Learn how companies can overcome high costs and slow returns when investing in green power. This LEED Green Associate sample question explains the best strategy.
Table of Contents
Question
A company is considering investing in green power for its operations facilities, but is reluctant because of the high capital investment, maintenance costs and slow initial financial returns. Which of the following is a practical strategy to help the company overcome these obstacles?
A. Relocate the company to a region that is better suited for harnessing renewable energy
B. Divert the company’s research and development funds to investment in large scale hydroelectric power
C. Host an on-site renewable energy generation system and agree to buy the power without owning the equipment
D. Hire employees to staff a new operations department in preparation for the maintenance needs of the new renewable energy equipment
Answer
The most practical strategy for the company to overcome the obstacles of high upfront costs, maintenance expenses, and slow initial financial returns when investing in green power is:
C. Host an on-site renewable energy generation system and agree to buy the power without owning the equipment
Explanation
A charrette is an intensive, multi-disciplinary workshop with the aim of developing a design or vision for a project or planning activity. Charrettes are often conducted to design such things as parks and buildings, or to plan communities or transportation systems. A charrette should take place at the beginning of the project, when the design team can engage with all the stakeholders, including the client, users, consultants, contractors, regulators, and community members. A charrette at this stage can help to:
- Establish clear goals and objectives for the project
- Identify opportunities and constraints for the site and program
- Generate creative and innovative ideas and solutions
- Foster collaboration and consensus among diverse perspectives
- Reduce conflicts and delays during later phases of the project
- Enhance communication and trust among the project team
The other options are not appropriate phases for a charrette. Post commissioning is too late to influence the design or planning of the project. During the design process, somedecisions may have already been made or some stakeholders may have been excluded. During the construction process, changes may be costly or impractical to implement.
This approach, known as a Power Purchase Agreement (PPA), allows the company to benefit from on-site renewable energy generation without the substantial capital costs and risks associated with owning and maintaining the equipment themselves.
Under a PPA, a third-party developer installs, owns, and operates the renewable energy system (such as solar panels or wind turbines) on the company’s property. The company then agrees to purchase the power generated by the system at a fixed rate, typically lower than utility prices, for a set period of time (usually 15-25 years).
The advantages of this strategy include:
- No or low upfront capital costs for the company, since the developer finances the installation.
- Predictable, often reduced energy costs over the PPA term, hedging against rising utility rates.
- No responsibility for operating and maintaining the equipment, which the developer handles.
- Ability to benefit from renewable energy with less complexity and risk than direct ownership.
- Potential to sell Renewable Energy Credits (RECs) generated by the system for additional revenue.
The other options are less suitable because relocating is disruptive and doesn’t address costs (A), diverting R&D funding reduces innovation (B), and hiring for maintenance is premature before deciding to own the equipment (D).
In summary, entering into a PPA to host but not own on-site renewable power generation equipment is often the most economically and logistically practical way for companies to green their energy supply while overcoming financial and operational hurdles. This makes option C the best answer to this LEED Green Associate practice question.
USGBC LEED Green Associate certification exam practice question and answer (Q&A) dump with detail explanation and reference available free, helpful to pass the USGBC LEED Green Associate exam and earn USGBC LEED Green Associate certification.