Is a 100% renewable electricity plan really renewable?
Partly, and the "partly" is worth understanding. In Texas, a 100% renewable plan means your provider has matched your usage with renewable energy certificates (RECs). The power that reaches your outlet still comes from the shared grid.
The short version
Every power plant in the ERCOT grid feeds the same wires. Once electricity is on the grid, nobody can send wind electrons to one house and gas electrons to another. Your home gets the same mix as the neighbor on a different plan.
So a renewable plan works on paper, through certificates.
What a REC is
A REC is a certificate for one megawatt-hour (MWh) of renewable generation. A wind or solar owner earns one when that MWh is produced. The certificate can then be sold separately from the electricity.
One MWh is 1,000 kWh. If you use 1,000 kWh in a month, your provider needs 1 REC to cover it.
In Texas, the PUCT rule on renewable verification says the retirement of a REC counts as one megawatt-hour of generation from renewable resources. Retired means the REC is used up and cannot be claimed again. Each certificate can only be used once.
What "100% renewable" means on an EFL
Texas rules set limits on the word. A provider can call a product "renewable" only if its whole fuel mix is renewable energy as defined in state law. Otherwise the label has to read "x% renewable," with the real percentage in place of x. That is in 16 TAC 25.476(d).
The Electricity Facts Label (EFL) must show two numbers: the renewable percentage of the product and the renewable percentage of the statewide average mix. That is in 16 TAC 25.475(g). The product percentage is rounded to the nearest whole number.
Providers also have to update each EFL by July 1 each year to show the percentages for the year before. If a product is new, the EFL can show an estimate, and it has to say the number will be verified later.
| Where to look | What it tells you |
|---|---|
| Renewable content line on the EFL | The product's renewable percentage |
| Statewide average line on the EFL | The baseline to compare against |
| Plan name and marketing | Wind, solar, or general renewable wording. Check the EFL for how it is backed |
| Certification mention | Whether a third party also checks the plan |
What Green-e adds
Some plans carry a Green-e Energy certification. Green-e is a nonprofit certification program. Its standard limits the sources that count and, for the certified energy, generally requires newer facilities. It also covers claims and verification.
Certification is optional. A plan without it is not automatically lower quality, and the PUCT rules apply either way. If a plan says it is certified, you can look the product up on the Green-e site.
Does it still matter?
It depends on what you want.
If you want to match your usage with wind or solar generation on paper, a REC-backed plan does that. If you want your own home to run only on renewable electrons at every hour, no Texas retail plan can promise that, because the grid does not work that way.
There is also an open debate. Buying RECs may not add new wind or solar by itself, since generators do not have to spend certificate income on new projects. Supporters say demand for RECs gives generators more revenue. Both views are widely discussed, and you can decide how much weight to give them.
Many shoppers choose a renewable plan because the price is close to a standard plan. Our guide on whether renewable electricity costs more in Texas covers that.
What to look for
- Open the EFL and find the renewable content line. Compare it to the statewide average on the same label.
- Check the wording. "100% renewable" and "x% renewable" mean different things.
- Look at the contract term, the fees, and the all-in price at your usage. A renewable label does not change those.
- If certification matters to you, check the Green-e listing.
- Read how the plan describes the source: wind, solar, Texas, or outside Texas.
Frequently asked questions
Q: Is the electricity at my house actually from wind or solar?
A: Not by itself. Your home receives power from the whole ERCOT grid. The plan matches your usage with certificates from wind or solar generation.
Q: Are RECs real?
A: Yes. In Texas they are issued and tracked by the grid operator's REC program, and a retired REC counts as one MWh of renewable generation under PUCT rules.
Q: Can a provider call a plan "renewable" if it is only part renewable?
A: Only with the percentage. The rules require the "x% renewable" format unless the whole fuel mix is renewable.
Q: Is Green-e certification required?
A: No. It is an optional third-party certification. The PUCT rules on the EFL apply to every provider whether or not a plan is certified.
Q: Where do I see a plan's renewable percentage?
A: On the Electricity Facts Label. It shows the product's renewable percentage and the statewide average.
Q: Does a renewable plan cost more?
A: Sometimes a little, sometimes nothing. Check the all-in price at your usage for each plan you compare.
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