GreenPower: Everything you need to know

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It may sound familiar to some, but to those who have never heard the word, GreenPower is a voluntary government-accredited program that allows consumers to make a financial contribution towards Australia’s renewable energy industry. You do this by instructing your electricity retailer to purchase green energy on your behalf, at your expense.

If that sounds a little vague, read on, because we’re going to take you through everything you need to know about GreenPower.

What is GreenPower?

GreenPower is a government-led initiative whereby retailers agree to offset some or all of customers’ power usage by purchasing electricity through accredited renewable generators. Since all electricity is fed into the same grid, regardless of how it was generated, GreenPower customers do not and cannot receive their electricity straight from a renewable generator unless they generate that power themselves (e.g. through rooftop solar).

Rather, retailers must match GreenPower customers’ electricity usage with purchases of renewable energy from government-accredited wind, solar, hydro and other renewable generators. This is typically done through the purchase of Large-scale Generation Certificates (LGCs). Renewable energy is then added to Australia’s electricity grid on the customer’s behalf.

Here’s a list of electricity providers who offer residential GreenPower options in Australia:

• ActewAGL Greenchoice
• AGL Green Energy 
• Amber GreenPower
• CovaU GreenPower
• Diamond Pure Plus
• Discover GreenPower
• Dodo GreenPower
• Energy Locals GreenPower
• EnergyAustralia PureEnergy
• Engie GreenPower
• Ergon Energy Clean Energy
• Lumo GreenPower
• Momentum GreenPower
• Nectr GreenPower
• Origin GreenPower
• OVO Energy GreenPower
• Pacific Blue GreenPower
• Powershop Australia GreenPower
• Red Energy Essential Green
• Rimfire Energy Green
• Synergy NaturalPower
• Tango Energy Blue

What are GreenPower’s sources?

GreenPower supports hundreds of renewable generators in Australia. Sources include:

• Wind: Wind farms convert wind energy into electricity.
• Solar: Solar farms capture sunlight and convert it into electricity.
• Hydro: Hydropower plants use the energy of moving water to generate electricity.
• Bioenergy: Biogas plants use organic matter to create electricity.

Find the exact list of accredited programs on the GreenPower website.

GreenPower price in Australia

GreenPower is a little more expensive than standard electricity, costing around five to 10 cents more per kilowatt hour (kWh) depending on the retailer. Hypothetically, if a household uses 400kWh of power in a month, at a rate of 20c/kWh, the usage part of the electricity bill for that month will be around $80. With an extra 5c/kWh for GreenPower, this same household would pay $100.

If you’re worried about your power bills blowing out, then you may elect to only have a portion of your electricity bill offset with GreenPower. Customers that opt for low levels of GreenPower — say 10% or 20% of their usage — may pay a fixed fee of $1 or $2 per week. 

Customers may also pay a rate per kWh for GreenPower — this is especially common for households that opt for 100% GreenPower. Again this rate is usually around 5 cents to 8 cents per kWh.

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How much does GreenPower cost per year?

While GreenPower is a really great initiative for the environment, it does add a considerable amount to your power bill. Therefore it is important to understand your budget and thoroughly consider whether or not you can afford GreenPower. To help give you an idea of how much GreenPower may add to your power bill, see the following hypothetical.

A standard Australian household consumes  18kWh of electricity every day and 6,570kWh annually.

Let’s consider three households:

• one without GreenPower,
• one that pays $2 per week for 20% GreenPower,
• and one that pays 5.5c per kWh for 100% GreenPower.

The below table represents how much more GreenPower households would pay, assuming an electricity usage base rate of 30c/kWh and ignoring supply charges and discounts for simplicity.

Annual GreenPower costs

Here we see that a household with 20% GreenPower would spend about $100 more on electricity per year compared to households without GreenPower. Customers who want their entire energy bill offset with GreenPower however will find themselves spending upward of $300 more every year for electricity.

Why does GreenPower cost more?

GreenPower costs more because it directly supports building new wind, solar, hydro and bioenergy plants in Australia. There are also fees to manage the program and integrate renewables into the grid. While it’s a bit more expensive, you’re helping fight climate change and invest in a cleaner energy future. As demonstrated, those on a budget can choose a smaller  percentage of electricity to be GreenPower.

Electricity plans with GreenPower add-on options

Here are some of the providers on our database that have GreenPower add-on options. The cost of GreenPower may vary between each provider. The amount of GreenPower included may also vary according to the plan and provider.

Why should you buy GreenPower?

Forget about the cost for a moment. We know spending extra on anything is a bit of a pain, but when it comes to GreenPower you are helping to secure Australia’s green energy future. According to the Clean Energy Council’s latest Clean Energy Australia report, 39.4% of Australia’s power was renewable energy in 2024.

Given that not everyone can afford to generate their own power through solar panels, GreenPower is one of the simplest ways to support the continuation of renewable energy production. It’s important to understand, however, that GreenPower is more of a donation than a service — while you pay more for electricity, you are not receiving any immediate benefit. The point of GreenPower is to contribute to the long-term benefits of reduced carbon emissions and increased renewable energy.

The pros and cons of GreenPower

Other green energy options

If your power bill is already stretching you thin every quarter — and we know that this is the case for many Australians — here are a few ways to keep your electricity bill under control while still supporting renewables:

• Rooftop solar: Harness the sun’s rays to cut your electricity bills and power your home. Pair with a home solar battery to use your overflow energy at night.
• Switch retailers: Choose an electricity retailer that does more for the environment. If you can’t afford GreenPower, you can choose a company like Diamond Energy or Energy Locals, which have been rated as some of Australia’s ‘greenest energy providers‘. Some of these retailers offset 100% of the carbon emissions associated with their customers’ electricity usage at no extra cost.
• Use less power: Cut your usage! This is good for the environment and your wallet. By using less power, you decrease demand on the grid, which means less electricity needs to be produced from fossil fuel generators.

Is GreenPower right for you?

GreenPower is a small but important initiative to help offset your carbon emissions and support the green energy infrastructure in Australia. At a relatively small cost, you could join in with the millions of Australians investing in the green energy future.

On the other hand, while paying an extra one or two dollars per week seems fairly manageable for households wanting to cover only a portion of their energy use, large households that opt for 100% GreenPower could easily be left out of pocket a couple of hundred dollars every year. There are many community benefits to GreenPower, but you will ultimately have to decide if it’s the right scheme for your household or business.

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