SAVE THE PLANET while saving money
Want to do more to combat climate change? Switching to a green-energy tariff is one option, but almost half of us in the UK say we haven’t made the change yet because we didn’t know it was possible or we don’t know enough about green-energy suppliers. So, what are the benefits of signing up to one? We answer some common questions… WHAT IS GREEN ENERGY?
The electricity we use comes from different sources: burning coal or natural gas, renewables and nuclear energy. Currently, about 25% of the UK’S electricity comes from sources such as solar power, wind farms, hydroelectric and tidal power. Renewable gas, meanwhile, comes from anaerobic digestion, which involves breaking down biodegradable materials. In recent years, an increasing number of ‘green’ energy companies have sprung up, and many established suppliers are offering green tariffs alongside traditional ones.
ON A GREEN TARIFF, DOES ALL THE ELECTRICITY COME FROM RENEWABLE SOURCES?
Probably not. It varies from supplier to supplier, and each company’s fuel mix (the ratio of coal, gas, nuclear and renewable energy it uses) will be different. Typically, you’ll find a tariff with 100% renewable electricity but only 10% renewable gas, as it is harder to produce. If you’re on a green-energy tariff, the electricity supply to your home will still be drawn from the National Grid, the national ‘pot’ of electricity we all use. With a green-energy tariff, your provider commits to putting a certain amount of green energy back into the National Grid, which is worked out as a proportion of the amount of electricity you use. In other words, you’ll still be using electricity from non-renewable sources, but a certain percentage of that will be replaced with energy from renewable sources.
‘The actual gas and electricity you use doesn’t change,’ says Stephen Murray, energy expert at Moneysupermarket. ‘It will be the same as what your neighbours use. When you choose a green supplier, it is agreeing to ensure
that the energy you use is “matched” by the same amount of renewable energy it generates or buys.’
HOW DO SUPPLIERS OFFSET NON-RENEWABLE ENERGY?
Some suppliers create their own renewable energy, while others offset energy usage by planting trees or investing in climate-change programmes, for example. Bulb, the UK’S biggest green-energy supplier, matches every unit used with one produced and put on the Grid by a renewable source, including solar, wind or hydro. British Gas gets 43% of its electricity from environmentally friendly sources, while E.ON has announced it is moving towards 100% renewable energy.
‘Checking the fuel mix of your supplier (see below) will give you an indication of the environmental impact and what you’re paying towards,’ says Stephen. ‘Paying for a natural gas-fired plant to generate electricity, for example, will be more environmentally friendly than using coal.’
DOES GREEN ENERGY COST MORE?
‘Green-energy tariffs regularly feature at the top of the best-buy tables and now compete on price with any other energy plan,’ says Sarah Broomfield, energy expert at uswitch.com. ‘There are a growing number of “green-only” energy suppliers, as well as energy companies that offer low-carbon plans alongside other deals. Both fixed and variable green-energy tariffs are available, so you can lock in a set price for a year or longer, or have the flexibility to move tariffs more frequently if you’re comfortable with the fact the price can go up as well as down on a variable tariff.’ Compare tariffs at uswitch.com and energylinx.co.uk, which let you choose green options.