary sales by market sector, 2006–2010

3.1.1 Utility Green Pricing Sales

Utility green pricing sales continue to exhibit some growth, but growth has slowed in 

recent years. Collectively, utilities in regulated electricity markets sold about 5.4 million 

MWh of green power to customers in 2010 (Table 5). Green pricing program sales to all 

customer classes grew by 5% in 2010, exhibiting slightly less growth than in 2009 and 

markedly slower growth from previous years, when rates ranged from 15% to 43% 

(Table 5). While some programs continue to grow robustly, the slower growth in this 

sector may be a result of many factors, such as the decline in new utility program

development, decline in the economy, decreased emphasis on marketing programs, or it 

may be possible that green pricing sales are reaching the top of the standard “S” curve. 

Under the standard “S” curve, a new market initially sees slow annual growth rates, 

followed first by a period of exponential growth and then with a slower growth rate, 

indicating that the market may be saturated. 

In utility green pricing programs, the average residential purchase in 2010 (approximately 

5,400 kWh/year) increased from 2009 but still remained lower than in 2008. The average 

nonresidential purchase decreased slightly in 2010 to near-2008 levels (approximately 

142,000 kWh/year) after nearly doubling between 2007 and 2008.23 

In 2010, green pricing sales represented a small proportion of a utility company’s overall 

energy sales. On average, renewable energy sold through green pricing programs in 2010 

represented 1.1% of total utility electricity sales (on a megawatt-hour basis). The average 

percentage of green power sold compared to total utility electricity sales in 2010 

remained relatively unchanged from 2009, while the median percentage increased 

slightly. Top performing programs saw rates ranging from 3.4% to 22.6%. Due to a large 

nonresidential purchase, one small utility reported that 22.6% of its total retail electricity 

sales were green power sales (see Appendix C). 

 

23 For data from previous years, see Bird and Sumner 2010.

0 

5 

10

15

20

25

30

35

40

2006 2007 2008 2009 2010

Annual green power sales 

(millions of MWh)

Unbundled REC Markets

Competitive Markets

Utility Green Pricing
23 

3.1.2 REC and Competitive Market Sales

In REC markets and competitive green power markets (i.e., in states with retail 

competition), an estimated 30.1 million MWh of renewable energy was sold to retail 

customers in 2010 (Table 5). Overall, 2010 was again a mixed year for both REC 

marketers and competitive marketers; some saw large gains in sales, while others saw 

sales remain flat or even down compared to 2009. 

In competitive electricity markets, an estimated 10.4 million MWh were sold as a 

bundled green power product in competitive electricity markets—a 25% increase from 

2009. Due to the challenges of obtaining data from competitive marketers and the lack of 

current data on the Texas market, which has seen a dramatic increase in the number of 

companies offering renewable energy products, it is likely that the sales figures for the 

competitive market are underestimated. There were 69 green power offerings in Texas as 

of September 2011, compared to 50 as of February 2010 (Power to Choose 2011). 

Because our estimate of 2010 Texas sales uses 2009 data as a proxy until 2010 data is 

released by ERCOT, our estimate does not capture programs that were added in 2010 

or 2011. 

The increasing number of suppliers in Texas has been accompanied by increasing growth 

in voluntary retirements of RECs in Texas. Voluntary REC retirements in Texas, as 

reported by competitive marketers and utility green power programs to ERCOT, 

increased by 33% between 2009 and 2010, from 8.9 million MWh in 2009 to 11.8 million 

MWh in 2010 (ERCOT 2011). In 2010, voluntary retirements in Texas surpassed 

compliance retirements for the third year in a row (ERCOT 2011). A retirement occurs 

when a REC is used for voluntary purposes and will no longer be traded or claimed. 

The competitive-market sales figure includes renewable energy sales through default 

utility/marketer programs or individual utility/marketer partnerships in competitive 

markets, which amounted to approximately 763,000 MWh in 2010, a 13% decrease from 

2009. The losses came primarily from two programs; however, most programs saw flat or 

small declines in sales.

Retail REC sales (unbundled RECs) increased by 6%, reaching 19.8 million MWh in 

2010. This represents a substantially slower growth than in previous years, where year 

over year growth ranged from 20% to 75% (Table 5). The EPA’s Green Power 

Partnership saw green power use among its members increase by 8% from 2009 to 2010, 

from 17.8 million MWh to 19.2 million MWh (Collison 2011). Though the program has 

continued to see strong growth due to new partners and commitments, attrition rates have 

increased a bit in the last two years. For example, PepsiCo, which was purchasing 

1.8 million MWh of green power in December 2010, dropped its primary REC purchase 

and decided instead to invest over $30 million in new on-site renewable projects over 

three years (Collision 2011; Environmental Leader 2010). Generally, the slower growth 

in retail REC sales could be due to the economic downturn, or a shift from REC 

purchasing to more on-site generation projects.
24 

3.1.3 Residential and Nonresidential Customer Sales

Sales to nonresidential customers continued to outpace those to residential customers, 

with 73% of all sales by volume to the nonresidential sector in 2010, consistent with 

previous years (Table 5). Figure 13 delineates green power sales by customer segment. 

Residential customers played a larger role in green pricing programs and competitive 

markets than in REC markets. Residential customers accounted for 54% and 65% of 

green pricing sales and competitive market sales, respectively (Table 5). 

Nearly all REC sales on a megawatt-hour basis were to business and institutional 

customers. Generally, nonresidential customers find REC-only products attractive 

because of their flexibility and the greater potential for cost savings because they can be 

sourced from renewable energy projects in more favorable resource locations; also, the 

electricity does not have to be delivered directly to the customer, which lowers 

transaction costs. For commercial and institutional customers that operate facilities in 

multiple locations across the country, RECs may also provide a more efficient green 

power sourcing solution than working with utilities in each individual utility territory.24

On the other hand, residential customers may not be aware that RECs are available or 

may not understand what they convey. 

Figure 13. Residential and nonresidential voluntary sales, 2006–2010

3.1.4 Capacity Equivalent of Green Power Sales

At the end of 2010, megawatt-hour sales of renewable energy in voluntary markets 

represented a generating capacity equivalent of approximately 11,200 MW, with about 

9,400 MW of that from new renewable energy sources (see Table 6).25,26 Since 2007, 

 

24 For example, the EPA Green Power Partnership reports that the majority of its Top 25 partners purchase 

RECs (see Appendix A). For more information, see http://www.epa.gov/greenpower/. 25 Capacity estimates are calculated based on reported green power kilowatt-hour sales, assuming capacity 

factors for each renewable resource type. For wind, a capacity factor of 33% was assumed, 90% for landfill 

gas, 80% for biomass, 96% for geothermal, 40% for hydroelectric, and 15% for solar electric.

26 “New” renewable energy capacity defined here is capacity that was sourced from renewable energy 

systems that were built or repowered after January 1, 1997.

0 

5 

10

15

20

25

30

35

40

2006 2007 2008 2009 2010

Annual green power sales 

(millions of MWh)

Nonresidential

Residential

73%

75%

75%

76%

73%
25 

when total renewable capacity supplying the green power market was 5,100 MW, the 

amount of renewable energy capacity serving green power markets increased more than 

two-fold. 

