E.ON U.S. - Green Energy Program

The KU/LG&E Green Energy program is voluntary. By purchasing Green Energy, you are taking action to expand the generation capacity of Kentucky renewable power.

Since renewable energy is more expensive to develop than coal-based energy, it could not be built unless energy consumers are willing to pay the difference.

In other words, if we do not pay for it, it will not come. Or, we must pay the difference to make the difference.

Detailed version of how it works

As an example, if it costs six cents per kilowatt hour (kWh) to produce and distribute coal-based electricity, and it costs eight cents per kWh to produce hydroelectric power, consumers would need to pay eight cents per kWh to justify the production of hydroelectric energy. However, most consumers are not willing to pay extra for renewable energy. Green power developers will therefore produce and deliver their renewable electricity onto the transmission grids for the cost of coal-based energy (six cents per kWh), and then they must find volunteers to pay the difference (two extra cents per kWh). The "difference" (which represents the environmental benefit of the green power, or the absence of carbon emission) is sold in the form of Renewable Energy Certificates (RECs), also knows as Green Tags or Tradable Renewable Certificates (TRCs). Voluntary purchases of these Green Tags are the primary driver behind the current growth of renewable energy in the U.S.

More specifically KU and LG&E produce and deliver coal-based energy onto the regional grid and into your home for five-to-six cents per kWh. Although this electricity does contain about 1% large-scale hydropower because we must develop large-scale energy supply at the lowest possible cost, there are smaller renewable energy developers who are building and enhancing renewable-energy generators, and delivering that energy onto our regional grid. KU and LG&E therefore offer to buy Green Tags from these suppliers (currently 100% from the Mother Ann Lee hydroelectric plant on the Kentucky River) on your behalf if you choose to pay the difference for the higher cost of the carbon-free electricity. By doing so, you pay for the supply and distribution of your electricity (five-to-six cents per kWh) plus the extra amount for the environmental benefit of the specific renewable energy electrons that are on the grid. Since KU and LG&E are offering Green Energy at $5 per block of 300 kWh, this means that you pay about 1.7 cents extra per kWh (for each block of Green Energy that you purchase).

For your convenience, KU and LG&E allow you to pay the difference at whatever level you choose. The average KU and LG&E household consumes an average of 900 kWh of electricity each month, and Green Energy is being offered for $5 per 'block' of 300 kWh. Therefore, to offset the carbon impact of the average household, you may purchase three blocks (900 kWh) of Green Energy for $15 per month, or you may personalize your level of purchase by using the Green Energy Calculator.

At whatever level you choose to participate, we ensure that for every kWh of Green Energy you purchase, the equivalent amount of renewable energy is being delivered onto your Kentucky electric grid in the place of a kWh of carbon-based electricity. It is important to note that this Green Energy program is primarily being sourced from new renewable energy in Kentucky.

If you decide to purchase Green Energy at any level, thank you very much for making the difference by paying the difference. Thank you for helping to turn the green on!

Enroll in Green Energy Now!
LG&E Customers KU Customers