A BEGINNER’S GUIDE TO SWITCHING TO A RENEWABLE ENERGY TARIFF
Did you know...?
- Switching to a renewable energy tariff could slash your carbon footprint by up to a quarter
- Switching to a renewable energy tariff will take less than 10 minutes
- Switching to a renewable energy tariff could save you money
I think it's what's technically known as a no-brainer!
But I know that it can be one of those things that we put off, because it's dull, it feels like it's going to be complicated and time consuming, and let's face it we're all busy and forgetful (or at least I am...)
Here at Sustainable(ish) HQ the mission is on to get as many people to switch to a renewable energy tariff as possible, and the aim of this post is to de-mystify the process, answer any questions you might have, and give you a (not so) gentle nudge to get on and switch!
What is renewable energy?
I think there are lots of different definitions out there - here's Wikipedia's version:
Renewable energy is energy that is collected from renewable resources, which are naturally replenished on a human timescale, such as sunlight (solar), wind, rain, tides and waves (hydro) and geothermal (things like ground source heat pumps).
It doesn't include fossil fuels, so coal, oil, gas, fracked gas, or nuclear energy.
What's wrong with fossil fuels?
Fossil fuels are formed from the remains of dead organisms over millions of years. They're a finite resource, so when they're gone, they're gone.
The extraction of fossil fuels is usually pretty destructive (think coal mines and oil rigs) and is an energy intensive process - it takes energy to create energy. And then it has to be processed/refined and transported.
And then on top of all of that, when fossil fuels are burned, they release carbon dioxide and other greenhouse gases into the atmosphere, which is causing the climate to change, and the planet to heat up.
Not Good.
Are all green tariffs created equal?
Sadly not. And there is potential for 'greenwashing' (marketing something as greener than it is) to go on.
Essentially you want a company that is supplying 100% renewable electricity, and that directly funds renewable suppliers.
Some companies will label nuclear as renewable, and others will make claims such as '33% renewable' which is what the UK energy mix is anyway (ie they're going to no additional lengths to support the renewables industry).
As with most things, it's complicated, and I'm not even going to pretend that I understand the nitty gritty. The good news is that there are ways to switch without having to spend hours reading fine print on websites and generally making our heads hurt. Big Clean Switch are one such, and are an energy comparison site whose goal is "to make it easy to switch to clean energy suppliers you can trust". Essentially they do all the hard work, the checking, and the due diligence, so we don't have to.
What about gas?
Here in the UK we're doing pretty well when it comes to renewable electricity, and we have the scope for much more.
Gas however is a tricky one. We're very reliant on it for cooking, and for heating and hot water, and 'renewable gas' isn't yet at a stage where it can replace 'natural (fossil fuel) gas'.
We need to look at weaning ourselves off gas longer term, and things like looking at induction hobs (that are fuelled by electricity) if you're replacing your cooker, and air source heat pumps will help with this. Ecotricity and Good Energy both have a small proportion of their gas as 'green gas' which is produced by anaerobic digestors, and some other companies will carbon offset their gas.
Isn't 'green energy' more expensive?
Not anymore!
For a while, it was true that renewable tariffs were more expensive, however in recent years there have been some 'new kids on the block' who have introduced cheaper tariffs, meaning that that are usually competitive with, if not cheaper than, traditional tariffs.
Connie is a member of our Sustainable(ish) online community who switched and saved £300!
What are REGOs?
REGOs (Renewable Energy Guarantee Origin) make my head hurt. I hold my hands up and say that I find the whole thing utterly confusing, so am probably not best placed to be trying to explain it, but here goes:
- When a renewable supplier (eg a wind or solar farm) produces a unit of electricity, it gets issued with a REGO certificate to prove that this energy has come from renewable sources.
- The energy itself gets sold into the wholesale market, where it joins into a big pool with all the other energy produced around the country, and this is then sold wholesale to the companies that supply our homes.
- The REGOs are then sold separately to energy companies so that they can prove that they have sourced a certain number of units from renewable energy.
- In the past there was an issue with the REGOs having little or no value, meaning that they could be bought very cheaply and the cost wouldn't be anywhere near covering the price of production.
- Now however, the price is on the up, and the money paid for REGOs is helping to support the renewables sector to grow.
My very basic understanding is that this is kind of the only way that energy suppliers can prove that they are paying for renewable energy, as all the energy that ultimately comes into our homes is currently from a mix of 'dirty' and 'clean' energy.
What if I'm tied into a fixed tariff?
Some tariffs have penalties if you leave before a fixed time period is up. BUT some of renewable suppliers will pay our exit fees for you if this is the case, so it's definitely worth checking.
What about my smart meter?
If you currently have a smart meter, it all depends on whether it's a first, or a second generation one.
If it's a first generation one, you might find that when you switch, it loses it's 'smart' capabilities and you have to revert to submitting meter readings.
If it's a second generation one, you should be ok and it will make the switch via the magic of things I don't really understand.
Again, it's worth checking with your intended new supplier about this.
What if I'm in a rental property?
If you pay your bills, then legally you are entitled to switch and source your energy from whoever you like.
If you're landlord pays your utilities, then it's a bit more difficult, but definitely worth asking them if it's something they would look into.
What if I've got solar panels?
If you've got your own solar panels, you're a bonafide eco-hero, and it shouldn't make any difference at all. Your new company should be able to sort it all out, including your FIT etc.
Can I still get Warm Home Discount?
It depends on the size of the supplier - once a company has over 250,000 customers, they are obliged to provide it. Many of the renewable energy companies are over this size now, so do check.
OK, I'm convinced, what's the easiest way to switch?
For #Switchtember we've teamed up with Big Clean Switch because I genuinely think it's the easiest way to switch and takes the stress and research headaches out of it. And you still get to pick the tariff and supplier that works best for you.
It makes it as easy as 1, 2, 3:
1. Grab a recent energy bill and visit the Sustainable(ish) Big Clean Switch page
2. Enter your details and get a free quote
3. Pick the one you like best and switch!
What happens when I switch?
Nothing! Except your bills will arrive from a different provider, and you will have a warm fuzzy glow knowing that you've taken a big step (that didn't feel big at all) towards cutting your carbon footprint and helping the climate crisis. The energy still comes to your home through the same pipes and wires, and still comes from the central pool of all the energy produced in the UK. Imagine that that central pool is indeed a pool, and that it's being fed by two taps - one from fossil fuels and one from renewables. When you switch, the fossil fuel tap runs a little slower, and the renewables one a little faster. Meaning that overall, the pool is getting cleaner. And the more people who switch, the cleaner it gets quicker!
