One of the challenges of trying to go green either as a business or as a consumer is sourcing green energy that doesn’t break the bank. Seeing an opening in the marketplace, Green Mountain Energy has become the leader in this field providing “100% pollution free electricity.” In addition to providing green power in their local markets, Green Mountain also works with utilities across the country to deliver green power. In New York, for example, Green Mountain works with National Grid (a regional power company) to supply green energy. But here’s the rub, green costs extra green. According to Green Mountain’s website:
The price for Pollution Free electricity is 1.5 cents more per kWh, which amounts to an estimated premium of $9 more per month in addition to your National Grid charges for electricity, based on average usage of 571 kWh.
As we have seen in the hybrid car market, price is a factor–a strong factor. Just as most US consumers seem unwilling to pay a $3000 premium for a hybrid car (both the Accord and Escape hybrids are $3k higher than their “brown” brethren and aren’t selling particularly well) it is easy to predict that not all consumers will pay more for green energy. Fortunately for Green Mountain, enough consumers and businesses have put their green money where their green mouth is, shelling out the extra 1.5 cents per kilowatt. They have also done a good job covering all the green bases, selling carbon offsets along with residential and commercial energy:
Commercial Customers: Through our eMission Solutions division, Green Mountain is uniquely positioned to deliver innovative and cost effective carbon reduction solutions to commercial sector clients seeking to improve their environmental position. In addition to carbon offset/renewable energy credit products, Green Mountain offers a comprehensive suite of services including assistance with voluntary emissions and corporate sustainability reporting, green branding and marketing strategy, and carbon sequestration projects.
Individual Customers: The eMission Solutions division also offers individual consumers the ability to offset the carbon footprint from their household’s activities through BeGreen Carbon Offsets.
From a Marketing for Good standpoint, Green Mountain Energy has an enlightened positioning that gives it a clear competitive advantage versus its brown rivals. Assuming it can figure out how to drive its costs down (or its competitor’s up), it will surely enjoy energetic growth for years to come.