Table 6. Estimated Cumulative Renewable Energy Capacity Supplying Green Power 

Markets, 2008–2010 (MW)

Market 2008 Total 

REa

Capacity

2008 New 

RE 

Capacity

2009 Total 

RE 

Capacity

2009 New 

RE 

Capacity

2010 Total 

RE 

Capacity

2010 New 

RE 

Capacity

Utility Green Pricing 1,500 1,400 1,700 1,600 1,700 1,600

Competitive Markets

and Unbundled RECs

5,800 4,900 7,700 6,400 9,400 6,800

Total 7,300 6,300 9,400 8,000 11,200 9,400

Note: “New” renewable energy capacity is a subset of total renewable energy capacity supplying green power 

markets. 

a RE = renewable energy.

3.2 Voluntary Market Customer Participation 

More than 1.8 million electricity customers nationwide purchased green power products 

in 2010 through regulated utility companies, from green power marketers in a 

competitive-market setting, or in the form of RECs (Table 7).27 This represents a 25% 

increase in participation from 2009. While not as strong as the 2009 growth of 44%, the 

growth is stronger than other previous years (2006–2008). Participation in competitive 

markets increased about 45% primarily due to substantial customer increases reported by 

one marketer operating in states with retail competition. REC market participation also 

increased considerably, due to an increase in residential customer participation. 

Participation in utility green pricing programs was up slightly, due to increases in 

residential customer participation. 

 

27 It is important to note that there is greater uncertainty in our customer estimates for competitive and REC 

markets because of data limitations. For more detailed estimates by state for 2007 and 2008, see data from 

EIA 2009 in Appendix C. Generally, our estimates are consistent with the EIA estimates when adjusted for 

customers in Ohio who participated in community aggregations in 2005 and earlier. We excluded these 

customers from our estimates because they purchase products with very low renewable energy content 

(1%–2%). 
26 

Table 7. Estimated Cumulative Green Power Customers by Market Segment, 2006–2010

2006 2007 2008 2009 2010

Utility Green Pricing 490,000 550,000 550,000 550,000 570,000

Residential 470,800 526,700 519,700 526,300 544,700

Nonresidential 15,500 20,200 26,100 26,000 22,900

% Residential Growth 23% 12% -1% 1% 4%

% Nonresidential

Growth 37% 30% 29% -1% -12%

Competitive Market ~ 210,000 300,000 390,000 830,000 ~ 1,200,000

Voluntary REC 

Market ~ 10,000 > 10,000 30,000 < 20,000 > 60,000

Retail Total ~ 710,000 ~ 860,000 ~ 970,000 ~ 1,400,000 ~ 1,830,000

% Change ~ 22% ~ 21% ~ 13% ~ 44% ~ 25%

Note: In some cases, estimates have been revised from those reported in previous NREL reports as 

updated data have become available. Totals may not add due to rounding. 

3.2.1 Utility Green Pricing Participation

Utility green pricing programs had about 570,000 customers participating at the end of 

2011 (Table 7).28 As in the past, a relatively small number of green pricing programs 

account for the majority of customers, with just 10 programs accounting for 75% of all 

participants (see Appendix C).29 In 2010, residential participation rebounded slightly, 

increasing 4%, while nonresidential participation fell by 12%. Nonresidential growth has 

been slowing in recent years, and absolute numbers of nonresidential participants have

declined since 2008. 

The decline in the economy likely contributed to smaller gains in residential participation

and a decrease in nonresidential participants relative to previous years. Of the 66 utility 

programs that reported participation data in both 2009 and 2010, 33 utilities (50%) saw 

net declines in participation, 23 utilities (35%) saw net gains in participation, and 10 

utilities (15%) had exactly or nearly the same number of participants. 

Table 7 delineates residential and nonresidential customer participation in utility green 

pricing programs over time. Nearly all participants are residential customers (96%), with 

nonresidential customers accounting for only 4% of all participants. From 2002 to 2008, 

nonresidential participation was growing at a faster rate than residential participation; 

however, in 2009, this trend reversed and continued through 2010, with nonresidential 

customers declining by 12% and residential customers increasing by 4%. 

At the end of 2010, the average participation rate in utility green pricing programs among 

eligible utility customers was 2.1% with a median of 1.0%. These industry-wide rates 

have shown little change in recent years. Top-performing programs have demonstrated 

 

28 NREL attempted to contact all utility green pricing programs and received data for about 60% of 

programs in 2009, including all of the major programs. The remaining programs, which are smaller in size, 

do not have a large impact on overall participant numbers. Wherever possible, other sources and previously 

reported data were used to estimate data gaps. 29 NREL issues five different Top 10 lists based on total sales of renewable energy to program participants, 

total number of customer participants, customer participation rates, green power sales as a fraction of total 

utility sales, and the premium charged to support new renewable energy development. These lists can be 

found in Appendix C or at http://apps3.eere.energy.gov/greenpower/markets/pricing.shtml?page=3. 
27 

improvement over time, with participation rates ranging from 5.3% to 21.5% in 2010, 

compared to a range of 3.9% to 11.1% in 2003, though participation rates in top 

performing programs have remained relatively unchanged since 2007. 

In 2010, utilities reported that an average of 7.0% and a median of 4.7% of customers 

dropped out of green pricing programs, a slight decrease from 2009 when utilities 

reported that an average of 7.8% and a median of 6.3% of customers dropped out. The 

decrease in customer dropouts is likely due to an improvement in the economy. 

3.2.2 Competitive Market Participation

In the competitive green power market, participation continued to expand in 2010 as a 

result of a large increase in customers reported by one marketer in Texas. In 2010, 

approximately 1.2 million customers were participating, an increase of 45% from 2009. 

This increase was not as great as that in 2009, when participants in competitive markets 

more than doubled. It is a particular challenge to obtain data about the competitive 

market, so it is likely that these figures underestimate the number of participants in 

competitive market programs.

As noted earlier, the Texas market has seen dramatic growth in the number of green 

power offerings and participants in recent years. As a result, the number of customers 

purchasing green power has grown substantially, although data are not yet available for 

2010. According to the most recent published EIA data (for 2009), the number of green 

power customers in Texas increased by 123% over two years, from 142,000 customers in 

2007 to 316,000 customers in 2009 (see Appendix B).30 

While the number of green power purchasers has expanded during the past few years in 

markets with retail competition, participation has been less consistent over time, as some 

markets have grown and then contracted (such as in California and Pennsylvania). In the 

last few years, growth in competitive markets has been concentrated in Texas and a few 

programs in the Northeast. During 2009, EIA data show an increase in customers in 

Washington, D.C., and Virginia. There was a substantial decline in the number of 

customers in Maryland and a slight decline in customers in Pennsylvania in 2009 (see

Appendix B). 

Nationally, participation in utility/marketer partnership programs in competitive markets 

increased through 2009 (Bird and Sumner 2010) but then declined in 2010 to less than 

120,000 customers. 

Competitive markets experienced green power customer penetration rates ranging from 

1.7% to 2.5% in the states with the most active markets, and in Texas, participation at the 

state level is much higher. Participation in competitive markets has generally been more 

volatile than in traditionally regulated markets. 

