Publish Date: July 6, 2022

Demand for renewable energy is growing in Indiana and across the country, with over 350 companies, over 180 cities across the U.S., and a growing number of institutions committing to power their operations with 100% clean energy. The ability to control energy costs and sources has always been a critical business priority, particularly for energy-intensive industries, organizations, and municipalities. As wind, solar and other renewable energy technologies continue to drop in price and increase in availability, renewable energy is an increasingly attractive option for companies seeking to lower costs, protect against fluctuating fuel prices, and meet their clean energy goals.

If a large energy buyer wants to meet these clean energy goals, without constructing its own renewable energy, it must acquire and retire what are known as renewable energy credits or RECs. RECs are an accounting mechanism for renewable energy, with one REC assigned to each megawatt hour of renewable energy produced. There are multiple methods that an energy buyer can use to purchase RECs; these options differ according to the level of impact (i.e., whether the REC purchase results in net-new renewable energy and emission reductions), cost, risk, and time commitment, among other factors.

Given the regulatory structure of Indiana’s electricity market, green tariffs offer an attractive path forward for large customers seeking to maximize the impact of their renewable energy purchases. However, no Indiana utilities currently offer a green tariff option. In other states where utilities have offered green tariffs to meet vocal and growing customer demand, these programs have resulted in nearly 5,000 MW of renewable energy deployment across 19 programs.

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