Smug about your solar roof? Not so fast.
If you’ve installed solar panels on your roof and feel aglow with environmental virtue, you may be in for a rude awakening. There’s a good chance someone else has purchased your halo and is wearing it right now.
In most states (including California), rooftop solar panels earn Renewable Energy Certificates, which quantify how much clean electricity they produce. But if panels are leased or installed under a power purchase agreement, it’s the “third-party owner” — not the homeowner — who gets those certificates. Most then turn around and sell the RECs, a process that magically turns brown electrons green.
Here’s how it works: Joe’s Solar puts panels on your roof that produce 7,500 kilowatt-hours a year, and Joe sells you the electricity under a power purchase agreement. Because Joe still owns the panels, he gets credit — in the form of RECs — for that renewable electricity. Meanwhile, Bob’s all-fossil utility wants to “green up” so it buys RECs from Joe. That allows Bob to relabel 7,500 kilowatt-hours of his coal- or gas-fired power generation as “renewable energy.”
Source: http://www.climatechangedispatch.com/smug-about-your-solar-roof-not-so-fast.html
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