Voluntary renewable energy tariffs are quickly emerging as one of the key tools to meet growing corporate renewable energy demand in vertically integrated markets.

Participation in renewable energy tariffs has grown steadily over the past five years, and improvements in program design have continued apace. A report from Advanced Energy Economy Institute and a companion policy brief from AEE provide guidance for the design of successful renewable energy programs in regulated markets. 

Drawing on best practices from programs across the country, Making Corporate Renewable Energy Purchasing Work for All Utility Customers, published by the Advanced Energy Economy Institute, looks at how to design voluntary renewable energy programs to meet the needs of participating customers as well as nonparticipating customers.

Noting concern expressed in some states that these programs may result in higher electricity costs for other utility customers, the AEE Institute report sets out eight design principles that policymakers, regulators, and utilities should apply to ensure that participants are able to benefit while protecting nonparticipants from impact. 

Essential Elements of Next-Generation Renewable Energy Tariffs, a succinct two-page policy brief from AEE, provides guideposts for program design and evaluation. Essential Elements outlines six design elements of successful renewable energy tariffs, recommending that such programs: (1) avoid impacting nonparticipating customers, (2) include program pricing that reflects actual market pricing and program costs, (3) allow for competitive project selection, (4) facilitate development of new, additional renewable energy capacity, (5) allow a range of corporate customers to participate, and (6) include varied or flexible offerings to meet the needs of different customers. 

Please fill out the form to download the report and policy brief.