On-Site and Off-Site Green Electricity
Not every community has the land, rooftops, or capital for on-site systems. In such cases, renewable electricity can be purchased from outside providers.
- Power Purchase Agreements (PPAs): Under a PPA, a third party owns and operates the solar array, and the community buys the electricity at a fixed rate. This avoids the upfront cost but gives away incentives and renewable energy certificates (RECs).
- Buying Green Power: Some utilities allow customers to purchase certified renewable electricity, often at a modest premium.
- Community Solar: In states with enabling legislation, customers can join with others to invest in a shared solar array. The output is credited to each participant’s bill, making solar possible even when a campus site is unsuitable. For more, see the U.S. Department of Energy’s Community Solar Basics.
Communities should carefully evaluate these options, paying attention to contract length, financial terms, and whether RECs are included.
Renewable Energy Certificates (RECs)
When purchasing renewable electricity, either directly or through a PPA, it is important to secure the associated Renewable Energy Certificates. A REC represents the environmental attribute of one megawatt-hour (MWh) of electricity generated from a renewable source. Without the RECs, a community cannot credibly claim that its electricity use results in emissions reductions, even if the electricity itself comes from a renewable project.
The Role of Storage
Solar and wind power are variable by nature. Batteries allow communities to store electricity during sunny or windy periods and use it when demand is higher. While current batteries are still costly and provide only a few hours of backup, prices are dropping and new long-duration technologies are emerging. Communities planning solar should ask installers about battery options, incentives, and how storage might support both savings and resiliency.
Local Benefits
Choosing renewable electricity has benefits beyond reducing carbon. Visible solar panels or a well-publicized community solar partnership can enhance marketing, appeal to prospective residents, and demonstrate alignment with community values. In addition, renewable generation paired with storage contributes to resiliency, giving a community the ability to maintain essential services during outages.