 

30 The EIA figures include customers in both utility green pricing programs and competitive market 

programs but do not include all competitive retailers; therefore, these estimates underestimate the total 

number of customers, but serve to show at a minimum the level of growth in Texas.
28 

3.2.3 Unbundled Voluntary REC Market Participation

The number of REC-only buyers has varied in recent years, ranging from less than 

10,000 to 30,000 in 2008, but saw rapid growth to more than 60,000 customers in 2010 

(Table 7). Most of the increase is due to new residential customers. This could be a result 

of REC marketers more specifically targeting the residential sector. Often residential 

customers may not be aware of the option to purchase RECs from the Internet. The 

Natural Marketing Institute found that in 2010, only 14% of the general population was 

aware that they had the option to buy renewable power from their electric or other 

company, even though all consumers have the option to buy RECs (NMI 2011). 

While most of the REC buyers are residential customers, the majority of REC sales on a 

megawatt-hour basis are made to nonresidential customers due to the much larger 

purchase sizes. As a result of large nonresidential REC purchases, REC sales represent 

56% of total green power megawatt-hour sales (Table 5) and have grown dramatically in 

recent years (see Appendix A for a list of top green power purchasers). 

3.3 Voluntary Market Products and Premiums

3.3.1 Utility Green Pricing Products and Premiums

Typically, green pricing programs are structured so that customers can either purchase 

green power for a certain percentage of their electricity use (often called “percent-of-use 

products”) or in discrete amounts or blocks at a fixed price (“block products”), such as a 

100 kWh block. Most utilities offer block products but may also allow customers to buy 

green power for their entire monthly electricity use. Utilities that offer percent-of-use 

products generally allow residential customers to elect to purchase 25%, 50%, or 100% 

of their electricity use as renewable energy, while a few offer fractions as small as 10%. 

Under these types of programs, larger purchasers, such as businesses, can often purchase 

green power for some fraction of their electricity use as well. 

More recently, the concept of community solar has emerged through which customers 

purchase a share of a community solar system. In return, customers obtain a 

proportionate share of the system output, which is credited on their utility bill. These

programs are offered by utilities or third parties operating in conjunction with utilities. 

Community solar programs differ in terms of the upfront cost and return payment 

received by participants. One program, the Holy Cross Energy solar project, sells upfront 

shares for $3.15/W and credits participants at a rate of $0.11/kWh for the production of 

their shares (Green Power Network 2010). Community solar programs are addressed in 

more depth in Section 4.2. 

In 2010, the price of green power for residential customers in utility programs ranged 

from 0.14¢/kWh to 6.50¢/kWh above standard electricity rates, with an average premium 

of 1.67¢/kWh and a median premium of 1.50¢/kWh. These premiums have been adjusted 

to account for any fuel-cost exemptions granted to green power program participants.31 In 

2010, the 10 utility programs with the lowest premiums for energy derived from new 

 

31 For example, a small number of utilities exempt green pricing customers from monthly or periodic fuel 

charges imposed to pay higher-than-expected fossil fuel costs. For a more detailed discussion of this topic, 

see Bird et al. (2008). 
29 

renewable sources had premiums ranging from 0.14¢/kWh (a savings) to 0.84¢/kWh. On 

average, consumers spent about $6.30 per month above standard electricity rates for 

green power through utility programs, which is slightly higher than expenditures in 

previous years of around $5.40. 

Since 2002, the average price premium has dropped at a compound annual rate of 6% 

(see Figure 14). Some of this reduction can be attributed to lower market costs for 

renewable energy supplies or increased competitiveness with conventional generation 

sources. The competitiveness of wind and other renewables with conventional generation, 

as well as regional demand from state renewable energy standards, will affect premiums 

in coming years. 

Figure 14. Trends in utility green pricing premiums, 2002–2010

3.3.2 Unbundled REC and Competitive Market Products and Pricing

Green power products offered in electricity markets with retail competition tend to differ 

from those offered by utilities in regulated markets, as they are more likely to be sourced 

from RECs because suppliers may be less able to enter into long-term contracts with 

generators. In addition, price premiums may fluctuate more frequently. 

Initially, green power marketers in competitive markets were often forced to offer 

existing renewable energy sources because of a lack of new renewable energy supplies, 

but most marketers now offer primarily new renewable energy. In 2010, about 83% of 

competitive-market and REC sales were supplied from new renewable energy sources. 

This movement toward increased reliance on new sources has also been encouraged by 

green power product certification programs, which set standards for product quality and 

have required increasing amounts of new renewable energy. Both Green-e Energy32 and 

 

32 Administered by the Center for Resource Solutions, the Green-e Energy program certifies retail and 

wholesale green power products that meet its environmental standards, product content, and marketing 

standards. For details on the Green-e Energy National Standard, see the Green-e website at: 

http://www.green-e.org/. 

1.0

1.5

2.0

2.5

3.0

Average net residential premium 

(¢/kWh)

Average

Median
30 

the U.S. Environmental Protection Agency’s (EPA’s) Green Power Partnership33 have 

increased their threshold for what is considered “new” renewable energy. Previously, 

“new” was defined as facilities put into service on or after January 1, 1997, which is 

generally considered to be the inception of the voluntary green power market. As of July 

15, 2011, the Green-e Energy National Standard has a 15-year rolling “new date,” 

meaning that projects must have come online within 15 years prior to the sale of the 

green power in order to be classified as new. As of January 1, 2012, the EPA’s Green 

Power Partnership will define the “new date” as January 1, 1998, and advance one year 

each year thereafter (EPA 2010).

The price premium charged for competitive-market products depends on several factors 

including the price of default service and the cost of renewable energy generation 

available in the regional market. Some marketers have charged prices close to or even 

below the prevailing cost for system power in recent years (e.g., in Texas); others have 

offered fixed-price products, providing customers with protection against increasing 

prices for a specified period of time—usually one year. 

Competitively marketed green power products generally carry a price premium between 

1.0¢/kWh and 2.5¢/kWh for residential and small commercial customers, although 

offerings have ranged from small discounts to a premium of about 10¢/kWh in recent 

years. For utility/marketer programs offered in states with retail competition, the average 

price premium for green power was about 2.3¢/kWh. In addition, price premiums can 

change frequently with changes in market conditions. Higher-priced products often 

contain a larger fraction of new renewable energy content or resources that are more 

desirable to consumers, such as new wind and solar.

Retail prices charged for REC products typically range from about 0.5¢/kWh to 

2.5¢/kWh for residential and small commercial customers. In most cases, large 

commercial customers are able to negotiate lower prices. Nearly all REC products are 

sourced from new renewable energy generation projects as a result of product 

certification requirements.

REC buyers often seek certification out of concerns over double counting and to ensure a 

level of oversight and auditing because RECs are generally not subject to the same 

regulatory scrutiny as electricity and mandatory renewable requirements. Buyers may 

also be interested in using the Green-e Energy label in communication materials. Table 8 

shows Green-e Energy certified retail transactions in 2009 and 2010. Green-e Energy 

certified more than 23.1 million MWh of retail transactions in 2010 (Terada 2011). 

