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Green Power

More homeowners gain access to cleaner energy

February 10, 2008|By Paul Adams , Sun reporter

It wasn't long ago that powering a home with renewable "green" power meant erecting a windmill in the backyard or covering the roof with solar panels.

Either option requires a big up-front investment with an uncertain payoff.

But today, a rapidly expanding market in renewable energy has put "green power" within reach of most U.S. homeowners interested in paying for environmentally friendly power. Several marketers in Maryland and nationwide buy and sell renewable energy credits, or RECs, that allow homeowners to buy green power, at least on paper.

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An example of how it works: A wind farm in West Virginia produces electricity, creating RECs for each megawatt produced. A homeowner in Maryland then purchases enough RECs from a marketer to equal the amount of power they use from conventional, polluting power plants.

As a general rule, one can expect to pay a 15 percent to 25 percent premium to go totally green with their power. The trick is making sure you are dealing with a reputable supplier, and that your dollars are truly going to support new renewable energy projects.

"You're sort of buying the renewable energy attribute, not necessarily the power itself," said Bruce Mulliken, editor and publisher of Green Energy News, a Baltimore-based newsletter.

"One of the problems in the Mid-Atlantic is there's not a whole lot of renewable energy out there," Mulliken said

Signing up typically requires filling out an Internet form. The U.S. Environmental Protection Agency has a Web site where consumers can view a list of green power marketers that serve Maryland. Some industry groups offer certification programs so consumers know the green power they're buying is being tracked from a legitimate source.

The Maryland market

The market in Maryland is driven in part by deregulation of the power industry, which opened the door for competitive energy suppliers to steal customers from traditional utilities. Much has been said about the failure of that market to develop in Maryland.

But 100 percent green power is one product alternative energy suppliers offer that the state's traditional utilities typically don't. Some marketers are carving out a "green" niche for themselves, having balked at competing head-to-head with Baltimore Gas and Electric Co. and others for conventional customers.

Fewer than 3 percent of Maryland customers buy power from alternative suppliers, and it's unknown how many of those purchases are for green power exclusively.

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