Green Tariff Initiative | All About Green Tariff

Sushree Sangeeta Behera Sushree Sangeeta Behera
Jul 17, 2021 7 min read
Green Tariff Initiative | All About Green Tariff

With the geometrically expanding population, the demand for electricity and other resources is ever increasing. It's not possible to reduce our electricity consumption. However, if we spend electricity at this rate, then the day where we will struggle for breath is not far. Hence, each one of us needs to switch to renewable energy.

Renewable energy is also known as green energy. This is because this energy is generated from sources that will last forever. Green energy is mainly generated from sources such as the sun, wind, and water. These sources of energy will never exhaust and are renewable too.

Well, if you wish to switch to green energy you need to talk with your local utility regarding if they supply renewable energy. After this, you need to know about Green Tariff. You also need to know about the projects and companies of your locality which pay Green Tariff.

Green Tariff - What is It?
Green Tariff - How does it work?
Green Tariff - Renewable Energy Suppliers
Green Tariff - Types
Green Tariff - Examples
Green Tariff - RE100
Green Tariff - Advantages
Green Tariff - Challenges

Green Tariff - What is It?

Green Tariffs are prices that provide access to industries and other such sectors that use renewable energy programs. These tariffs are provided by local PUCs at some specific rates. This is usually offered to large units because it is these units that provide us energy. If renewable energy is supplied to these sources, then the common man will even get advantage from it.

You must have heard about green tariffs from your energy supplier. They must have offered you this source of renewable energy. By this, they mean that they would be supplying you renewable energy which they have been supplied with. By using renewable energy, you can contribute to the protection of our government as an individual.

Green Tariff - How does it work?

However, this Green Tariff is not available in all local utilities. The companies need to check two important things:

1) If their utility provides green energy

2) If they are eligible for Green Tariff

If the company is eligible for Green Tariff, then the company needs to check the suitable program for themselves. There are many various versions of different programs provided by the utilities. They are:

1) Some programs provide energy at a wholesale rate.

2) There are some programs in which your company will be directly connected to the process of generation of renewable energy.

3) Other programs offer you a power purchase agreement for some fixed time.

Indian Green Tariff policy

Green Tariff - Renewable Energy Suppliers

Green Tariff renewable Energy
Green Tariff renewable Energy

There are two types of renewable energy suppliers. They are:

1) One who directly provide you renewable energy

2) One who buys and then provide it to you

The first type of suppliers refers to those companies that produce renewable energy directly. These companies directly produce renewable energy.  The second type of suppliers refers to those companies who buy REGO certifications from the market. This certificate is issued to renewable energy producers. It is issued based on megawatts produced per hour. These companies work together with other companies thereby assisting them in the process of generation of renewable energy.

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Green Tariff - Types

If you think of switching to a green energy supply, you need to discuss it with your supplier. The supplier shall provide you with the details regarding how much renewable will be the new supply. Not all suppliers provide 100% renewable energy. Some suppliers even offer some percentage of renewable energy. Based on the percentage of renewable energy provided, there are three types of Green tariffs:

1) Greenest Tariffs

2) Moderately Green Tariffs

3) Greenwash

Let's discuss these Green Tariffs in detail.

Greenest Tariffs

These are the tariffs that offer a supply of  100% renewable energy. The sources of these types of providers are mentioned on their website. The suppliers which provide the Greenest Tariffs have REGO certification. You must be thinking of what exactly is REGO Certification.

Well, REGO is the acronym for Renewable Energy Guarantees of Origin. When a supplier has REGO certification, it means that it has to provide all its customers with the same amount of energy as it was supplied earlier. However, now the supplier has to supply the same amount of renewable energy. Some suppliers who have REGO certification even sell portions of it to other companies and suppliers.

Moderately Green Tariffs

Some suppliers have collaborated with other suppliers who do not promise to provide 100% renewable energy. They provide some percentage of renewable energy. Their tariff rates will even vary accordingly.


We have discussed earlier that some companies or suppliers sell away portions of their REGO certifications. The smaller companies and suppliers who buy these certifications also provide renewable energy to their consumers. This is known as Greenwash.

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Green Tariff - Examples

Here are some examples of Green Tariff along with their dates of establishment and key features.

Name Date of Establishment
Puget Sound Energy (PSE), Washington September 28, 2016
Rocky Mountain Power (RMP), Utah August 18, 2016
Xcel Energy, Colorado November 9, 2016
NV Energy, Nevada November 14, 2014
Omaha Public Power District, Nebraska January 2017

Green Tariff - RE100


RE100 is a global collaboration of all the companies and businesses working to achieve 100% renewable energy. Companies from various corners of the world have collaborated to meet the rising demands of renewable energy. These companies assist each other in developing strategies for green energy production.

Today, RE100 has about 300+ members who are working hard to meet the demand of 175+ markets across the globe. Even great tech companies such as Apple & Google have even been members of RE100. They are striving towards meeting the demands of top global markets.

Green Tariff - Advantages

There are various advantages of using green energy. These advantages might provoke you into investing in Green Tariff for your company.  Some of these are:

  • The prices are predictable and stable.
  • There are opportunities where you can save money on electricity bills.
  • There is a direct transfer of energy between supplier and utility.
  • It can lead to sustainable development.
  • It will lead to the conservation of clean fuels.
  • It also creates an ample amount of job opportunities.

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Green Tariff - Challenges

We have already known the advantages of the Green Tariff. However, not all corners of the world have a supply of Green Energy. This is because there are some major challenges to this massive project. Some of these challenges are:

1) Uncertainty in the production of energy due to weather conditions

2) Availability of poor quality of power

3) Location of the resources

4) The high amount of investments included

All these factors have been hurdles in the generation of renewable energy in all corners of the world.

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It's high time for each one of us to switch to green energy. This is essential for the sustainability of resources for our future generation. However, these hurdles shouldn't be stones in the path to our success forever. The government should plan out and devise solutions for this. It should work in an organized manner with a dedication to supply green energy to every house.

However, as an individual, we should take every little step we can to save our environment. We must be ready to accept these renewable sources of energy too. We can work hand in hand with our government to save our environment.


What is the Green Tariff?

Green tariffs are the prices paid by companies and industries for getting a supply of renewable energy.

Can I contribute to the protection of the environment?

Yes, by using green energy you can protect your environment.

Is Green energy available in all regions?

Green energy is not available in all regions now. However, sincere efforts are being put to make it available in all regions.

Can we overcome the renewable energy challenges?

Yes, we can overcome the challenges with proper technology advancements and cooperation with the government.

What are the types of Green Tariffs?

There are three types of Green Tariffs:

  • Greenest Tariffs
  • Moderately Green Tariffs
  • Greenwash
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