Is Clean Choice Energy Legit
Clean Choice Energy is a relatively new company that provides 100% renewable energy to homes and businesses across the United States. Founded in 2012 by Tom Matzzie, Clean Choice Energy aims to make clean, renewable energy accessible to everyone. However, as the company has grown, questions have emerged around the legitimacy of their business practices and claims.
In particular, concerns have been raised about whether Clean Choice Energy is truly providing 100% clean energy as advertised. There are also questions around their customer service, hidden fees, and lawsuits that the company has faced. This article will provide an in-depth examination of Clean Choice Energy, analyzing the facts around their renewable energy claims, business model, and controversies.
Company History
CleanChoice Energy was founded in 2012 by Tom Matzzie in Washington D.C. with the goal of providing 100% renewable energy across America (https://cleanchoiceenergy.com/about-us). According to LinkedIn, CleanChoice Energy has become one of the fastest-growing businesses in America, ranking on the Inc 5000 and Deloitte’s Technology Fast 500 lists (https://www.linkedin.com/company/cleanchoice-energy).
Today, CleanChoice Energy operates in 19 states and the District of Columbia, providing businesses and residents with renewable energy through community solar and wind farms. They offer 100% renewable electricity plans powered entirely by solar and wind energy.
Business Model
CleanChoice Energy operates as a renewable energy supplier that purchases clean electricity like wind and solar power on behalf of its customers (https://cleanchoiceenergy.com/news/what-is-cleanchoice-energy). The company makes money through monthly subscription fees paid by customers, rather than long-term contracts. Customers can cancel or change their plan at any time.
CleanChoice offers different pricing plans depending on the state, ranging from around $0.125/kWh to $0.145/kWh. This is competitively priced compared to local utility companies (https://cleanchoiceenergy.com/news/what-is-cleanchoice-energy). The subscription fee covers the cost of renewable energy purchased from wind and solar farms, as well as renewable energy certificates (RECs) that offset non-renewable electricity usage.
For every unit of renewable electricity generated and fed into the grid, CleanChoice Energy purchases a REC. This helps drive demand and development of new renewable energy projects. The RECs act as proof that CleanChoice has invested in renewable electricity on the customer’s behalf (https://cleanchoiceenergy.com/news/how-we-bring-you-clean-energy).
Customer Reviews
CleanChoice Energy receives mixed customer reviews, based on ratings and complaints from organizations like the Better Business Bureau. According to the BBB’s rating of them, 62% of customers gave CleanChoice a positive review while 20% provided a bad rating [1]. Some common themes in positive reviews mention competitive rates, easy switching, and supporting renewable energy. However, a number of more critical reviews cite issues like inaccurate billing, misleading sales tactics, and poor customer service [2].
On the positive side, CleanChoice Energy customers applaud the convenience of signing up, clear pricing, and ability to choose 100% renewable energy. Many mention switching for environmental reasons or to lower costs. But dissatisfied reviews point to hidden fees, billing problems, and difficulty canceling as major issues. Some customers felt misled by sales representatives on rates or found prices rose higher than expected. Complaints also cite long hold times and unresponsive customer service when trying to resolve problems.
While experiences vary, CleanChoice Energy appeals to many seeking greener energy options and competitive rates. But the company has room for improvement addressing billing accuracy, fees transparency, and customer support. Prospective customers should research pricing and contract terms closely when evaluating CleanChoice Energy.
Renewable Energy Claims
CleanChoice Energy claims to provide 100% renewable energy from wind and solar sources to customers across the United States (CleanChoice Energy). According to their website, they partner with a network of wind and solar farms to supply renewable electricity to the grid on behalf of customers.
CleanChoice states that every time a customer signs up, they contract renewable energy from new wind and solar projects in the United States. They claim that for every unit of electricity a customer uses, CleanChoice Energy retires one renewable energy certificate (REC) to verify the renewable source (CleanChoice Energy).
To validate their renewable energy claims, CleanChoice Energy reports that they undergo independent audits annually. The audits verify that CleanChoice has purchased and retired enough RECs to fully match their customers’ usage (CleanChoice Energy). By tracking RECs, they can substantiate that their energy comes from 100% renewable wind and solar sources.
