I'm interested in purchasing electricity that comes 100 percent from renewables. I need to understand the costs, but I'm confused. Help me understand the cost of purchasing electricity from renewable sources.
I'm in the Cleveland, Ohio area and I’m interested in buying electricity from renewable sources. I’m willing to pay more for this, but I’d like to understand how much more.
The websites I’ve read make it sound simple: compare the “price to compare” of the supplier I’m considering buying from and compare it to my current supplier’s price to compare. My current supplier’s price to compare is $0.0703 per KWH. The renewables program I'm interested in signing up for is the second plan in the table on this page: http://www.puco.ohio.gov/puco/index.cfm/apples-to-apples/first-energy-electric-apples-to-apples-chart/
, which says their price is $0.0593 per kWh guaranteed through May of 2014.
What's confusing is: I don’t believe this could be real. How can a program that uses 100% renewables be cheaper than my current service, which is not guaranteed to be from renewable sources? Basically, my question is: Am I not considering something when thinking about this switch? I guess the catch is when May comes the rate will rise, but if they rise too sharply couldn't I switch to another supplier? What am I missing here?
Bonus: it’s probably impossible to know what rates will be in the future. But is there a way to estimate how much more expensive electricity from renewable sources is to a consumer like me than electricity from traditional sources? It would be nice to have an idea of what the premium for green energy will be once the introductory rate ends. That seems to be the big missing piece of information.