Compared to NREL’s total voluntary market retail sales figure of 35.6 million MWh, 

Green-e Energy certified 65% of voluntary market retail sales. 

 

33 See the EPA’s Green Power website at: http://www.epa.gov/greenpower. 
31 

Table 8. Total Retail Sales of Green-e Energy Certified Renewable Energy, 2009 and 2010 

(Thousand MWh)

Residential Commercial Total Retail

Year 2009 2010 2009 2010 2009 2010

RECs 40 342 15,653 19,323 15,693 19,665

Green Pricing 1,552 1,508 1,103 1,152 2,555 2,660

Competitive Electricity 224 276 188 491 411 767

Total 1,816 2,126 16,843 20,967 18,659 23,092

Note: Totals may not add due to rounding. 

Source: Terada 2011

The Green-e Energy program also certifies wholesale renewable energy transactions, 

which totaled approximately 10.2 million MWh in 2010. It is important to note that 

5.8 million MWh sold in certified wholesale transactions were resold in Green-e Energy 

certified retail transactions. The remaining 4.5 million MWh were sold in non-Green-e 

Energy certified transactions, most likely to utilities and electric service providers, power 

marketers, or retail customers.

Removing the instances of renewable energy certified by Green-e Energy at both the 

wholesale and retail levels, Green-e Energy certified sales of 27.5 million unique MWh 

in 2010. This is an increase of 26% from 2009. Assuming that all megawatt-hours 

certified at the wholesale level were ultimately sold in retail voluntary sales, 77% of the 

total megawatt-hours sold in the retail voluntary market in 2010 were involved in a 

Green-e Energy certified transaction at some point in their chain of custody. 

3.4 Green Pricing Marketing and Administrative Expenses

Retail product pricing typically reflects the costs involved in attracting and servicing 

retail customers to some degree. Data on marketing and administrative expenses are 

challenging to obtain. Some utilities do not keep track of specific program expenses 

closely: in 2010, when asked how closely they tracked marketing and administrative 

costs, with 1 being not at all and 5 being very closely, 23 out of 67 utility respondents 

indicated a 1 or 2. These programs are primarily run by small utilities, with 50,000 or 

fewer total electric customers in their service territory. 

Marketing and administrative expenses increase with the size of the utility (measured as 

the number of eligible green power customers in their service territory). For those utilities 

that track expenses closely (reporting a 4 or 5 out of 5), average marketing and 

administrative costs are presented in Figure 15. 
32 

Figure 15. Estimated average marketing and administrative costs for utilities’ tracking 

expenses (responding 4 or 5), 2010

Utilities, in some cases, are working with third parties to market their programs. In 2010, 

24% of programs reported that they were working with a third party. On the other end of 

the spectrum, 30% of utilities reported not actively marketing their program in 2010. 

3.5 REC Pricing in Voluntary Markets 

Pricing for voluntary RECs differs from compliance REC pricing and from pricing 

offered by utility green pricing programs. Unlike compliance RECs, which generally 

must be sourced from within some geographic region to be eligible for RPS compliance, 

voluntary RECs can be sourced either regionally or nationally. Utility programs tend to 

serve small, residential purchasers rather than large businesses and organizations and 

require some premium in order to market their program to the residential market. 

Voluntary REC prices will differ based upon the location of the REC generator. Most 

utility green pricing programs or marketers selling bundled electricity and REC products 

source their products from local or regional resources, with some exceptions. Buyers of 

nationally sourced voluntary RECs are often large corporations that have facilities in 

multiple locations across the country. In voluntary markets, RECs that are sourced locally 

(within the region) may have to compete with RPS demand or be subject to regional 

resource limitations. Therefore, regionally sourced voluntary RECs often sell at a 

premium to nationally sourced voluntary RECs, which are often derived from the most 

cost-effective renewable resources. 

 $- 

$50,000 

$100,000 

$150,000 

$200,000 

$250,000 

$300,000 

<100k 

n= 8

100k-<700k 

n=7

700k-<1,000k 

n=13

≥1,000k 

n=8

Number of eligible green power customers in service territory

Average administrative 

costs 

Average marketing costs
33 

Sources: Evolution Markets 2007; Spectron Group 2011

Figure 16. Voluntary REC prices, January 2008–August 2011

Data on wholesale REC prices are available from brokers. As shown in Figure 16, 

wholesale RECs used in voluntary markets have generally traded in the range of $1/MWh 

to $10/MWh (0.1¢/kWh to 1.0¢/kWh) based on available indicative data from brokers. In 

2010, prices paid for nationally sourced voluntary RECs from any technology ranged 

from about $0.80/MWh to $1.20/MWh. Nationally sourced voluntary wind REC prices 

were comparable to nationally sourced voluntary RECs for any technology, while wind 

from the western United States earned higher prices. Prices differ not only by the 

technology and location but also by the vintage. Voluntary RECs sold in a given year can 

only be Green-e Energy certified if the renewable energy with which they are associated 

is generated in the calendar year the product is sold, the first three months of the 

following calendar year, or the last six months of the prior calendar year (CRS 2011). 

3.6 The Voluntary Carbon Offsets Market 

A greenhouse gas (GHG) offset (sometimes referred to as a carbon offset) is a tradable 

commodity representing a unit of GHG emissions reduction or avoidance—typically, one 

metric ton of carbon dioxide equivalent (CO2e). Offsets sourced from renewable energy 

differ from green power in that they are sold in metric tons of CO2e, while RECs and 

other forms of green power are sold in megawatt-hours. 

GHG offsets can be derived from a variety of project types that reduce or avoid GHG 

emissions, which use diverse methods for measuring these reductions; for GHG offsets 

sourced from renewable energy generation projects, the equivalent emissions reduction of 

replacing conventional generation with renewable generation must be calculated. More 

$0

$1

$2

$3

$4

$5

$6

$7

$8

$9

$10

Jan-2008 Jan-2009 Jan-2010 Jan-2011

Voluntary REC price ($/MWh)

West Wind

National 

Wind

National Any 

Technology
34 

than 25 companies offer offset products derived, at least in part, from renewable energy 

generation projects.34 

Six offset providers that offer products at least partially sourced from U.S.-based 

renewable generation reported 2010 offset sales to NREL. The carbon offsets sourced 

from renewable energy totaled more than 483,000 metric tons of CO2e, which is 

equivalent to about 593,000 MWh of renewable energy generation (Table 9).35 While the 

general trend in sales is increasing, it is difficult to determine precise trends due to the 

sporadic reporting by GHG offset providers; for example, providers may have submitted 

data in 2009 but not 2010. 

Table 9. GHG Offsets Sourced from U.S.-Based Renewable Energy Sources, 2008–2010

Carbon Offset Sales 

(Metric Tons CO2e)

Carbon Offset Sales

(MWh Equivalent)

Year 2008 2009 2010 2008 2009 2010

Residential 31,200 45,400 38,800 43,500 67,800 50,200

Nonresidential 214,700 293,800 444,300 299,000 417,900 541,600

Total 245,900 339,200 483,000 342,500 485,700 591,800

Note: 2009 sales have been adjusted from previous reports to account for new data.

