Green Electricity is the electricity generated by a renewable source. The two most popular sources of green electricity are wind and solar energy because they do not add carbon dioxide to the atmosphere. Utility bidders are experts in helping companies switch from traditional to green business electricity.
As technology keeps improving, the overall cost of green electricity will reduce in the coming years. The concern about climate change, global warming and usage of fossil fuels has a huge impact on the popularity of green electricity.
What Are Green Tariffs?
There are four main types of tariffs offered by energy suppliers, namely fixed rate tariff, standard variable rate tariff, dual fuel tariffs and green tariffs.
Green tariffs are special utility rates for large-scale businesses or industries when they buy electricity from a certain renewable project with a long-term commitment to the environment.
Utility companies can supply green electricity generated from their own projects or independent suppliers. These companies often choose a power source within the region to support the local renewable projects.
Buying from a local project ensures a consistent supply for the business. The local utilities can readily handle the government procedures, which means the companies will reach their green goals faster.
Why Should You Invest in Green Tariffs?
Companies or businesses qualify for the green tariff based on certain eligibility criteria set by the local utilities. The four major advantages of green tariffs are:
- They increase the access to green electricity for large industrial businesses.
- They provide a sustainable and economical approach to meet the green energy goals of the business.
- They minimize long-term risks and costs associated with energy consumption.
- They help in feeding green energy to the national grid.
The downside of green tariffs is the cost. In some cases, they are expensive compared to regular tariffs. Currently, green tariffs are only for large-scale companies. The supplier for the green tariff program should be selected based on the level of renewable resources being used for creating electricity. Customers are not affected by price hikes if they go for a fixed rate green tariff.
Other Environmental Schemes by Governments
Feed-in-Tariffs – businesses that produce their own electricity receive incentives. The companies will not only be able to produce their electricity free of cost but also sell it to the national grid.
Renewable Heat Incentives – the companies are encouraged to produce their own gas from resources like biomass boilers, solar thermal panels etc.
Every supplier does not provide 100% renewable electricity. By law, the supplier needs to provide information about the resources being used. This data is essential in choosing the right green energy supplier. The data should clearly state what percentage of electricity comes from renewable sources and what comes from fossil fuels.
This information about fuel mix should also be updated regularly every year. If you want a truly green tariff, go for a supplier that offers 100% renewable electricity. Green tariffs also help the local utilities stay in business with creative solutions for renewable electricity demands.