Regulatory Surplus

Buyers of green power want their purchases to make a difference and demonstrate exclusive use of renewable electricity. To do so, the renewable electricity that they purchase or generate must go beyond what otherwise would have been available through the standard electricity mix or what the law requires or mandates to meet a compliance obligation. This is referred to as regulatory surplus because the additional renewable electricity being purchased is surplus to regulatory requirements.

Buyers demonstrate that their green power use is incremental or surplus to regulation by owning and retaining renewable energy certificates (RECs). By owning RECS, a voluntary consumer denies their use for compliance mandates or requirements by a regulated entity.

Green power consumers, both small and large electricity users, are motivated to accelerate the pace at which new renewable resources are added to the grid.

One key motivation for buying green power is the ability of a buyer to demonstrate to its customers, employees, and other stakeholders that its renewable electricity purchases are making a difference. To do this, buyers must be able to show that they contributed to demand for renewables beyond what is already required by policies.