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Our Guide to Switching to a Green Energy Supplier in the UK
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The UK's energy mix is more diverse than ever before. Even a couple of decades ago energy sources would have been limited to coal, oil, or gas - all fossil fuels and terrible for the environment. Thankfully, nowadays the choice is significantly more varied, and ‘green energy' is much more commonplace. Consumers now have the power to select a green energy supplier that allows them to minimise their carbon footprint.
👉 In this article, we'll look at why choosing a green energy supplier is important and how consumers in the UK can switch theirs.
What is the UK's energy mix?
The UK's energy mix, once heavily dependent on carbon-intensive fossil fuels like coal, oil, and natural gas, has shifted significantly towards renewables. In 2023, fossil fuels accounted for just 33% of the UK's electricity supply, with gas at 31%, coal at just over 1%, and oil just below 1%. Low-carbon sources made up 56%, including 43% from renewables and 13% from nuclear. Imports and other sources, such as waste incineration, contributed 10%. Notably, the carbon intensity of UK electricity reached its lowest ever, averaging 162gCO2 per kilowatt hour.
This is encouraging news and aligns with the UK Government's target to decarbonise the UK's power system by 2035. However, a third of the UK's electricity still comes from fossil fuels, with natural gas being the primary source at 31%. This reliance on fossil fuels remains a significant challenge.
Why are fossil fuels an issue?
According to the UN, fossil fuels - coal, oil, and gas - are the largest contributors to global climate change, responsible for over 75% of global greenhouse gas emissions and nearly 90% of all carbon dioxide emissions. The burning of these fuels releases large amounts of carbon dioxide and other pollutants like sulfur dioxide, ozone, nitrogen oxides, and soot, which harm both the environment and human health.
According to NASA, in 2023, emissions from fossil fuels rose by 1.1%, reaching 36.8 billion metric tons of carbon dioxide. This increase in heat-trapping gases is the primary reason for rising global temperatures, with 2023 being the hottest year on record, 1.2 degrees Celsius warmer than the average for NASA’s baseline period (1951-1980).
This is why it's crucial for governments, companies, and individuals to tackle carbon emissions. By switching to a green energy supplier or tariff, we can reduce our carbon footprint and support the energy sector's decarbonisation. Consumer demand for green energy incentivises companies to offer sustainable alternatives, driving the transition towards a greener future.
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What is green energy?
Green energy is power generated from natural, renewable sources that do not emit greenhouse gases or harm the environment. This type of energy is crucial for reducing our carbon footprint and combating climate change. Unlike traditional fossil fuels, green energy sources are sustainable and environmentally friendly.
Green energy sources:
| Green Energy Source | Description |
|---|---|
| Solar Energy | Solar panels capture sunlight and convert it into electricity. This energy is abundant, especially in sunny regions, and can be harnessed on both large and small scales, from solar farms to rooftop installations. |
| Wind Energy | Wind turbines use the kinetic energy from wind to produce electricity. Wind farms can be located onshore or offshore, where wind speeds are typically higher and more consistent. |
| Hydropower | Also known as hydroelectric power, this energy source generates electricity from flowing or falling water. Dams and river currents are common methods for harnessing hydropower, which is highly efficient and reliable. |
| Biomass Energy | Biomass energy is derived from organic materials, such as plant and animal waste. These materials are burned or converted into biofuels to produce electricity or heat. This process helps manage waste and provides a renewable energy source. |
| Geothermal Energy | This type of energy taps into the Earth's internal heat, which can be used to generate electricity or provide direct heating. Geothermal power plants are usually located in regions with high geothermal activity, such as volcanic areas. |
Green energy vs clean energy
While green electricity is always renewable and environmentally friendly, clean energy refers to power that does not emit greenhouse gases but may come from finite sources or have environmental impacts during production.
| Green Energy | Renewable electricity, no greenhouse gas emissions, and environmentally friendly. Examples include solar power, wind power, hydropower, biomass, and geothermal energy. |
| Clean Energy | No greenhouse gas emissions but may not be renewable or could have other environmental impacts. An example of clean energy is nuclear power. Nuclear energy is considered clean because it does not produce carbon emissions during operation but relies on finite uranium resources and generates radioactive waste. |
Understanding the differences between green and clean energy is important for making informed decisions about energy use and supporting the transition to a sustainable energy future. By choosing green energy sources, we can reduce our environmental impact and help combat climate change.
What is a green energy tariff?
A green energy tariff allows consumers to buy electricity sourced from renewable resources. In the UK, these tariffs are becoming more common as providers shift towards more sustainable energy options, reducing reliance on fossil fuels.
There are two main approaches to green energy tariffs:
- Fully renewable supply: Some providers offer energy solely from renewable sources, ensuring that all electricity supplied is green.
- Hybrid approach: Other providers use a mix of renewable energy and fossil fuels to meet demand.
