Carbon neutral vs GreenPower: Which is best?

Looking to live more sustainably and reduce your environmental impact? You’re in the right spot. While Australia’s energy grid largely relies on coal, you don’t have to support this industry directly.

There are two main alternatives to solar panels that can help you go green: GreenPower and carbon neutral energy. Though both might seem alike, there are distinct differences.

Let’s explore these options and if you have any questions, you can call our team on 1300 790 106 and talk through plans that include one or the other to see which suits your needs best.

GreenPower vs carbon neutral

Carbon neutral energy works by balancing out the carbon emissions from your power use. Your energy provider buys emissions reduction certificates to fund projects that cut carbon emissions. So, you pay for your energy, and your provider pays for these projects, but you’re really covering the cost.

GreenPower is a program based in Australia that directly funds local renewable energy projects. With this, you know your money is supporting Australian green energy.

On the other hand, carbon neutral energy can support projects anywhere, and while it often seems to come at no extra cost, GreenPower usually does involve additional fees.

Understanding GreenPower

GreenPower is a government program in Australia that helps fund renewable energy projects. You can choose to add GreenPower to your electricity plan, which means you pay extra to support green energy.

For instance, if you normally pay 25c per kWh, adding 50% GreenPower might raise your rate to 30c per kWh. This extra cost helps fund the creation of renewable energy to match half of your usage.

GreenPower supports over 500 renewable energy projects in Australia, including solar, wind, bioenergy, hydro, and landfill gas. These projects vary in size, from small to large-scale farms like the Stockyard Hill Wind Farm and the Darlington Point Solar Farm.

If you opt for 100% GreenPower, you can ensure that your energy use supports the generation of renewable energy, even if you’re not using it directly. If you use a lot of power, GreenPower helps offset your energy use with clean, renewable sources.

Providers offering GreenPower

Did you know that there are over 20 energy retailers in Australia offering GreenPower to residential customers?

• ActewAGL
• AGL
• Amber
• CovaU
• Diamond Energy
• Discover Energy
• Dodo
• EnergyAustralia
• Energy Locals
• Engie
• Ergon Energy
• Lumo Energy
• Momentum Energy
• Nectr
• Origin Energy
• OVO Energy
• Pacific Blue
• Powershop
• Red Energy
• Rimfire Energy
• Synergy
• Tango Energy

What does GreenPower cost?

GreenPower can be quite pricey, and the cost varies by retailer, generally ranging from 4 to 8 cents per kWh, depending on how much GreenPower you choose.

For an in-depth answer to this question, calling our Compare Energy experts on 1300 790 106 is the next thing to do.

Getting GreenPower is simple, too. You can call our team for advice on which plans already include GreenPower. Just keep in mind that the cost and percentage of GreenPower will differ between plans.

Understanding carbon neutral

Carbon neutral energy means your electricity use is balanced out by your retailer supporting projects that cut carbon emissions. These projects get certificates for reducing emissions, which companies buy to help fund its efforts. Retailers choose which projects to support, which can include anything from managing waste to planting trees.

Thousands of climate projects around the world offer carbon offsets. Here are some examples of what major retailers like Origin and AGL support through its carbon offset programs:

• Savanna fire management in Australia: Prevents large bushfires that produce emissions.
• Landfill waste management in Brazil: Reduces greenhouse gases from landfills.
• Tree planting: Absorbs carbon dioxide from the air.
• Energy efficiency programs: Promotes power-saving LED bulbs and water-saving shower heads.
• Renewable energy projects: Includes investments in solar and wind farms.
• NSW Westmere Native Forest Regeneration: Restores land that’s been over-grazed by livestock.
• Burns Stove project in Kenya: Provides energy-efficient cook stoves to communities.

These carbon neutral programs are excellent for the environment, and there are many more out there. While these projects might not cut Australian emissions directly, these can still help the environment in other ways.

Choosing an energy plan with Compare Energy that supports carbon neutral programs is better than not supporting any green initiatives, especially if GreenPower isn't an option for you.

Providers offering carbon neutral

In Australia, several energy providers offer to balance out your usage by purchasing carbon credits. While many retailers provide this option, it’s not always included automatically. Be sure to confirm with your chosen provider to ensure it offers this service.

• AGL
• Alinta Energy
• Amber
• Arcline by RACV
• Energy Locals
• Engie
• GloBird Energy
• Nectr
• Origin Energy
• Powershop

What does carbon neutral cost?

Generally, energy companies will include carbon neutrality in its services without extra charges. However, AGL does charge a small fee for its carbon offset program: $1 per week for electricity and 50c per week for gas. Origin adds about $3 to the cost of each 45kg LPG cylinder for Green LPG or around $1.50 per week for its Go Zero electricity program.

Remember, even if some retailers offer carbon neutral energy without a separate fee, you're still covering the cost indirectly through your regular energy bills. The company ensures it doesn't lose money while helping you reduce your carbon footprint.

How sustainable are you?

When it comes down to it, how much you choose to invest in sustainable living is up to you. Typically, GreenPower has a greater effect on reducing Australia's carbon emissions compared to carbon neutral programs, but it can also be more costly. Where does your budget sit?

If your budget allows, opting for GreenPower is likely the best choice. However, if it's not within your financial reach, selecting a plan with carbon neutral features is a good alternative.

To find the best option for your needs, talk to our Compare Energy team. We’re available on 1300 790 106 today, so give us a call and let’s talk about it.