What are Green Tags?

And how do they work with Energy Trust incentives?

Green tags are tradable financial instruments that represent the environmental attributes of electricity generated from renewable resources.

When Energy Trust provides funding for a renewable energy project, it takes title to a share of the project’s green tags proportional to its share of the above-market costs and in relation to the market value for those tags.

For example, if a project has $1 million in above-market costs, and Energy Trust provides $500,000 in incentives, Energy Trust may take one-half of the tags generated in each year of the project’s estimated operating life. If Energy Trust offers less funding than the tags are worth in credible green tag markets, Energy Trust will reduce its share of tags on a negotiated basis. Energy Trust holds the green tags in trust for the ratepayers who contribute the funds we invest in renewable projects.