Since green electricity sources like wind, solar and biofuels have yet to become the main grid, innovations have been introduced to counteract the harmful effects of fossil fuel-generated power. One of the more notable, not to mention more popular and more affordable, alternatives are green tags.
Green Tags Defined
More formally called as Renewable Energy Certificates/Credits and Tradable Renewable Certificates, green tags are the marketable and tradable environmental commodities sold by renewable energy systems to consumers hooked up to the main electricity grid. Put simply, you purchase green tags from producers of renewable energy to lessen dependence on non-renewable energy sources. It’s a very eco-friendly approach to power your homes!
Green tags come in two market types. First, compliance markets are mandated by federal government policy that promotes the use of renewable energy. At present, there are 25 states in the United States implementing the so-called Renewable Portfolio Standard, which mandates the increased production of energy from renewable sources in relation to traditional sources by a fixed percentage by a certain date.
Second, voluntary markets involve electric consumers who willingly and voluntarily purchase green tags even without their state being part of the Renewable Portfolio Standard. Mainly it’s the desire to be eco-friendly that ...