National Renewable Energy Day is observed annually on March 21 to promote the use of renewable energy sources and raise awareness about the environmental and economic benefits of sustainable alternatives. Established in 2004, National Renewable Energy Day encourages consumers to explore and adopt alternative energy solutions such as solar, wind, hydroelectric, or geothermal power. In 2024, renewable energy sources accounted for nearly 24% of the total electricity generated in the United States.
Retail Suppliers and Voluntary Green Initiatives
Retail energy suppliers are helping contribute to the transition to a more sustainable energy future by participating in voluntary green initiatives. One example is suppliers purchasing Renewable Energy Credits (RECs), often over a state’s required Renewable Portfolio Standards (RPS).
A REC is created for each megawatt-hour (1 MWh, or 1000 kilowatt-hours) of renewable electricity generated and delivered to the power grid. When renewable energy is generated by wind, solar, or other renewable energy sources, two things happen. First, the actual electricity and second, the environmental benefits associated with electricity being produced without burning fossil fuels. RECs are used to track and account for these environmental benefits.
When a retail supplier purchases RECs, it helps increase demand for renewable energy, which in turn encourages more investment in renewable projects, such as wind and solar farms. However, the price of RECs can vary depending on the supply and demand.
The Cost of Going Green
In Texas, a green REC costs approximately $5 due to the state’s abundant and cost-effective wind resources. In comparison, a single green REC in Connecticut and Massachusetts can cost as much as $35. The sevenfold price difference is due to the higher costs of developing and maintaining renewable infrastructure in New England, where land and renewable resources, such as wind and solar, are less abundant. Sourcing RECs in New England presents unique challenges that drive up both development costs and REC prices. Additionally, New England’s stringent environmental regulations and lengthy permitting processes further complicate the expansion of renewable capacity.
Despite this, many retail suppliers opt to exceed minimum requirements. These voluntary investments not only help contribute to cleaner energy but also to their long-term commitment to delivering a more sustainable energy grid.
Recognizing the Contributions of Retail Suppliers
The voluntary actions of retail energy suppliers deserve greater recognition. By investing in RECs and renewable projects beyond state mandates, retail suppliers are helping reduce overall carbon emissions and increase the diversity of the energy mix. They are also responding to growing customer interest in green energy, offering products that allow consumers to support renewable development directly.
Moreover, the voluntary green initiatives of retail suppliers are driving innovation in the energy market. Competitive suppliers are developing new products that integrate solar, wind and battery storage, offering consumers greater choices and control over their energy use. This market-driven approach makes renewable energy more accessible and will also help make it more affordable in the future.
A Call to Action
As we reflect on the progress made this National Renewable Energy Day, it’s essential to acknowledge the crucial role that retail energy suppliers play in promoting renewable energy development. Their willingness to invest in RECs — at their own significant cost and not on the backs of ratepayers — demonstrates a steadfast commitment to helping states meet their sustainability goals for a cleaner energy future.
To continue this momentum, policymakers, regulators and consumers should support the efforts of retail suppliers by creating a more favorable environment for renewable energy investments. Streamlining permitting processes, expanding incentives for renewable energy development, and promoting cross-state collaboration on RECs will help increase renewable capacity and ultimately help drive down the cost of green energy.
Retail energy suppliers are proving that voluntary action can drive meaningful change. Their commitment to investing in renewable energy sets a powerful example for the broader energy industry. On National Renewable Energy Day, the Retail Energy Supply Association (RESA) acknowledges the contributions of competitive suppliers to a more sustainable energy future.