 

34 The Green Power Network tracks GHG offset providers and products that are available nationally and 

derived, at least in part, from U.S.-based renewable energy generation projects. 35 The EPA’s national average electricity emissions factor for non-baseload generation (eGRID 2010) was 

used to estimate the equivalent in megawatt-hours for companies that did not report their sales in 

megawatt-hours. 
35 

4 Market Issues and Trends 

As the compliance and voluntary markets continue to grow, a few trends and issues have 

surfaced. This section highlights proposed guidance by the FTC on renewable energy 

claims and discusses the emerging trend of community solar programs. It concludes with 

a discussion of the Dodd-Frank Act and how it may impact REC markets. 

4.1 Federal Trade Commission’s Proposed Guidance on Renewable 

Energy Claims

In October 2010, the FTC proposed revisions to its Green Guides, which provide 

guidance to marketers to help them avoid making misleading environmental claims (FTC 

2010). Last revised in 1998, the proposed revisions for the first time address issues 

related to renewable energy use claims. 

One key issue addressed in the proposed guidelines relates to claims that can be made for 

renewable energy systems in which the RECs are sold. The FTC’s proposed guidance 

states that it would be deceptive for a company to represent, either directly or by 

implication, that it uses renewable energy if it is generating renewable energy but selling 

the RECs. For example, many companies have installed solar on their facilities but will 

sell the RECs to utilities that need them for compliance obligations or to others in order 

to make projects more cost effective. In this case, even though the company may have a 

solar facility on-site, the FTC’s proposed guidance says that the company cannot claim 

that it uses renewable energy. 

In the past, some marketers have encouraged companies in such a situation to make a 

claim that it “hosts” a renewable energy facility. The term “host” has been used to convey 

the fact that the company has a renewable energy facility on-site but does not claim the 

environmental attributes. However, the FTC found that reasonable consumers would 

likely misinterpret a “host” claim to mean that the company uses renewable energy. 

Thus, the FTC has proposed that making a host claim would be deceptive. Several 

organizations commented on this proposal, noting that there is a need for organizations to 

be able to explain why they have highly visible renewable projects on their land. The 

organizations suggested that without some sort of hosting claim, it becomes unclear how 

organizations could describe their projects to the public. Organizations encouraged the 

use of qualified hosting claims to explain that a renewable project is being used to meet a 

utility’s mandated solar requirement.

The Center for Resource Solutions (CRS) advises that while the FTC guidelines are being 

finalized, system hosts who are selling RECs should not make claims, such as “I generate 

100% renewable electricity,” “I have PV on my roof,” or “I host/own a solar PV system,” 

without also clearly disclosing that some or all of the RECs are sold to others 

(CRS 2010). 

The FTC also proposed that marketers should not make unqualified renewable energy 

claims if part of the power used to manufacture any part of a product was derived from 

fossil fuels. For example, if a company uses 50% wind to manufacture a product, it could 

not make an unqualified claim that the product was made with renewable energy; instead, 
36 

the company would have to qualify the type of resource it is using (wind) and the 

percentage used (50%). 

The FTC accepted public comment on the proposed revision through December 10, 2010, 

and expects to issue final guidance in 2012. 

4.2 Community Solar Programs 

Increasingly, utilities and third parties are developing community solar programs36

through which customers can purchase a share of a renewable system developed in the 

local community. In return, customers receive the benefits of the energy that is produced 

by their share. This section includes only programs where participants purchase a share of 

the solar project and receive credit for their solar production. Many different definitions 

of community solar exist in the industry, such as efforts to purchase solar in bulk in order 

to obtain pricing discounts or programs that encourage community members to donate 

funds to put a solar system up on a community building, but those types of programs are 

not discussed here. For example, the Holy Cross Energy solar project in El Jebel, 

Colorado, is an 80 kW PV system supported by 18 community participants that purchase 

shares at an upfront cost of $3.15/W ($3,150/kW) and then receive a credit on their bill 

each month at a rate of $0.11/kWh (Green Power Network 2010). Typically, community 

solar programs require an upfront investment in a “share” or “panel” of the project, which 

can cost hundreds of dollars. However, that is not always the case; Delta-Montrose 

Electric Association’s Community Solar Array program sells shares in $10 increments

(Green Power Network 2011). 

Advantages of community solar programs include potential cost savings due to 

economies of scale, as community solar programs may be able to offer a lower price per 

watt. Community solar programs typically also allow consumers to keep their shares if 

they move within the utility’s service territory. Finally, community solar may be an 

option for consumers who do not have adequate roof space or have shading issues that 

preclude the installation of a system on their homes. 

The majority of new utility programs introduced in recent years have been community 

solar programs. Between January 2008 and September 2011, 12 community solar 

programs were developed by or in conjunction with utilities, and many have expanded 

program sizes over that time period (Table 10). 

 

36 For an examination of how to develop a community solar project, see DOE 2011.
37 

Table 10. Historical Development of Community Solar Offers

Utility/Provider Program Program 

Size (kW)

Program 

Start

Ellensburg (WA) Community Solar Project 27 2006

Ashland (OR) Solar Pioneers II 63 2008

Florida Keys Electric Cooperative (FL) Simple Solar 117 2008

Sacramento Municipal Utility District (CA) SolarShares 1,000 2008

Bainbridge Island (WA) Solar for Sakai 5 2009

St. George (UT) SunSmart 250 2009

United Power (CO) Sol Partners Coop. Solar Farm 10 2009

Holy Cross Energy/Clean Energy Collective 

(CO)

Mid Valley Solar Array 80 2010

Delta-Montrose Electric Association (CO) Community Solar Array 20 2011

Holy Cross Energy/Clean Energy Collective 

(CO)

Garfield County Array 858 2011

Poulsbo Project (WA) Poulsbo Middle School 75 2011

Trico Electric (AZ) Trico Sun Farm 193 2011

Seattle City Light (WA) Community Solar 24 2011

Community solar programs in the United States have a combined capacity of more than 

2,700 kW as of June 2011 and have been growing rapidly, particularly due to the 

development of Sacramento Municipal Utility District’s SolarShares program and 

Garfield County Array by Holy Cross Energy and the Clean Energy Collective 

(Figure 17). From 2006 to 2011, combined capacity grew at a compound annual growth 

rate of 152%. 

Figure 17. Cumulative capacity of community solar programs, January 2006–June 2011

In some cases, community solar programs have been enabled by state legislation. In May 

2009, Washington passed SB 6170, which enables community solar participants to 

qualify for the state’s production incentive program (DSIRE 2011). Projects up to 75 kW 

are eligible. The production incentive can range between $0.12/kWh and $0.54/kWh, 

27 27

1,207

1,472 1,552

2,722

0 

500

1,000

1,500

2,000

2,500

3,000

2006 2007 2008 2009 2010 2011

Cumulative capacity (kW)
38 

depending on whether the project qualifies for certain local content multipliers, and each 

participant in a community solar project is eligible to receive the incentive, which is 

capped at $5,000 per year per participant (DSIRE 2011). 