To certify the renewable origin of the energy, providers use Renewable Energy Guarantees of Origin (REGOs). These certificates, issued by Ofgem, verify that the energy supplied is sourced from renewable methods (Fuel Mix Disclosure, FMD). For each megawatt-hour (Mw/H) of green energy produced, one REGO is awarded.
How do green energy tariffs work?
Contrary to some misconceptions, green energy tariffs are distributed through the same National Grid as conventional tariffs, so no special connections are needed. While you use the same grid as your neighbors, your supplier matches some or all of the energy you consume with energy from renewable sources, certified by REGOs.
However, suppliers can buy REGOs to offset fossil fuel energy, leading to claims of 100% renewable energy that might not fully represent the source. Despite this complexity, green energy tariffs play a vital role in promoting renewable energy use and supporting environmental sustainability.
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Green energy FAQ
Are renewables as good as traditional energy sources?
Absolutely! Green energy sources are just as effective as traditional fossil fuels. Your home or business will operate the same as with conventional energy. The key difference is that you'll be reducing your carbon footprint and contributing to the fight against climate change.
Will a ‘green energy’ tariff cost more?
Green options may sometimes be more expensive due to the investment in sustainable projects and renewable technology. However, this isn't always the case. Your costs depend on your energy usage and the competitiveness of the deal you choose. Some customers even pay less while helping the planet. Additionally, the price of renewables can be influenced by the cost of gas, as renewable providers adjust their charges based on the wider energy market.
Additionally, individuals can generate their own renewable energy and sell excess power back to the grid, potentially reducing overall costs.
How reliable is green energy?
Green energy sources like solar, wind, and hydro have proven to be reliable. Technological advancements and energy storage solutions have significantly improved the consistency and dependability of renewable energy.
What are the environmental benefits of green energy?
Green energy produces no greenhouse gas emissions and has a minimal environmental impact compared to fossil fuels. By using renewable energy, we reduce air pollution, decrease carbon dioxide levels, and help mitigate climate change.
Can I switch to green energy easily?
Yes, switching to a green energy supplier is straightforward. You can compare tariffs online and choose a supplier, and they will handle the switch for you. There is usually no disruption to your service.
Does green energy affect the performance of my appliances?
No, green energy does not affect the performance of your appliances. Your home or business will operate just as efficiently on green energy as it does on traditional energy sources.
Are there financial incentives for using green energy?
Many governments offer incentives for using green energy, such as tax credits, rebates, and grants. Check with your local government or energy provider for available programs.
Why should you switch to a green energy supplier?
Long-term affordability
As we've seen in recent years, fossil fuel prices are vulnerable to a multitude of factors that are often beyond our control. For example, global events such as the war in Ukraine or high natural gas demand in Asia influence prices and can make the fossil fuel market incredibly volatile. Consumers suffer as a result of this by having to pay significantly more on their energy bills. Green energy offers a way out of this since the electricity supply will no longer be dependent on a finite source.
As research, funding, and focus on renewable energy increase, these energy forms will become more affordable. In contrast, fossil fuels are becoming scarcer and more expensive. Renewable energy technologies, such as wind farms and solar panels, may have high initial costs but are cheaper to maintain and operate in the long run.
Technological advancements are also making renewable energy more efficient. For example, in 2004, UK solar panels produced only 4 gigawatt hours of electricity. By 2023, this had soared to 15,225 gigawatt hours, accounting for about 3% of the country's total energy production. As these technologies continue to improve, green energy will become even more cost-effective, leading to lower energy bills for consumers and businesses.
Stronger economy
Thanks to North Sea oil and gas production, the UK was a net exporter of energy in the 1990s, however, the decline in North Sea production means that nowadays the UK needs to import energy to meet the UK's energy needs. This dependency makes the UK particularly vulnerable to fluctuations in global supply and demand and can result in increased energy costs.
By investing in green energy technology and facilities we can reduce this reliance on overseas energy imports and strengthen the UK economy in the process.
Increased energy security
Hand in hand with a strong economy is increased energy security in the UK. Green energy is generated from technology that allows us to harness power from the sun, wind, and geothermal heat. These are all readily available in the UK and offer an infinite supply, which means that there's no risk of the supply running out. The more domestic renewable energy sources that the UK adopts for its energy supply, the more self-reliant it will be. This will help to stabilise energy prices and ensure that the UK is never overly dependent on other countries for their energy supply.
Job opportunities
Green energy represents a big opportunity in terms of job creation - it has the potential to bring stable, high-wage employment across the UK, including to more rural areas that have traditionally been left behind when it comes to job opportunities.
Green energy also tends to be more labour intensive than fossil fuel technology which is traditionally more capital intensive and mechanised. This means that green energy technology has the potential to create greater job opportunities than traditional energy industries.
Environmental benefits
We've already touched on this at the beginning of the article but one of the most important advantages of switching to a green energy tariff is that it helps to cut down on harmful greenhouse gas emissions.
Over recent years we've seen the physical effects of global warming with our own eyes, from devastating forest fires in Australia and Canada to flooding of over one-third of Pakistan's landmass, to increased heatwaves; the implications of what will happen if we don't all take efforts to reduce carbon emissions are becoming all too real.
