Why is Newton Power Choice no longer providing options for buying more electricity from renewable sources?
In the past, Newton Power Choice has purposefully supported the development of renewable power by purchasing more Renewable Energy Certificates (RECs) than is required by state law. The money generated from RECs provided an additional revenue stream for renewable energy project developers. By purchasing more RECs than was required and contributing to that revenue stream, Newton was helping renewable energy developers build more renewable projects in the New England region.
However, this year the federal government has substantially slowed the addition of new renewable energy projects by sunsetting tax credits, ending funding programs, slowing new permits, and seeking to revoke existing permits. As a result, there is now a shortage of RECs, and buying the RECs that are available does not result in the development of new renewable energy projects. (You can read about this issue in greater detail here: newtonma.gov/recs.)
For that reason, the 2026 – 2028 Newton Power Choice electricity supply contract does not include the purchase of additional RECs above the state requirement. Accordingly, the program structure has changed from three options in the past to a single option that meets minimum state renewable energy requirements. To be clear, the new Newton Power Choice contract for the next two years does not include additional voluntary RECs because, at this time, such additional RECs do not facilitate the development of renewables.
Nonetheless, the City of Newton wants to support renewables. To that end, Newton Power Choice is exploring two initiatives:
- A community solar project that would enable an even lower price for Newton Power Choice participants that are eligible for Eversource’s low-income rate. This would not affect the price for non-low-income electricity customers.
- Direct support for the development of new renewable energy projects. The new Newton Power Choice price does not include the cost of any such project as we are still exploring possibilities.
The City will provide more information as both initiatives evolve.