When the cost of electricity shot up throughout the United States in early 2006, thousands of consumers in Austin, Texas, actually saved money. They didn’t go off the grid or forgo using electricity at their homes. Instead, many in the state capital switched to green electricity while others reaped the benefits of an earlier move to green power.

The money they saved isn’t typical. While green power is now available in most states, lower prices for it exist in only a handful of places. In fact, while the cost per kWh might be less than your electricity supplier’s standard price, you’ll typically spend about 2 cents more per kWh, according to the Energy Department’s National Renewable Energy Laboratory. (As of this spring, the nationwide average cost is 10.04 cents per kilowatt-hour, according to the Energy Information Administration.) Still, more than half a million U.S. households are using at least some green electricity, according to the NREL.


HOW IT WORKS

Electricity suppliers in more than 44 states now offer green power to residential customers. You buy the power directly from your current utility or from a green-power company of your choice. Note that you don’t receive electricity directly from the green-power provider. That power is fed into the nationwide power grid. Delivery of electricity to your home will stay the same and your billing company will rarely change.

Green power is also sold in the form of renewable-energy certificates, or RECs. The certificates represent the environmental attributes of power produced from renewable energy products. Green-power companies across the country generally sell RECs separately from electricity, so you can buy them regardless of whether green power is available in your area. RECs usually have a premium of about 2 cents per kWh, according to the NREL.


HOW TO CHOOSE GREEN POWER

Search online. Use the Department of Energy's searchable map to determine whether you can buy green power in your state through your utility or a green-power company. Or call your utility to ask about green-power options in your area. All states have available the option to buy RECs.

Consider the source. Green power is derived from many different renewable resources, and some have a greater effect on the environment than others. Wind, solar, and geothermal power are environmentally preferable sources, according to the DOE. Other sources--large-scale hydropower, some types of biomass, and municipal solid waste, for example--are generally less desirable, according to the Natural Resources Defense Council, an environmental-advocacy group. The type of resource will determine how much you’ll pay for green power. The NREL provides a basic overview of renewable energy sources.

Compare costs. Green power is typically sold in fixed amounts, such as 100-kWh blocks, or as a percentage of your monthly electricity consumption. If you’re considering switching to green power, compare the cost per kWh of each option. Also find out whether there’s a minimum purchase and if you have to sign a contract.

Here’s an example of how much extra you might expect to spend on a monthly basis for green power, depending on the quantity and cost per kWh of the power. (Note that if you buy green power as a percentage of your monthly electricity use from your power company, reducing your overall electricity consumption can reduce how much you pay for green power. For home energy-saving tips and more, visit GreenerChoices.org.




Go certified. Certification by an independent third party such as Green-e and Environmental Resources Trust can help ensure that you get the quantity, quality, and type of green power you pay for. The certification will indicate that the green-power companies are meeting the environmental and customer-protection guidelines adopted by the certifying organizations.

Why green power? Learn some of the environmental benefits of buying green electricity.

For more information on Earth Day and greener living, visit our Earth Day Guide.