Governments and international bodies across the world are waking up to the situation and are increasingly adopting ambitious net-zero targets. However, since energy consumption accounts for 14% of UK carbon emissions, there's no chance of us achieving these aims unless we all play our part.
💡 This means that both companies and individuals have to look at how they can cut down on their carbon footprint. One of the simplest ways to achieve this is to switch to a green energy supplier.
Business advantages of switching to a green energy supplier
Prepare your business for the future
By switching to a green energy supplier, your business aligns with the government's net-zero target by 2050, a resolution from COP26 where over 190 nations agreed to reduce emissions and avoid a climatological catastrophe. This proactive step positions your business toward a sustainable future, ensuring smoother transitions as green energy becomes the norm.
Attract eco-conscious customers
Adopting green energy can attract eco-conscious customers and clients. A recent study by PWC shows that 80% of customers are willing to pay more for sustainably sourced services or goods. Highlighting your green initiatives can enhance your market appeal and foster strong industry relationships.
Financial and operational benefits
Green energy tariffs often have long-term cost benefits due to lower maintenance and operational costs compared to fossil fuels. Additionally, embracing renewable energy can protect your business from the volatility of fossil fuel markets, ensuring more stable energy expenses.
Regulatory compliance and incentives
Using green energy helps ensure compliance with future regulations aimed at reducing carbon emissions. Moreover, governments often offer incentives such as tax breaks and grants for businesses that adopt renewable energy, providing financial benefits alongside environmental ones.
“ Switching to a green energy supplier is not just a step towards sustainability; it's a strategic move that can offer numerous advantages for your business, from financial savings to improved customer loyalty and regulatory benefits. ”
Top green energy suppliers in the UK
- Ecotricity - Ecotricity guarantees green electricity from solar, hydro, and wind power. They reinvest profits into new green energy projects and offer tools to help customers assess and improve their environmental impact.
- 100Green (formerly GEUK) - 100Green supplies 100% renewable electricity and green gas from solar, wind, hydro, and anaerobic digestion.
- Good Energy - Good Energy sources 100% renewable electricity from over 2000 independent generators. They also provide renewable biogas and support carbon offset projects.
- Octopus Energy - Octopus Energy manages over 300 UK green energy producers, offering 100% renewable electricity.
- SO Energy - SO Energy customers can vote on the sourcing of their electricity from hydro, solar power, wind, or biomass.
Read the fine print
Green tariffs will vary among suppliers so it's crucial that you read the fine print to understand what exactly this means. For example, some green energy providers will match your electricity usage by giving back the equivalent in renewable energy to the National Grid. For others, this means that they promise to offset your energy usage by investing in carbon-offsetting projects (usually tree planting).
❗️Watch out for greenwashing - some suppliers may also offer ‘renewable energy', but double check what this actually means as often it can be limited to as little as 15%, meaning that the rest of the energy is provided by non-renewable sources such as natural-gas and coal.
To work out if the provider is as green as they claim to be, take a look at their website and search for their fuel mix disclosure which will detail their sources of energy. If it's still not clear, don't hesitate to get in touch with them and ask the question directly.
Looking forward
It can't be denied that fossil fuels have been devastating for the environment and our climate. For years our heavy reliance on these fuels has released harmful amounts of carbon dioxide and other pollutants into the environment. We are now waking up to the consequences of this and everyone (governments, companies, and individuals) must play their part to help mitigate the worst effects.
Achieving net zero requires that companies and individuals look at ways they too can reduce their impact on the environment, and more specifically, cut down their carbon footprint. One of the most significant sources of emissions comes from the consumption of energy and so we need to address this if we're serious about having an impact. One such way is to switch to a green energy supplier.
How Greenly can help companies become more green
Greenly supports companies in their efforts to reduce emissions and embrace greener practices. Our suite of services includes:
Carbon management
Greenly offers a range of services to help manage carbon footprints effectively:
- Measurement of GHG emissions: Track Scope 1, 2, and 3 emissions using advanced technology for a complete view of your greenhouse gas footprint.
- Custom action plans: Work with climate experts to develop tailored strategies, focusing on key areas for improvement and implementing effective changes.
Decarbonising your supply chain
Greenly helps engage suppliers and transition to low-carbon options, achieving greater transparency and effectively managing Scope 3 emissions. Sustainable sourcing initiatives build greener partnerships and reduce emissions throughout your supply chain.
Intuitive and seamless platform
Greenly’s user-friendly platform streamlines the process of calculating and monitoring your carbon footprint. It helps your business manage its environmental impact effortlessly, meet ESG goals, and enhance sustainability.
Why Choose Greenly?
Greenly offers comprehensive support for your green journey, from carbon measurement and custom action plans to supply chain decarbonisation and seamless platform integration. With Greenly’s help, your business can significantly reduce its environmental impact and achieve lasting sustainability.
Contact Greenly today to start leading the way in sustainability and build a greener future for your company.
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