News
Even as more Americans look to shrink their carbon footprints, relatively few have switched to providers of electricity generated by wind, water and sun.
"Green power" programs allow consumers to purchase renewable energy, usually at a premium, without having to go through the far greater expense of erecting a windmill or installing a solar panel. The programs are widely available, yet there are estimates that fewer than 1 percent of residential consumers nationwide receive their electricity from "green power" providers.
Call it a green power disconnect.
People involved in the alternative energy industry say Americans are interested in reducing the amount of greenhouse gases they are responsible for - witness the popularity of compact fluorescent bulbs. But they say many consumers aren't aware of programs designed to reduce their reliance on fossil fuels. Or how they work. Or even if they work.
"They don't think wind and solar power can keep the lights on at night, keep the heat on the winter and keep the air conditioning on in the summer," said Brian F. Keane, president of Smart Power, a not-for-profit clean energy marketing group. "It conjures up all of the worst caricatures of the environmental movement ... They must wear hemp, they must buy organic, they must live in a cold, dark house."
Green power programs allow consumers to buy wind, hydro, solar and biomass energy without disconnecting from the electrical grid. In states with deregulated utilities, consumers can often shop directly for renewable electricity suppliers. More common are programs through utilities that allow customers to buy some of their power from green providers.
The "GreenUp" program offered by National Grid is typical. The utility's upstate New York customers can choose among four renewable providers that offer a mix of wind and small hydro power that costs from 1 to 2.5 cents more per kilowatt hour, which for an average New Yorker would mean roughly $6 to $15 in additional electricity costs a month.
The electricity is still delivered over wires maintained by National Grid, and the utility still bills the consumer. But National Grid secures the power from one of the clean energy providers on behalf of the subscribers. There's no new equipment and no visit from a power crew to get the green power running.
About 13,000 of National Grid's 1.4 million New York residential customers participate in GreenUp - a low signup rate on par with statewide and national figures.
The National Renewable Energy Laboratory estimated last year that there were about 700,000 customers nationwide - almost all of them residential - buying green power through either competitive markets or utilities in 2006. While there are 122.5 million residential customers nationwide, not all of them have access to green power programs. A better gauge might be the participation rate of 1.8 percent.
Industry analysts say higher prices likely dissuade consumers from switching. But advocates argue that the larger problems are perception and marketing. John Holtz, director of operations for Green Mountain Energy, notes that when people flick a light switch, they simply don't think of power plant smokestacks.
"Shopping for electricity is such a low-interest category with consumers, and confusing," said Holtz.
Keane said some people still equate green power with having to install a solar panel in their back yard. Others aren't sure how to shop for the program. What word do you search on Google? Renewable? Green? Alternative?
Still, Holtz said Green Mountain has had success in working with utilities like National Grid and that the customer base is growing. Similarly, the number of customers switching over has been growing steadily at least since 2000, according to NREL.
NREL senior energy analyst Lori Bird said not all utilities market their green programs, which can significantly boost participation rates. For instance, the municipal utility in Palo Alto, Calif., has a nation-high participation of around 20 percent for its PaloAltoGreen program.
PaloAltoGreen program manager Brian Ward said the affluent, educated Palo Alto population is more inclined to spend a few extra dollars a month for wind or solar - "there are a lot of Prius drivers here." But he said they also market it heavily via e-mail, direct mail and bill inserts. New utility customers are sometimes asked whether they prefer "green" or "brown" power, he said.
Keane of Smart Power said consumers need to see green power working so they can shed their misperceptions. His group is particularly bullish on programs in which local governments sign up for green power, like Hartford, Conn., which buys a fifth of its power from renewable sources. He said the programs show that renewable energy is a workable alternative, and not something from the fringe.
"The American people are primed. They are ready to take these messages," Keane said. "We just need to get these messages through."
On the Net:
| < prev | next > |