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Whenever green power is discussed, questions quickly follow. How it is created? Is it legitimate? If I buy it will it double my energy bills? Confusion around green power could be the reason it’s not yet popular in Australia, with only 10 per cent of homes signing up for it so far.

We’ve done some digging to find simple answers to your most popular queries.

Why is green power important?

Over 90 per cent of electricity used in Australia is still generated from fossil fuels such as coal, and over 34 per cent of Australia.s emissions come from electricity generation. This makes the electricity sector the biggest single contributor to Australia’s greenhouse emissions. It’s pretty darn important we start looking at renewable sources to feed our homes and offices.

How does it work?

Green power offsets an agreed percentage of your household’s electricity consumption (e.g. 25, 50 or 100 per cent) with renewable energy. In Australia, we use wind, hydro, solar and biomass/biogas energy sources. When you purchase green power, your electricity company will have the chosen percentage of your electricity consumption matched into the electricity grid with electricity from renewable sources.

So does your house get powered by the renewable energy you purchase?

Not really. The agreed percentage doesn’t go directly into your home, it goes into the general energy grid that everyone uses. When more people choose green power, the demand for renewable energy in Australia will increase, in turn generating a greater supply of energy from renewable sources.

How much is it going to cost me?

If you choose to replace 25 per cent of your energy consumption with green power it will cost as little as $1 a week. You can always offset that cost by making small changes around your home.

Who offers it?

Most suppliers offer green power. Simply look at your provider’s website for more information about it. Before you sign up it’s important to be aware of any extra charges, so here’s a list of handy questions for you to ask.

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