GreenPower is 100% renewable energy you can buy from your electricity retailer. Set up in 1997, it is a government-managed program that allows businesses and households, including renters, to tap into clean renewable energy from their retailer.
Customers pay a small premium on their electricity bill which goes towards purchasing new sources of renewable energy generation. This puts more clean energy into the grid, over and above the amount set by the government’s Renewable Energy Target.
Over $500 million has been invested in GreenPower renewable energy generators since 2011. But now the National GreenPower Steering Group has commissioned an independent review to ensure the program continues to evolve in line with changes in the Australian energy market.
On this blog:
- Why buy GreenPower?
- Who can buy GreenPower?
- How much does GreenPower cost?
- Why is the GreenPower program being reviewed?
- Why GreenPower is better than ‘carbon neutral’ offers from your retailer
- Is GreenPower better than solar power?
- What’s the future for GreenPower?
Why buy GreenPower?
Most people buy GreenPower because they care about climate change. The downside is that it adds a small premium to your electricity bill. But the upside is the feel-good factor that comes from knowing your use of dirty grid electricity is offset by investment in renewable energy generation.
It’s an ideal solution if you:
- Are renting and solar isn’t an option
- Have solar and you want your grid electricity to be green too
- Want to support a faster uptake of renewable energy in Australia
Who can buy GreenPower?
GreenPower is available to households, renters, businesses, and other types of organizations.
How much does GreenPower cost?
GreenPower adds another 3 to 8 cents per kilowatt hour to the cost of your electricity. For example, instead of paying 25 cents per kilowatt hour for electricity, you pay 33 cents per kilowatt hour. The retailer sets aside the premium you’ve paid (e.g., 8 cents per kilowatt hours) which goes towards the purchase of renewable energy through the GreenPower program.
Why is the GreenPower program being reviewed?
The main reasons why the GreenPower program is being reviewed are:
1. Financing model close to use-by date
GreenPower is based on Large-scale Renewable Energy Certificates, or LGCs. LGCs are a government subsidy for big renewable power generation like solar farms. But the end date for the LGC program is 2030 and already the program is starting to wind down. This is causing an oversupply of LGCs and a fall in prices. What’s clear is that basing the GreenPower program on a financial mechanism which has a short use-by date is far from ideal!
2. Big businesses are going elsewhere for green power
Big businesses are not buying as much GreenPower as before. That’s because they are now buy their electricity through Power Purchase Agreements (PPAs) which are linked to renewable energy generation projects.
3. Retailers offering their own “green” products
Many retailers are offering non-accredited “carbon neutral” electricity deals which are increasing in popularity at the expense of GreenPower. Critics of “carbon neutral” electricity offers say that they’re a form of greenwashing by electricity retailers as they are not independently accredited.
Why GreenPower is better than ‘carbon neutral’ offers from your retailer
GreenPower is a good way to ensure the electricity you buy from the grid comes from renewable sources. GreenPower is independently accredited, unlike carbon neutral electricity offers which are not.
Is GreenPower better than solar power?
Solar saves you money on your electricity bills, whereas GreenPower costs your money. Of course, solar panels cost you money to install. But the great thing about solar is the payback is short – around 3-4 years – and after that the savings go straight to your hip pocket.
GreenPower is good if you want to be sure that all the power used in your home or business comes from renewable energy. However, another way of achieving the same result is to purchase battery storage.
What’s the future for GreenPower?
It is expected that GreenPower will continue to play a useful role to play in the household and business energy mix. Going forward, GreenPower will most likely be repositioned as a product for households, renters, and small businesses.
For climate conscious customers, buying GreenPower will be a price worth paying to help get Australia on track to 100% renewable energy.
Get in touch
Are you looking for ways to reduce your household or business’s carbon footprint through solar power and energy efficiency? If so, get in touch.
As a Clean Energy Council Accredited Solar Retailer, we’re experts in solar and battery storage. But that’s not all. We’re also a Registered Electrical Contractor with a range of energy efficiency and electrical solutions to make your property more comfortable, as well as greener and cheaper to run.
