How does the RPS reduce renewable energy costs?
The RPS is the best policy to ensure we meet resource diversity and environmental goals at the lowest cost. By stimulating a long-term market for renewable energy, the RPS reduces the investment risk associated with building renewable facilities. Lower investment risk promotes cost-effective financing of new projects. Increasing the deployment of renewable technologies reduces manufacturing, installation, maintenance, and other costs over the long term. At the same time, competition among a variety of renewable sources to meet the RPS also helps drive renewable energy prices down. Using renewable energy credits (see below) creates additional savings. What are renewable energy credits and why should credit trading be used to meet an RPS? A system of tradable renewable energy credits (RECs) provides electricity generators with a simple and flexible means for achieving renewable energy targets. One REC is created for every unit of renewable electricity generated. Renewable energy generato