In Colorado, legislation was passed in June 2010 requiring that IOUs develop plans to 

acquire RECs from community solar gardens. The bill required the PUC to set a 

minimum and maximum purchase of electrical output for each utility. In order to comply, 

the state’s largest utility, Xcel Energy, will offer a new Solar*Rewards Community 

program, which will offer to purchase the energy and RECs from up to 3 MW of solar 

each year from 2011 to 2013. The details of the program are still under regulatory review; 

however, Xcel has proposed solar incentives beginning between $0.11/kWh and 

$0.14/kWh, depending on the system size, and decreasing over time (Xcel 2011). 

4.3 Potential Dodd-Frank Act Regulation of RECs

The Dodd-Frank Act, passed in July 2010 in response to the financial crisis, gives 

authority to the Commodity Futures Trading Commission (CFTC) and Securities 

Exchange Commission (SEC) to regulate certain financial instruments.37 The new 

regulation was adopted as part of an effort to “reduce the risk, increase transparency, and 

promote market integrity within the financial system” (CFTC 2011). Of particular interest 

to REC markets and broader environmental commodities markets is the CFTC’s charge 

to define “swap,” “swap dealer,” and “major swap participant” and regulate those 

products and entities. 

These terms are important because the Dodd-Frank Act imposes clearing requirements 

for swaps. A clearing requirement would mean that entities participating in REC 

transactions would be required to post collateral deposits. The CFTC has not said what 

level of deposit would be required, but industry participants have suggested that the 

requirement could be between 5% and 25% (Mickelson 2011a). This type of requirement 

would reduce the amount of capital that developers would have available to fund projects. 

The CFTC does offer exemptions from regulation. One type of exempt product includes a 

"nonfinancial commodity ... for deferred shipment or delivery, so long as the transaction 

is intended to be physically settled (Section l a (47)(B)(ii)).” While the CFTC has not 

defined “nonfinancial commodity” or “physically settled,” one argument is that RECs are 

“non-financial commodities” and are “physically settled” because there is physical 

delivery of a title when RECs are bought or sold. If that were the case, then RECs could 

be exempt from regulation as a “swap” under Dodd-Frank. 

The CFTC and SEC issued joint proposed rules on June 7, 2011, seeking comments on 

definitions of these terms by July 22, 2011. The CFTC has yet to issue final regulations, 

though they are likely to be published before January 1, 2012, as many other Dodd-Frank

rules that incorporate swap definitions are scheduled to take effect then (Mickelson 

2011b). 

 

37 The CFTC is an independent agency that was established in 1974 to regulate commodity futures and 

option markets. The SEC was created in 1934 to regulate the stock market. 
39 

5 Conclusions and Observations

Compliance and voluntary REC markets continue to exhibit growth and provide an 

important stimulus for renewable energy development. Green power markets provide an 

additional revenue stream for renewable energy projects and raise consumer awareness of 

the benefits of renewable energy. Based on this review, we have identified the following 

market trends:

• In 2010, RECs required for compliance outpaced voluntary REC sales for the 

first time. Compliance demand in 2010 is estimated at 55 million MWh, while 

voluntary demand totaled 35.6 million MWh. Compliance demand for new 

renewables is expected to grow to more than 150 million MWh, or more than 

40,000 MW, in 2015. 

• For the most part, states have been achieving RPS policy targets. Some 

shortages have existed in the Northeast and California. In California, large 

IOUs supplied 17.9% of their electricity with RPS-eligible generation in 2010, 

compared to the target of 20%. Recent REC pricing in most markets indicates 

that states will not be facing shortages in the short term.

• SREC markets are relatively young but are expected to grow rapidly in 

coming years as state solar requirements ramp up. Of the 10 jurisdictions that 

allow and anticipate the use of SREC trading, the solar carve outs are 

scheduled to grow from more than 520 MW in 2011 to nearly 7,300 MW in 

2025. Pricing for SRECs is higher than RECs because of state carve-out 

polices and higher ACP levels. SRECs prices dropped in 2011 in most 

markets to less than $200/MWh, except Massachusetts and Ohio in-state, 

where pricing remains in the $400–$550 range. Price drops have occurred 

because some markets are now oversupplied and ahead of near-term 

compliance targets. 

• In 2010, compliance REC prices declined in most markets, with prices 

stabilizing in early 2011 to less than $20/MWh in most markets. 

Massachusetts and Rhode Island REC prices increased in mid-2011 to nearly 

$30/MWh. 

• In 2010, total retail sales of renewable energy in voluntary purchase markets 

exceeded 35 million MWh. Total market sales increased by 11% in 2010. 

Compared to unadjusted 2009 figures, the increase would have been 18% in 

2010. Wind energy continues to provide the most renewable energy to 

voluntary markets, at 83.1% of total green power sales. 

• Utility green pricing sales exhibited growth of 5% in 2010, similar to growth 

in 2009 (7%), but less than in previous years. Increasingly, utilities and third 

parties are developing community solar programs. These programs enable 

utility customers to purchase a share of a system and receive the benefits of 

the energy produced by their share. Between January 2008 and September 

2011, 12 community solar programs were launched and many have expanded 

program size over the same time period. 
40 

• Competitive markets saw the largest percentage growth in sales in 2010 

(25%), likely due to the increasing number of suppliers in the Texas market. 

There were 69 green power offerings in Texas as of September 2011, 

compared to 50 as of February 2010. 

• REC markets remain the largest market segment, representing more than half 

of the total voluntary market in 2010, but the sector saw slower growth in 

sales (6%) than in previous years. This slower growth rate is consistent with 

data reported by EPA’s Green Power Partnership and could be due to 

economic downturn or companies shifting from REC purchasing to 

developing on-site generation projects. 

• Overall, the total number of customers purchasing green power increased by 

approximately 25% in 2010, with gains coming from one competitive offering 

in Texas and increases in the residential REC market. The number of green 

power offerings in Texas continues to increase, up from 50 in February 2010 

to nearly 70 as of September 2011. 

• Wholesale RECs used in voluntary markets have generally traded in the range 

of $1/MWh to $10/MWh in recent years, based on available indicative data. 

Nationally sourced voluntary RECs from any technology ranged from about 

$0.80/MWh to $1.20/MWh in 2010. 

• Upcoming regulations could affect both voluntary and compliance markets. 

