As more people become mindful of their environmental impact, opting for a "green" energy tariff can seem like an easy way to support renewable energy. Many tariffs advertise up to 100% renewable sources, giving the impression of being eco-friendly at first glance.
However, not all green tariffs are created equal, and understanding the differences is key to making a truly sustainable choice.
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How Green Is My Green Tariff?
Even with a green tariff, it's important to recognise that the electricity you use still comes from the National Grid, which sources power from a mix of options, including coal, nuclear, hydro, and solar. While these sources are increasingly low-carbon, everyone receives the same energy blend, regardless of their tariff.
So, what makes a tariff "green"? Green tariffs offer eco-friendly options by having suppliers purchase renewable energy on your behalf to "match" some or all of your electricity consumption. Suppliers differ in their approaches, which means some tariffs are significantly greener than others. Research from Which? has categorised suppliers into three groups:
- The Greenest Suppliers: These companies consistently generate enough renewable electricity themselves to match customer usage or purchase the equivalent directly from generators. Choosing one of these suppliers ensures that you are actively supporting the growth of new renewable energy.
- Moderately Green Suppliers: These providers generate some renewable electricity or buy directly from generators, but this only accounts for a portion of their energy supply or they may have only recently started this practice.
- Less Green Suppliers: These companies do not exclusively offer 100% renewable tariffs and neither generate renewable electricity nor purchase it directly. Instead, they buy electricity on the wholesale market and purchase Renewable Energy Guarantee of Origin (REGO) certificates. These certificates certify that a certain amount of renewable energy has been added to the grid, but it does not necessarily mean the energy you use is sourced directly from renewables.
Which Green Tariff Should I Choose?
The prevalence of "greenwashing" can complicate the selection process. Greenwashing occurs when companies market their products as more environmentally friendly than they truly are, which is unfortunately common among green energy tariffs. Some suppliers may purchase unclaimed REGO certificates to label their energy as “100% renewable”, even if it isn’t directly sourced from renewable resources.
Finding a genuinely eco-friendly supplier can be challenging amidst many greenwashed tariffs. Which? has highlighted three top green providers—Octopus Energy, Ecotricity, and Good Energy—for their commitment to renewable sources. However, if you want a tariff that guarantees 100% renewable energy from the source, 100Green is the only supplier that meets this standard, providing renewable energy, including gas produced through anaerobic digestion.
It's also important to note that Ecotricity, Good Energy, and 100Green are exempt from the default tariff price cap because their higher costs reflect their commitment to supporting renewables. This means their tariffs are often among the most expensive on the market, but for those prioritising sustainability, they may be well worth the investment.
Time to Go Green?
While choosing a green tariff is a positive step, the best way to ensure you are using 100% renewable energy is to generate it yourself through solar panels. Producing your own solar energy significantly reduces your carbon footprint, harnessing clean energy while decreasing reliance on fossil fuels. In addition to the environmental benefits, solar power can substantially lower your electricity bills, and any excess energy generated can be sold back to the grid.
If generating solar energy isn’t an option for you, it’s still worthwhile to consider a green tariff. With a little research, you can find a genuinely sustainable option that aligns with your values. By making this choice, you send a clear message that you care about the carbon footprint of your electricity and expect the energy industry to contribute to reducing it.
What Else Can I Do?
Loop’s EcoMeter is a valuable tool to reduce your carbon footprint by providing a real-time carbon intensity forecast. This forecast indicates when renewable energy sources, like wind and solar, are generating a higher percentage of power on the grid. By adjusting your energy use to these peak green-energy times, you can directly reduce your household’s carbon footprint.
For instance, using your washing machine, dishwasher, or charging your electric vehicle during low-carbon hours means you're consuming energy primarily sourced from renewables rather than fossil fuels. This small shift in habits not only lessens the strain on non-renewable resources but also helps reduce overall carbon emissions.
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