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.
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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 receive their electricity straight from a renewable generator.
Rather, retailers must match GreenPower customers’ electricity usage with purchases of renewable energy from government-accredited wind, solar, hydro and other renewable generators. That renewable energy is then added to Australia’s electricity grid on the customer’s behalf.
GreenPower is a little more expensive than standard electricity, costing around five to 10 cents more per kilowatt hour (kWh) depending on the retailer. Confused? Hypothetically, if 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 family 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. The money collected through the GreenPower scheme is put toward investment in Australia’s renewable energy sector, making it easy for customers to contribute toward the future of green energy.
What does GreenPower cost me?
Customers that opt for low levels of GreenPower – say 10% or 20% of their usage – sometimes pay a fixed fee of one or two dollars per week. Customers may also pay for GreenPower on a rate per kWh of electricity usage – this is especially common for households that opt for 100% GreenPower. Again this rate is usually around five to 10 cents per kWh. 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, take the following illustration.
A standard household uses 18kWh of electricity every day. Assuming this figure is consistent for one year, the average Aussie household would therefore consume 6,570kWh annually. Let’s take three hypothetical 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
| No Green Power | 20% GreenPower | 100% GreenPower |
|---|---|---|
| $1,971 | $2,075 | $2,332 |
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.
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, and support renewables energy:
- Check with your retailer to see if they have flexible GreenPower options. Some retailers will give you the option to choose as much or as little GreenPower as you like, so you can contribute when it suits your wallet.
- Switch to an electricity retailer which 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. This is good for the environment and your hip pocket. By using less power, you’re decreasing demand on the grid, which means less electricity needs to be produced from fossil fuel generators.
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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.
Here are some of the cheapest published deals from the retailers on our database that have a GreenPower option and include a link to the retailer’s website for further details. These are products from referral partners†. These costs are based on the Ausgrid network in Sydney but prices may vary depending on your circumstances. This comparison assumes general energy usage of 3911kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision. The annual cost estimates for the plans below may not include the cost of GreenPower. The extra cost of GreenPower may vary between retailers.
Here are some of the cheapest published deals from the retailers on our database that have a GreenPower option and include a link to the retailer’s website for further details. These are products from referral partners†. These costs are based on the Citipower network in Melbourne but prices may vary depending on your circumstances. This comparison assumes general energy usage of 4000kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision. The annual cost estimates for the plans below may not include the cost of GreenPower. The extra cost of GreenPower may vary between retailers.
Here are some of the cheapest published deals from the retailers on our database that have a GreenPower option and include a link to the retailer’s website for further details. These are products from referral partners†. These costs are based on the Energex network in Brisbane but prices may vary depending on your circumstances. This comparison assumes general energy usage of 4613kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision. The annual cost estimates for the plans below may not include the cost of GreenPower. The extra cost of GreenPower may vary between retailers.
Here are some of the cheapest published deals from the retailers on our database that have a GreenPower option and include a link to the retailer’s website for further details. These are products from referral partners†. These costs are based on the SA Power network in Adelaide but prices may vary depending on your circumstances. This comparison assumes general energy usage of 4011kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision. The annual cost estimates for the plans below may not include the cost of GreenPower. The extra cost of GreenPower may vary between retailers.
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, about 67% of Australia’s power was generated by burning fossil fuels in 2021, whilst 32.5% was generated by renewable generators.
Given that not everyone can afford to generate their own power through solar panels, and even that comes with its own question marks, GreenPower is one of the simplest and most regular 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 long-term benefits speak for themselves.
The Pros and Cons of GreenPower
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Is GreenPower right for you?
GreenPower is a small but important initiative to help offset your carbon emissions and support the green energy infrastructure Australia is investing in. At a relatively little 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 have to decide if it’s the right scheme for you and your household.
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