Common Mistakes to Avoid When Sourcing Renewable Energy
As more companies commit to sustainability goals, sourcing renewable energy has become a strategic priority. Yet, despite good intentions, many organizations fall into common traps that can undermine their efforts. In our September 2025 webinar, we highlighted several recurring mistakes and offered practical guidance for navigating the renewable energy landscape.
1. Misunderstanding Renewable Energy Certificates (RECs)
One of the most overlooked aspects of renewable energy contracts is the flow of Renewable Energy Certificates (RECs). These certificates are essential for verifying that the energy a company purchases is genuinely renewable. If RECs are not properly allocated or tracked, a company may not be able to claim the environmental benefits it intended.
RECs can be bundled (paired with the actual energy from the same source) or unbundled (purchased separately from the energy). While bundled RECs offer stronger marketing value and regional impact, unbundled RECs are more cost-effective and widely available. Either way, ensuring RECs are Green-e certified or properly retired is crucial for legitimacy.
2. Delaying the Decision-Making Process
Timing is everything. Waiting too long to act on renewable energy opportunities can result in missed incentives, higher costs, or less favorable contract terms. For example, under the One Big Beautiful Bill Act (OBBA), companies must begin on-site solar projects before July 2026 or complete them by end of 2027 to qualify for up to 50% tax credits. These incentives are driving a surge in installations, and companies that hesitate may lose out.
Additionally, the interconnection permitting process for all assets on the grid is facing a significant backlog – driving further delays. Most contracts signed in 2025 are for assets that are coming online in 2027-2029.
3. Failing to Explore Competitive Options
Many organizations settle for the first offer that comes their way—often from a vendor with a compelling pitch. But in both regulated and deregulated markets, companies have access to a variety of energy sources and providers, including:
Traditional utilities
Alternative energy suppliers
Community solar programs
Green tariffs and retail agreement
Shopping around and requesting multiple quotes—including for brown power, bundled green, and unbundled green—can reveal significant savings and better technology options.
