A quick guide to understanding green energy aggregation programs in Ohio.
The idea of powering your home solely on renewable energy sounds great in the fight against climate change– but in practice it can seem a little out of reach for many homeowners. Even with federal tax credits, financing incentives and rebates, residential options like solar panels, geothermal heat pumps and wind turbines are often costly upfront investments that require the need to hire a contractor. But you may have access to an easier, cost-effective alternative if your community participates in a green electric aggregation program.
By law in Ohio, local governments can participate in electric aggregation—a process that enables customers in a community to pool together as one larger customer, gaining buying power to negotiate better fixed rates from energy suppliers and access to green energy sources. That means communities can collectively reduce their carbon footprint by choosing how their power is generated, while also helping to promote growth in the renewable energy market.
Though terms and conditions vary based on program location, it’s helpful to know if your community participates in aggregation, and if you need to take additional steps to Opt-in for renewable green energy. Below are some questions to help you get started as you explore your options.
How do I know if my community participates in an aggregation program?
Many aggregation programs are voter-approved and may come in the form of “Opt-out” (meaning you are automatically enrolled and can choose to not be included) or “Opt-in” (allowing you to individually sign up). Participation is not required and consumers can freely come in and out of aggregation programs without penalty. Whether your community’s default program is set up as “green” (clean wind, solar, etc. energy) or “brown” (traditional fossil fuel energy) can often depend on cost.
In my community, all residents are automatically enrolled in the traditional brown aggregation program (unless they choose to opt-out), with the additional option to OPT IN to the Green Electric Aggregation program to get 100% renewable electric energy for a minimal added monthly cost.
To check if your community has an electric aggregation program, the Public Utilities Commission (PUCO) website offers a map to search electric and natural gas government aggregators by address. If your community shows up, select the case number for your municipality or township and click on the most recent Opt-out Notice case document. There, you will be able to determine program details, including terms surrounding 100% green fixed energy options.
How do I sign up?
If your program automatically defaults to 100% green energy, you may already be enrolled. But if your program is like mine and you need to Opt-in to enroll, contact your local utility supplier to get the ball rolling. I was able to fill out a form online to initiate the Opt-In enrollment, which only took a few days to process before I received an enrollment notification letter confirming our terms and conditions for 100% wind-sourced energy in the form of Renewable Energy Certificates (RECs).
What are Renewable Energy Certificates? Is my home specifically being powered on renewable energy?
To understand RECs, it’s helpful to understand how homes and businesses receive electricity. Electricity supplied to consumers through a shared electric power grid comes from a variety of power sources mixed together—ranging from coal-burning power plants to renewable wind and solar farms. Because there is no way to distinguish specifically where a home’s electricity is generated from, aggregation programs utilize Renewable Energy Certificates (RECs) as a way to certify, track and assign renewable electricity generation and use within the market.
When you are part of a green energy aggregation program, RECs ensure that the electricity you use in your home is balanced by an equal amount of renewable energy produced and delivered to the power grid by a valid and certified renewable resource supplier.
As more people opt for 100% green energy within the power grid, the demand for renewable energy increases, which can help shift the needle toward more investment in the renewable energy market in the future—an important step in combating greenhouse gas emissions.
What should I know about cost?
The benefit of aggregation programs is that they operate under a stable, fixed price, which can ultimately lead to cost savings—especially if standard utility rates rise, a likely assumption based on historical data from large utility providers in the state, like AEP Ohio. (AEP Ohio “Price to Compare” (PTC) Rates)
According to an aggregation specialist with Aspen Energy, a national energy consulting firm that has helped to develop the aggregation program in my area, the projected rise in energy costs is attributed to the rapid influx of data centers being built in Ohio and their impact on the electric grid’s capacity. As a result, even if you do end up paying a little more per month through a fixed 100% green electric aggregation program, you may still be paying a lower monthly rate as the market shifts.
To give you some numbers, my community’s traditional brown electric aggregation program is set at a fixed rate of 7.15 cents per kWh, with a slight increase to 7.59 cents per kWh to Opt-in to the green program—a modest increase of about $3.67 per month to our electricity bill. A small price to pay to get 100% renewable energy.
A Final Note
While it would be great if all of that green power was sourced directly from local renewable suppliers located within Ohio, the reality is the infrastructure to supply utility-scale renewable energy is just not here yet. Renewable Energy Certificates are an important part in making green power possible in Ohio and nationwide.
By participating in a green electric aggregation program, you are helping to increase the demand for green energy, which helps to promote growth and development in the renewable energy market. It’s another example of how small, individual efforts can contribute to something bigger. Take a little time to find out what's possible for you to receive 100% renewable energy for your home!
—Jill Span Hofbauer
Sources:
"Electric Aggregation." Go Green Granville. https://www.gogreengranville.org/energy/electric-aggregation
"Renewable Energy Certificates (RECs)." United States Environmental Protection Agency. https://www.epa.gov/green-power-markets/renewable-energy-certificates-recs
"RECs: Making Green Power Possible." United States Environmental Protection Agency. https://www.youtube.com/watch?v=_12VYXms6-c
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