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Renewable energy procurement options
Companies have various options for procuring renewable energy, each with unique benefits and tradeoffs. The best choice depends on sustainability goals, budget, and risk tolerance, considering factors like cost, availability, contract flexibility, and environmental impact.
Spot-Market RECs
from existing projects
High-Impact RECs
supporting new projects
Virtual PPAs
supporting new projects
Fixed Cost
Contract Length
1 year
5–10yrs
12–20yrs
Price Risk
(over time)
Medium risk
No risk
High risk
Reputational Risk
Medium risk
Low risk
Low risk
Transaction cost & complexity
Low complexity
Medium complexity
High complexity
KEY FACTORS
Defining Your Renewable Energy Investment Strategy
Whether your priority is cost savings, price stability, or environmental impact, understanding your options is key to making informed decisions that maximize both financial and sustainability benefits.
Sustainability Goals
Does your company prioritize additionality and emissions reductions?
Risk Tolerance
Can your organization manage energy price risk or do you need long-term price stability?
Budget & Financial Strategy
What level of upfront investment and/or long-term commitment is feasible?
Reputation & Compliance
Are you seeking solutions that align with Greenhouse Gas Protocol best practices?
Operational Flexibility
Do you have the resources to execute a complex contract like a PPA, or do you need a simpler procurement option?
Spot-Market RECs
Spot-market RECs are the easiest and most affordable way for companies to meet basic renewable energy goals.
Procurement Model
Typically bought on an annual basis at the lowest available market price.
Sustainability & Impact
Sourced from existing renewable projects, spot-market RECs are not shown to drive new renewable project development. While they meet basic scope 2 accounting criteria, they may fall short for companies with SBTi commitments or ambitious ESG strategies.
Financial Considerations
Cost-effective but with limited environmental and reputational benefits. Organizations with strong sustainability goals may face scrutiny for relying solely on spot-market RECs.
High-Impact RECs
High-Impact RECs have many of the benefits of a traditional VPPA but do not require buyers to take energy price risks. They directly support new renewable projects and boost corporate sustainability impact.
Procurement Model
~5-10 year contracts at a fixed price providing long-term price stability.
Susainability & Impact
Directly support new renewable energy projects, ensuring additionality by providing material committed revenue that helps derisk projects. They align with best practices for scope 2 emissions reductions under the Greenhouse Gas (GHG) Protocol, as well as SBTi, RE100, and CDP renewable energy procurement best practices.
Financial Considerations
A simpler, more accessible alternative to traditional VPPAs while still delivering real sustainability impact.
Straightforward contracts enable fractionalized participation, allowing companies of all sizes to join with minimum participation requirements of only 1,000 MWh/year.
Virtual PPAs (VPPAs)
VPPAs are long-term contracts with developers that directly support new clean energy development. Buyers enter into a “contract for differences” with developers, to guarantee a fixed price to the developer regardless of energy prices. If the energy price is higher than the fixed price, the buyer receives the difference; if lower, the buyer pays the difference. The VPPA buyer takes the RECs from the project but does not take the physical power.
Procurement Model
VPPA’s typically are structured in 15–20 year contracts with a minimum load requirement of 100,000 MWh or more.
Sustainability & Impact
Deliver additionality and contribute to corporate climate goals. They align well with SBTi commitments and ESG strategies focused on measurable impact.
Financial Considerations
Complex, long-term contracts are best suited for investment grade buyers with strong balance sheets who are comfortable with managing derivatives. However, their complexity leads to high legal and accounting costs.
On-Site Renewable Energy
Companies can use on-site renewable energy (solar, wind, etc.) to generate their own clean power, reducing grid reliance and directly cutting emissions.
Procurement Model
Requires paying upfront costs for materials & installation, such as rooftop solar panels or on-site wind turbines.
Sustainability & Impact
Offers the most direct emissions reduction by using clean energy where it's generated. Maximizes environmental benefits by eliminating transmission losses and reducing Scope 2 emissions.
Financial Considerations
High upfront costs require significant investment and feasibility studies, while space and site suitability can be limiting factors. However, long-term savings come from reduced electricity costs, though ongoing maintenance and management are needed.
Let Ever.green help guide your decision making process.
We make renewable energy procurement simpler, smarter, and more impactful. Whether you're exploring options for the first time or refining your strategy, Ever.green provides the expertise and solutions to help you succeed.
Clarify Your Options with Expert Guidance
Understand the trade-offs between different procurement methods and identify the best fit for your sustainability and financial goals.
Build a Strong Business Case
Access market insights, financial implications, and technical expertise to make a compelling case for leadership buy-in.
Learn from Industry Leaders
See how top companies are navigating renewable energy procurement and leverage best practices to accelerate your own journey.
