A Consumer's Guide to Buying Clean Energy

A whopping 68 percent of the electricity used in the United States comes from burning polluting fossil fuels. The rest is created by nuclear power plants and hydropower, with only a tiny fraction coming from clean, renewable resources such as wind, the sun, underground steam and biomass (organic matter that's converted to energy).

But things are changing. Currently, 15 states require power companies to produce a percentage of electricity from renewable sources, and other states are considering such requirements.

Renewable energy can save consumers money. Because renewable "fuels" such as sun and wind are free, they reduce the price of wholesale electricity, which lowers electricity bills.

For now, however, buying less-polluting electricity can be a challenge because options differ from state to state. In this article, we identify three ways to support renewable energy and also offer a guide to rebates and incentives that may be available to you.

1. Choosing a Clean Power Supplier

Traditionally, electric utility companies have operated as monopolies within particular states. But since 1997, 18 states have opened their electricity markets to competition, giving outside companies, including suppliers that draw all or a significant portion of their power from renewable resources, the right to compete for customers. Six more are currently in the restructuring process.

To find out when and if you can choose your energy supplier, check the Energy Information Administration's website. Green-e, a green power certification program run by the nonprofit Center for Resource Solutions, identifies suppliers in these states that draw at least half their power from wind, solar energy and other clean sources.

Even if you don't live in one of these states you may want to bookmark the Green-e site and check it periodically. Green-e continually tracks and reports on changes in state practices.

• Green-e's Pick Your Power
• Electric Power Industry Restructuring Fact Sheet

2. Green Pricing

In some states, instead of choosing a specific electricity supplier, consumers can support renewable power by paying a premium on their electric bills. This practice is called green pricing.

In addition to its Green-e certification, the Center for Resource Solutions runs a green pricing accreditation program to set standards for green pricing and ensure that utility companies are delivering on their promises to invest in renewable resources.

• Green Pricing Accreditation Initiative

3. Green Tags and Wind Certificates

Even if neither of the options above is available in your area, you can still support renewable energy. A number of electricity suppliers sell "wind certificates" and "green tags," each of which represents a specific amount of clean power added to the nation's energy grid in place of electricity from fossil fuels.

By purchasing a tag or certificate, you can help offset global warming pollution created in generating electricity for your home or office.

Both NativeEnergy and Bonneville Power Foundation, listed below, can help you calculate how much pollution that is. (NRDC worked with these two groups to offset emissions related to our February 2003 Rolling Stones concert to raise awareness about global warming.)

Will your electricity bill be reduced by the amount you spend on wind certificates or green tags? No, but you'll be investing in clean air and a stable climate.

• Green-e's List of Certified Tradable Renewable Certificates for Consumers
• NativeEnergy's WindBuilders program
• Bonneville Environmental Foundation's Green Tags program