Are "100% Renewable" Energy Plans Actually Green?
Yes, in the sense that matters for the grid: suppliers back "100% renewable" plans by purchasing renewable energy certificates (RECs) equal to your usage, funding renewable generation on the grid. But no electricity plan can route specific electrons to your specific home — you still draw power from the same shared regional grid as everyone else.
Why the electricity in your outlet is the same either way
Electricity doesn't travel from a single power plant straight to a single house. Generators — coal, gas, nuclear, wind, solar — all feed into a shared regional grid, and it's physically impossible to trace which electron came from where by the time it reaches your outlet. So switching to a "renewable" plan doesn't change what actually flows into your home; it changes what your payment funds.
How a renewable plan actually works
Suppliers offering a "100% renewable" plan buy renewable energy certificates, or RECs, in an amount matching your electricity usage. One REC represents proof that one megawatt-hour of electricity was generated from a qualifying renewable source — wind, solar, hydro, geothermal — and added to the grid somewhere in the country. By retiring RECs equal to your usage, the supplier is certifying that renewable generation equal to what you used was added to the grid on your behalf.
This is a real, verifiable mechanism, not marketing fluff — RECs are tracked and audited so a supplier can't claim the same megawatt-hour was sold to two different customers. But it's also worth understanding it for what it is: a financial and accounting structure, not a dedicated wire from a wind farm to your house.
Does it actually help fund more renewable energy?
It depends on the type of REC. Some RECs come from renewable projects that were already going to be built regardless of demand — buying those mainly supports existing generation rather than causing new projects to get built. Other suppliers offer plans tied to newer or "additional" renewable projects, where your purchase has a more direct link to new renewable capacity coming online. If funding new renewable development specifically matters to you, it's worth asking a supplier directly what kind of RECs back their plan, rather than assuming all "green" plans work the same way.
What to actually compare before switching
Beyond the renewable claim itself, treat a green plan like any other rate offer: check whether it's fixed or variable, what the rate per kWh actually is compared to your current supply rate, the contract length, and whether there's an early termination fee. A renewable plan is worth choosing on its own merits, but it should still hold up as a reasonable rate — not just a good story.
Frequently asked questions
Does a renewable energy plan mean I get different electricity in my home?
No. Electricity from all sources feeds into the same regional grid, so the electrons reaching your outlets are identical no matter what plan you're on. A renewable plan changes what your money funds, not what physically flows to your home.
What is a renewable energy certificate (REC)?
A REC represents proof that one megawatt-hour of electricity was generated from a renewable source and added to the grid. Suppliers buy RECs equal to your usage to back a "100% renewable" claim.
Are renewable energy plans more expensive?
Sometimes, but not always — pricing depends on the supplier, your market, and current REC costs. It's worth comparing the actual rate against a standard plan rather than assuming a green plan automatically costs more.
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