Reliability
Clean Choice Energy has faced some reliability concerns compared to traditional utility companies according to reviews. Power outages appear to happen more frequently for Clean Choice Energy customers based on complaints (BBB – Customer Reviews). The response time to fix issues also seems slower than local utilities. Customers have reported multi-day outages before problems were resolved, whereas utilities often respond within hours or a day at most.
Clean Choice relies on the local utility grid infrastructure, so outages are often tied to wider area utility issues. But the lack of direct control and responsiveness when outages occur is a common pain point mentioned. Customers drawn to renewable energy seem willing to accept minor reliability challenges. But numerous reviews suggest Clean Choice has room for improvement in outage prevention and faster issue resolution.
Hidden Fees
There have been some complaints about Clean Choice Energy having hidden fees. According to one Reddit post, a customer claimed Clean Choice Energy was a “scam” with hidden fees. However, Clean Choice Energy’s website states they do not charge any fees to switch suppliers. According to their FAQ page, “No, we do not charge any fees to switch to CleanChoice Energy.”
When it comes to their actual fee structure and transparency, Clean Choice Energy does not appear to have any hidden fees. They clearly outline their rates, fees, and terms on their website. There is a monthly subscription fee on top of the electricity rate, but this is disclosed upfront. Overall, the fee structure seems relatively transparent based on the information provided on their website.
Lawsuits & Controversies
CleanChoice Energy has faced some legal issues over its business practices. In 2023, a class action lawsuit was filed against CleanChoice in New York federal court alleging deceptive marketing and automatic renewal practices (Weinberg et al v. CleanChoice Energy, Inc., 2023). The plaintiffs claimed CleanChoice misled them into paying higher rates with automatically renewing contracts.
Another 2023 lawsuit filed in Delaware accused CleanChoice of breach of contract related to an asset purchase agreement (A2i Holdings, LLC v. CleanChoice Energy, Inc. et al, 2023). The plaintiff sought over $10 million in damages.
In Illinois, CleanChoice paid a $525,000 settlement in 2023 after allegations of deceptive marketing about renewable energy claims (CleanChoice Settlement a Win for Consumers, 2023). The settlement funds went to support low-income households in the state.
While CleanChoice has faced lawsuits, the company has worked to resolve issues. Outcomes like settlement agreements and amended business practices demonstrate CleanChoice’s efforts to address controversies.
Expert Opinions
There are mixed reviews from energy experts regarding CleanChoice Energy. The company has earned an A+ rating from the Better Business Bureau based on 16 customer reviews (https://www.bbb.org/us/dc/washington/profile/energy-service-company/cleanchoice-energy-inc-0241-235991173/customer-reviews). However, some analysts are critical of the company’s business model and question if customers truly save money compared to regulated utilities (https://www.consumeraffairs.com/solar-energy/cleanchoice-energy.html).
On the positive side, CleanChoice Energy makes it easy for customers to switch to renewable energy through wind and solar. Some customers report saving money on their energy bills. The company also gives back through donations to environmental nonprofits with each new sign-up.
Potential downsides are the variable rates that can change month-to-month, early termination fees, and some confusion around the actual source of electricity. Customers in regulated markets may not see significant savings compared to their local utility rates. There are also questions around CleanChoice Energy’s marketing claims of being “100% renewable”.
Overall, experts concur that CleanChoice Energy provides a legitimate renewable energy option, but encourage customers to read the fine print and do thorough comparisons before switching. The company has attained reasonable success, but experts advise approaching claims of major savings with healthy skepticism.
Conclusion
Based on the research into Clean Choice Energy’s history, business practices, customer reviews, claims, and legal issues, there are some legitimate concerns about this company that should give potential customers pause. While Clean Choice does seem to provide renewable energy to homes and businesses as advertised, complaints about misleading sales tactics, hidden fees, and a lack of transparency raise red flags. Lawsuits alleging deceptive marketing also indicate this company may not be as clean and honest as its name implies.
Overall, the available information suggests proceed with caution if considering Clean Choice Energy. Consumers should do their homework, read the fine print, and be wary of lofty claims or high-pressure sales tactics. While supporting renewable energy is admirable, there may be better, more transparent options in the marketplace. Those concerned about environmental impact may want to research local green energy producers or installing their own solar panels versus signing long contracts with companies that have a questionable reputation. In summary, while Clean Choice offers a service many find appealing, one’s hard-earned money is best spent with trustworthy businesses that uphold their promises.