The FTC’s proposed revisions to the Green Guides will help marketers avoid 

making misleading environmental claims. Under the proposed guidance, it 

would be deceptive for a company to claim that it hosts a renewable energy 

system if it is selling the RECs. The Dodd-Frank Act allows for regulation of 

“swaps,” “swap dealers,” and “major swap participants” by the CFTC, 

potentially resulting in a clearing requirement for REC transactions; however, 

the rulemaking process is ongoing, and it is unclear whether RECs and REC 

market participants will be covered by the rules. 
41 

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47 

Appendix A. Leading Purchasers in the EPA Green Power 

Partnership 

Table A-1. Top 25 Purchasers in the EPA Green Power Partnership Program, April 6, 2011 

Company & Rank Annual 

Green Power 

Usage (kWh)

Green 

Power % of 

Total 

Electricity 

Use

Green Power 

Resources

1. Intel Corporation 2,502,052,000 88% Solar, Wind

2. Kohl's Department Stores 1,418,065,000 100% Biomass, Small

Hydro, Solar, 

Wind

3. Whole Foods Market 817,657,623 100% Solar, Wind

4. Commonwealth of Pennsylvania 500,000,000 50% Various

5. City of Houston, Texas 438,000,000 34% Wind

6. Starbucks 421,921,000 52% Wind

7. Johnson & Johnson 416,510,688 39% Biomass, Solar, 

Wind

8. Staples 341,524,408 52% Biogas, Solar, 

Wind

9. City of Dallas, Texas 302,880,000 40% Wind

10. HSBC North America 300,000,000 112% Wind

11. Cisco Systems, Inc. 270,209,528 29% Biomass, Wind

12. Wal-Mart Stores, Inc./California and 

Texas Facilities

263,533,433 8% Biogas, Solar, 

Wind

13. U.S. Environmental Protection Agency 262,100,000 100% Biogas, Biomass, 

Solar, Wind

14. District of Columbia 244,267,000 50% Wind

15. U.S. Air Force 243,942,872 3% Biogas, Biomass, 

Solar, Wind

16. TD Bank, N.A. 240,333,272 100% Wind

17. BNY Mellon 225,000,000 75% Wind

18. City of Chicago, Illinois 215,000,000 20% Wind

19. BD 200,631,536 38% Wind

20. University of Pennsylvania 200,194,600 48% Solar, Wind

21. U.S. Department of Energy 188,599,600 4% Various

22. Kimberly-Clark Corporation 176,533,000 7% Biomass

23. State of Illinois 176,000,000 33% Wind

24. Deutsche Bank 170,000,000 114% Wind

25. Pearson, Inc. 157,096,000 101% Biogas, Wind

Source: EPA 2011
48 

Appendix B. Estimated U.S. Green Pricing Customers and 

Sales by State38

Table B-1. Estimated U.S. Green Pricing Customers by State and Customer Class, 2008 and 2009 

State

2008 Total 

Participating 

Customers 

2009 Total 

Participating 

Customers 

2009 

Residential 

Participating 

Customers

2009 

Nonresidential 

Participating 

Customers

2009 

Electric 

Industry 

Participantsa

AK 460 - - - -

AL 1,816 1,861 1,831 30 24

AZ 4,345 7,620 7,396 224 6

AR 25 25 24 1 3

CA 83,610 85,535 81,961 3,574 12

CO 58,236 54,739 52,545 2,194 28

CT 146 19,965 19,398 567 5

DC 5,515 2,283 589 1,694 1

DE 12,453 5,523 4,227 1,296 10

FL 38,484 3,247 3,199 48 4

GA 9,356 8,509 8,314 195 23

HI - - - - -

ID 5,127 4,835 4,690 145 6

IL 4,265 4,781 4,752 29 4

IN 6,208 6,554 6,424 130 18

IA 9,265 8,977 8,220 757 39

KS 1 98 94 4 4

KY 3,058 3,436 3,399 37 25

LA 395 519 485 34 2

ME 2,221 2,756 2,512 244 2

MD 59,027 16,148 9,819 6,329 3

MA 10,212 13,717 13,356 361 8

MI 28,128 31,125 30,873 252 12

MN 44,433 46,219 45,241 978 100

MS 258 255 244 11 13

MO 4,338 5,416 5,332 84 19

MT 564 536 507 29 9

NE 7,646 7,295 7,273 22 3

NV 31 28 27 1 2

NH 1 - - - -

NJ 2,268 2,001 1,971 30 3

NM 3,429 20,688 18,638 2,050 13

NY 28,535 67,880 64,127 3,753 9

NC 14,223 12,959 12,722 237 24

ND 3,109 1,656 1,643 13 6

OH 3,755 4,346 4,203 143 15

OK 10,421 15,858 14,744 1,114 12

OR 113,098 127,290 123,480 3,810 24

PA 37,554 35,335 34,577 758 6

RI 5,206 4,765 4,640 125 1

SC 10,380 6,310 5,878 432 21

 

38 Figures reported in this section do not include all sales and customers from competitive retailers and 

therefore underestimate sales and customers in states that allow retail competition.
49 

State 2008 Total 

Participating 

Customers

2009 Total 

Participating 

Customers

2009 

Residential 

Participating 

Customers

2009 

Nonresidential 

Participating 

Customers

2009 Electric 

Industry 

Participantsa

SD 612 557 543 14 6

TN 12,699 20,774 19,805 969 65

TX 205,725 316,585 288,779 27,806 22

UT 25,898 27,750 27,136 614 8

VT 4,792 4,936 4,690 246 2

VA 1,062 6,183 6,111 72 3

WA 47,907 50,931 49,476 1,455 25

WV 74 131 128 3 2

WI 48,118 50,015 47,669 2,346 63

WY 4,506 4,826 4,493 333 7

Total 982,995 1,123,778 1,058,185 65,593 722 a Includes entities with green pricing programs in more than one state

- = No data reported.

Note: Nonresidential may include some customers for whom no customer class is specified. 

Note: Totals may not add due to rounding. 

Source: EIA 2011a
50 

Table B-2. Estimated U.S. Green Pricing Customers by Customer Class, 2002–2009

Year Electric Industry 

Participants

Participating Customers

Residential Nonresidential Total

2002 212 688,069 23,481 711,550

2003 308 819,579 57,547 877,126

2004 403 864,794 63,539 928,333

2005 442 871,774 70,998 942,772

2006a 484 606,919 35,937 642,856

2007 591 773,391 62,260 835,651

2008 643 918,284 64,711 982,995

2009 722 1,058,185 65,593 1,123,778 a In 2006, the single largest provider of green pricing services in the country discontinued service in two 

states. More than 297,600 customers in green pricing programs reverted to standard service tariffs, 

predominantly in Ohio and Pennsylvania. 

Note: Nonresidential may include some customers for whom no customer class is specified. 

Source: EIA 2010
51 

Table B-3. EIA Estimated U.S. Green Pricing Sales by State (MWh), 2009 

State 2009 Sales

(MWh)

State 2009 Sales

(MWh)

AK - MT 6,308

AL 7,659 NE 15,067

AZ 104,548 NV 81

AR 18,497 NH -

CA 809,262 NJ 18,369

CO 345,377 NM 219,210

CT 192,971 NY 358,271

DC 29,612 NC 12,898

DE 90,160 ND 34,761

FL 14,983 OH 24,468

GA 56,306 OK 231,508

HI - OR 1,130,908

ID 48,820 PA 300,515

IL 25,181 RI 33,150

IN 112,885 SC 28,351

IA 34,458 SD 263

KS 73,435 TN 73,160

KY 42,685 TX 5,102,146

LA 3,350 UT 180,173

ME 17,862 VT 16,674

MD 171,138 VA 23,584

MA 83,746 WA 579,015

MI 172,649 WV 855

MN 276,516 WI 449,843

MS 1,113 WY 42,935

MO 58,890

Total 11,674,616

Source: EIA 2011a
52 

Appendix C. Top 10 Utility Green Pricing Programs

Table C-1. Green Pricing Program Renewable Energy Sales (as of December 2010) 

Rank Utility Resources Used Sales 

(kWh/year) 

