Green Tariff Rider
A green tariff rider allows large customers to purchase renewable energy directly through their utility via a special rate rider. Utilities procure energy from specific renewable projects and pass through costs to participating customers, providing transparency and additionality without requiring customers to manage PPAs independently.
Riders typically fix energy and capacity charges over multi-year terms, include renewable energy certificates, and may offer tiered participation for multiple facilities. Utilities use riders to attract economic development while meeting corporate sustainability demand.
Program design must balance cost recovery for non-participants, ensure regulatory approval, and align with interconnection schedules for dedicated renewable projects.
Corporate buyers evaluate rider structures alongside virtual PPAs, choosing the option that best fits load profiles, credit considerations, and geographic preferences.
Technical Details
- •Utility-managed procurement with customer-specific tariffs
- •Includes REC delivery and reporting
- •May offer fixed or market-indexed pricing
- •Requires regulatory approval and sufficient enrollment
- •Often paired with new-build renewable projects
Why It Matters
Green tariffs expand the addressable market for utility-scale renewables without requiring bilateral PPAs. Tera tracks program availability, pricing, and underlying projects so corporates and developers can identify partnership opportunities.
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