As the effects of carbon emissions from fossil fuels become more apparent in warming the planet, environmentally conscious consumers may be seeking ways to support renewable energy without the need to invest in technologies like solar panels or wind power. In the United States, there is an option available for consumers to purchase renewable electricity, even without installing on-site renewable energy systems. However, this offering is not universally accessible to all homeowners and renters, and it often comes with a slight price premium attached.
In 2023, renewable energy sources such as wind, solar, hydroelectric, geothermal, and biomass collectively accounted for approximately 21% of electricity generation in the United States, according to data from the U.S. Energy Information Administration. Despite this progress, the majority of the country's electricity, around 60%, continues to be generated from fossil fuels like coal, natural gas, and oil. These traditional sources of energy emit carbon dioxide, a greenhouse gas that contributes to the trapping of heat in the atmosphere, leading to global warming. The U.S. has set a goal to transition to completely greenhouse gas emission-free electricity generation by the year 2035.
An increasing number of individuals and organizations are making the switch away from fossil fuels and opting for renewable energy sources. In 2022, approximately 9.6 million customers in the U.S. purchased a total of 273 terawatt-hours of renewable energy through the voluntary green power market, as reported by the National Renewable Energy Laboratory. This figure represents a substantial five-fold increase from 2012 when 54 terawatt-hours were purchased. The growing trend of embracing renewable energy signifies a shift towards a more sustainable energy mix in the country.
For residential consumers looking to support renewable energy, there are various options available depending on the state and local electricity market in which they reside. Many electric utilities offer green pricing plans, allowing customers to opt for renewable electricity by paying a small premium. Typically, the additional cost for green energy is around 1 to 2 cents per kilowatt-hour higher than the standard electricity service provided by the utility. This slight increase in pricing can translate to an extra $5 to $15 on monthly electricity bills for consumers who choose to go green.
A survey conducted in 2019 revealed that nearly half of Americans, or 47%, expressed willingness to pay more for 100% renewable electricity. On average, these individuals indicated they would be willing to pay an additional $33.72 per month to support renewable energy generation. In states where there are competitive electricity markets, consumers have the option to participate in green energy marketing programs. These markets allow consumers the flexibility to select electricity suppliers from various providers, enabling them to actively support renewable energy initiatives and reduce their carbon footprint.
It's important to note that consumers who opt for renewable energy are not necessarily directly receiving electricity from renewable energy plants into their homes. Rather, green energy programs make use of renewable energy certificates (RECs) as an accounting mechanism for tracking and attributing renewable energy generation and purchases. Even consumers who are unable to access green power plans through their utility can still engage with renewable energy by purchasing RECs as a separate standalone product. These certificates are typically sold by brokers or marketers, supplementing funding for renewable energy projects without interfering with existing utility services.
The availability of renewable energy options and the increasing interest in supporting green initiatives among consumers reflect a broader shift towards sustainable energy practices in the United States. By diversifying the energy mix and embracing renewable sources, individuals and organizations are contributing to a cleaner and more environmentally friendly future. The growing awareness and adoption of renewable energy solutions highlight a collective effort to mitigate climate change and work towards a more sustainable and resilient energy system for the country.
As the demand for renewable energy continues to rise, the potential for further advancements in clean energy technologies and infrastructure is promising. Through continued support for renewable energy initiatives and policies, the U.S. can make significant strides towards achieving its goal of greenhouse gas emissions-free electricity generation by 2035. By empowering consumers to choose green energy options and invest in a cleaner energy future, the nation can pave the way for a more sustainable and environmentally conscious society.