Sales 

(aMW)a

1 Austin Energyb Wind, Landfill Gas 754,203,479 86.1

2 Portland General Electricc Wind, Biomass, 

Geothermal 735,745,202 84.0

3 PacifiCorpbde Wind, Biomass, Landfill 

Gas, Solar 587,373,391 67.1

4 Sacramento Municipal Utility 

Districtb

Wind, Hydro, Biomass, 

Solar 395,537,564 45.2

5 Xcel Energybf Wind, Solar 388,837,429 44.4

6 Puget Sound Energybg

Wind, Landfill Gas, 

Biomass, Small Hydro, 

Solar

314,892,507 35.9

7 Connecticut Light and Power/ 

United Illuminating Wind, Hydro 229,408,999 26.2

8 CPS Energyh Wind 186,880,675 21.3

9 National Gridi Biomass, Wind, Small 

Hydro, Solar 167,149,902 19.1

10 We Energiesb Wind, Landfill Gas, Solar 164,546,605 18.8

a An "average megawatt" (aMW) is a measure of continuous capacity equivalent (i.e., operating at a 100% 

capacity factor).

b Product is Green-e Energy (www.green-e.org) certified.

c Marketed in partnership with Green Mountain Energy Company.

d Some Oregon products marketed in partnership with 3Degrees Group, Inc.

e Includes Pacific Power and Rocky Mountain Power.

f Includes Northern States Power, Public Service Company of Colorado, and Southwestern Public Service.

g Residential product marketed in partnership with 3Degrees Group, Inc.

h Data period: February 2010–January 2011.

i

Includes Niagara Mohawk, Massachusetts Electric, Narragansett Electric, and Nantucket Electric.
53 

Table C-2. Green Pricing Program Total Number of Customer Participants (as of December 

2010)

Rank Utility Program(s) Participants

1 Portland General Electrica Clean Wind, Green Source, 

Renewable Future 77,907

2 PacifiCorpbc Blue Sky Blockd

, Blue Sky Usaged, 

Blue Sky Habitatd 76,322

3 Xcel Energye WindSourced

, Renewable Energy 

Trust 66,401

4 Sacramento Municipal Utility 

District Greenergyd 51,498

5 PECOf PECO WIND 32,629

6 Puget Sound Energyg Green Power Programd 29,398

7 Connecticut Light and Power/ 

United Illuminating CTCleanEnergyOptions 24,283

8 Iberdrola USA: NYSEG and 

RG&Ef Catch the Wind 23,011

9 We Energies Energy for Tomorrowd 22,306

10 National Gridh GreenUp 21,475

a Marketed in partnership with Green Mountain Energy Company. 

b Includes Pacific Power and Rocky Mountain Power.

c Some Oregon products marketed in partnership with 3Degrees Group, Inc.

d Product is Green-e Energy certified. e Includes Northern States Power, Public Service Company of Colorado, and Southwestern Public Service.

f

Marketed in partnership with Community Energy, Inc.

g Residential product marketed in partnership with 3Degrees Group, Inc.

h Includes Niagara Mohawk, Massachusetts Electric, Narragansett Electric, and Nantucket Electric.
54 

Table C-3. Green Power Sales as a Percentage of Total Retail Electricity Sales (in kWh) (as 

of December 2010)

Rank Utility Program(s) % of Load

1 Waterloo Utilitiesa Renewable Energy Programb 22.6%

2 Edmond Electricc Pure and Simple 9.9%

3 Portland General Electricd Clean Wind, Green Source, 

Renewable Future 8.1%

4 City of Palo Alto Utilitiese Palo Alto Greenb 7.4%

5 River Falls Municipal Utilities Renewable Energy Programa 7.2%

6 Austin Energy Green Choiceb 6.3%

7 Madison Gas and Electric Green Power Tomorrow 4.5%

8 Pacific Power – Oregon Onlyf Blue Sky Blockb

, Blue Sky 

Usageb

, Blue Sky Habitatb 4.3%

9 Sacramento Municipal Utility 

District Greenergyb 3.9%

10 Park Electric Cooperativeg Green Power Program 3.4%

a Power supplied by WPPI Energy.

b Product is Green-e Energy certified. c Power supplied by Oklahoma Municipal Power Authority.

d Marketed in partnership with Green Mountain Energy Company.

e Marketed in partnership with 3Degrees Group, Inc.

f

Some Oregon products marketed in partnership with 3Degrees Group, Inc. g Power supplied by Basin Electric Power Cooperative.
55 

Table C-4. Price Premium Charged for New, Residential Customer-Driven Renewable 

Power (as of December 2010)

Rank Utility Resources Used Premium (¢/kWh)

1 Indianapolis Power & Light Companya Wind 0.14

2 Edmond Electricbc Wind 0.27

3 Avista Utilities Wind, Landfill Gas, 

Hydro 0.33

4 City of Onawa Wind 0.40

5 Flathead Electric Cooperatived Wind 0.50

5 Moorhead Public Service Wind 0.50

5 Sacramento Municipal Utility Districta Wind, Hydro, Biomass, 

Solar 0.50

8 OG&E Electric Servicese Wind 0.72

9 Emerald People's Utility District Landfill Gas, Wind, 

Biomass 0.80

10 Xcel Energy (Minnesota only)ac Wind 0.84

a Product is Green-e Energy certified. b Power supplied by Oklahoma Municipal Power Authority. c Premium is variable; customers in these programs are exempt or otherwise protected from changes in utility fuel 

charges.

d Power is supplied by Basin Electric Power Cooperative. e 0.72¢/kWh represents the average price premium paid. The premium varies from .7 ¢/kWh to .9 ¢/kWh, based 

on purchase quantities.
56 

Table C-5. Customer Participation Rate (as of December 2010)

Rank Utility Program(s) 

Customer 

Participation 

Rate

Program 

Start Year

1 City of Palo Alto Utilitiesa Palo Alto Greenb 21.5% 2003

2 Portland General Electricc Clean Wind, Green Source, Renewable 

Future

12.6% 2002

3 Farmers Electric Cooperative 

of Kalona Green Power Project 11.2% 2009

4 Madison Gas and Electric Green Power Tomorrow 9.0% 1999

5 Sacramento Municipal Utility 

District Greenergyb 8.7% 1997

6 City of Naperville, ILd Renewable Energy 

Program 8.0% 2005

7 Silicon Valley Powera Santa Clara Green 

Powerb 7.8% 2004

8 Pacific Power – Oregon Onlyf Blue Sky Blockb

, Blue 

Sky Usageb, Blue Sky 

Habitatb

6.9% 2000g

9 River Falls Municipal Utilitiese Renewable Energy 

Programb 6.4% 2001

10 Lake Mills Light & Watere Renewable Energy 

Programb 5.3% 2001

a Marketed in partnership with 3Degrees Group, Inc.

b Product is Green-e Energy certified.

c Marketed in partnership with Green Mountain Energy Company.

d Marketed in partnership with Community Energy, Inc.

e Power supplied by WPPI Energy.

f

Some products marketed in partnership with 3Degrees Group, Inc.

g Blue Sky Habitat & Blue Sky Usage programs began in 2002.