Within the LEED scorecard, there are two ways that project owners may choose to implement renewable energy. The first is by generating on-site renewable energy on the actual project site, EAc2: Renewable Energy. Whether this is done through solar photovoltaic panels, a small wind turbine, or another form of power generation, the electricity is used by the project and is directly tied to the building.

The second way is to purchase grid-sourced renewable energy via renewable energy credits (RECs), EAc6: Green Power. A REC represents the environmental attributes of the electricity produced from a renewable energy project and is a separate commodity from the electricity. When green power is produced, simultaneously, so are RECs. Every renewable energy facility then has two products available for sale: the electricity and the REC.

As on-site renewable energy becomes more economically viable and incentive programs drive installation even further, a higher number of LEED projects are using their space to generate their own electricity, specifically through solar energy. To finance these systems, LEED projects often enter into a solar power purchase agreement (SPPA).

An SPPA1 is a financial arrangement in which a third-party developer owns, operates, and maintains the photovoltaic (PV) system. A host customer agrees to site the system on its roof or elsewhere on its property and purchases the system’s electric output from the solar services provider for a predetermined period. This financial arrangement allows the host customer to receive stable, and sometimes lower cost electricity, while the solar services provider or another party acquires valuable financial benefits such as tax credits and income generated from the sale of electricity to the host customer.

In many instances, the developer retains the solar RECs (S-RECs). If this is the case, because the environmental benefit from the electricity can only be counted once, the LEED project is not allowed to claim that their electricity is generated by a renewable source, therefore disqualifying it from earning the LEED credits from EAc2: Renewable Energy.

What many project owners do not realize is that there is still a great option that allows them to earn EAc2, maximize their LEED points, and take environmental credit for their installation. By purchasing Green-e® certified RECs in an amount equal to 100% of the system’s output for a 10-year period, the project is able to earn up to 7 credits for EAc2: Renewable Energy. Because the value of

EARNING LEED® CREDITS WHILE SELLING BACK S-RECS

4775 Walnut Street, Ste. 230 . Boulder, CO 80301 . 877.810.8670 . www.renewablechoice.com

1 http://www.epa.gov/greenpower/buygp/solarpower.htm

S-RECs from a solar facility is currently much higher than nationally blended RECs from a renewable energy marketer, a LEED project is able to purchase 10-years’ worth of RECs for a very reasonable rate, making this a win-win for project teams.

Here is a hypothetical example: Let’s say there is a LEED project called the Sunshine Project. They choose to enter into an SPPA, install photovoltaic panels, and sell back the S-RECs to the service provider which allows them to lock in their electricity rate for 15 years. Let’s assume the PV system is estimated to produce 10,000 kWh/yr. of electricity, which is 15% of their total power use. They would need to purchase RECs to offset 10,000 kWh/yr x 10 years per the guidance from GBCI. So, at roughly $0.0025/kWh, it would cost this project $250 total to replace their S-RECs. They would also earn the full 7 LEED credits under EAc2: Renewable Energy.

Not only are projects able to earn up to 7 LEED points for EAc2: Renewable Energy, they are also eligible for another 3 LEED credits by maximizing EAc6: Green Power. Because the on-site and off-site renewable energy LEED credits are not mutually exclusive, projects are able to take advantage of both. This could earn a project 10 total LEED credits and the right to claim that they are taking responsibility for 100% of their electricity use.

Since 2003, we’ve been supporting green building efforts and have supplied RECs to more than 4,000 LEED projects. Contact us today to learn more about how we can help your company make the most of its renewable energy investment and earn the maximum amount of LEED credits available.

A SELECTION OF OUR LEED PARTNERS & BUILDINGS

EARNING LEED® CREDITS WHILE SELLING BACK S-RECS

4775 Walnut Street, Ste. 230 . Boulder, CO 80301 . 877.810.8670 . www.renewablechoice.com