Renewable energy tariffs - why you should get one.

Renewable energy is a hot topic these days. And if you want to help promote a clean energy future, you may want to know what renewable tariffs are available. And what role can these tariffs play in the drive to reach net zero? Let’s find out.

How do renewable energy tariffs work?

Energy companies get energy from various sources. Some of these sources are renewable, like:

• Solar farms.

• Wind farms.

• Hydroelectric power stations.

Now, the electricity you get at home comes to you via the National Grid. You can think of this as a massive network of cables that connects everyone in the UK to their power. It doesn't matter which energy company you're with, the electricity comes from this same place.

So, if the National Grid sends your home a mix of energy from renewable and non-renewable sources, how do renewable energy tariffs work?

When you sign up for a renewable tariff, your energy company promises to buy enough renewable energy to match the amount of electricity you use. They do this by buying something called Renewable Energy Guarantees of Origin (REGOs). These are like certificates that prove that a certain amount of electricity has been generated from renewable sources.

With a renewable energy tariff, you're supporting the production of renewable energy, even if the electricity coming out of your plug socket is not always 100% renewable.

And with REGOs, your energy company is putting more renewable energy into the mix, which helps reduce our overall reliance on fossil fuels and supports the growth of the clean energy industry.

Different types of renewable energy tariffs.

Let’s take a closer look at the different types of renewable energy tariffs you might come across, and the plus and minus points of each one.

Fixed-rate tariffs.

The fixed-rate tariffs are contracts where you pay the same amount per unit of energy for a set period, usually 12 or 24 months - whether energy prices in general go up or down.

Pros.

• Because you know exactly what you'll be paying per unit each month, it’s easier to budget.

• If energy prices increase, you're protected because your rate is locked down.

Cons.

• Sometimes fixed-rate tariffs have a slightly higher unit price to start with.

• If energy prices drop, you won't benefit from those new lower rates.

Variable-rate tariffs.

The variable-rate tariffs is where the price you pay per unit of electricity can vary during your contract. It all depends on wholesale energy costs.

Pros.

• If energy prices do fall, you'll pay less for your electricity.

• You're not tied into a contract, so you can easily switch suppliers if you find a better deal.

Cons.

• Because your bills can go up or down unexpectedly, budgeting is trickier.

• If energy prices increase significantly, your bills will too.

“Greener” energy tariffs.

The green energy tariffs often go beyond just buying the REGOs we mentioned earlier. They can involve commitments such as:

• Using some of your money to build new wind farms or solar panel parks.

• Contributing to reforestation projects to offset carbon emissions.

• Investing in local renewable energy projects, like solar panels on schools or community centres.

It’s important to remember that no matter which type of tariff you choose, the electricity itself still comes from the National Grid, the same as everyone else. These tariffs show how your energy company supports the development of renewable energy.

As with any important purchase, it pays to do some research, compare different options, and see which tariff works best for you.

How to choose the right renewable energy tariff.

So, how should you go about finding the right renewable energy tariff? What should you look for and what should you avoid?

Here's a simple guide to finding the right renewable energy plan for you.

Compare prices.

Before you commit to anything, it's important to shop around and compare prices. Fortunately, there are some handy price comparison websites that can help you do just that.

You typically enter your postcode and energy usage, and they'll show you a range of tariffs from different suppliers.

When comparing tariffs, keep an eye out for these key things:

• Unit rates. This is how much you'll pay for each unit (kilowatt) of electricity you use.

• Standing charges. This is a fixed daily amount you pay, regardless of how much energy you use.

• Exit fees. Some tariffs might have fees for leaving the contract early, so make sure you check for those.

Check the fuel mix.

It's important to remember that not all "renewable" tariffs are the same. Some might use a higher percentage of renewable energy sources than others. Energy companies usually publish their fuel mix information on their websites. (For example, our own fuel mix comprises over 85% renewable energy.) Alternatively, you can find info on fuel mixes on those comparison websites we talked about.

Look for certifications.

Think of these as proof that the energy company is seriously committed to the use of renewable energy. Here are a couple of key certifications to watch out for:

• Renewable Energy Guarantees of Origin (REGOs): We’ve already mentioned these. All energy suppliers in the UK that offer renewable tariffs have to provide these certificates. They prove that the supplier has sourced enough renewable energy to match the amount you use.

• Green Gas Certification Scheme (GGCS): If you're also looking for a renewable gas tariff, this certification makes sure that the gas has been sourced sustainably, such as from biomethane.

Armed with this information, you should be able to find the right renewable energy tariff for you.

Find out if E.ON Next has a renewable energy tariff for you.

We have several tariffs that can provide you with 100% renewable electricity. What’s more, two of our three tariffs below are what we call “time of use” tariffs. That means they have periods each day where electricity costs less per unit.

Let's take a quick look at some of our top renewable energy tariffs:

Next Pumped.

This is our tariff specially made for heat pump owners. It's powered by 100% renewable electricity,1 plus, it comes with two periods each day where you'll pay a much lower price for your electricity. It's a great way to save money on things like running your washing machine or dishwasher. Again, a smart meter is required and there are other T&Cs for eligibility.

Next Gust.

Are you looking to support renewable energy generation here in the UK? Well, the Next Gust tariff is powered by wind generators in the UK.2 It gives you fixed prices for 12 months, so you know exactly what you'll pay per unit. You'll need a smart meter, and as with other tariffs, it's worth checking the T&Cs to see if you’re eligible.

And finally…

Renewable energy is a key player in building a cleaner, more sustainable future for the UK's energy supply. It can help us move towards a healthier planet and a reliable energy supply for ourselves and future generations.

Remember that choosing a renewable energy tariff is a brilliant way to reduce your impact on the environment, and support the shift towards cleaner energy sources. You’re really making a difference. So, do your research, compare your options, and find the perfect renewable energy plan for you.

• 1. 1 Next Gust Fixed 12 month tariff. Electricity supply backed by agreements with wind generators in the UK. The electricity supplied to your home comes from the National Grid. Smart meter required, where eligible. Exit fees and T&Cs apply.
• 2. Electricity backed by 100% renewable sources. Electricity sourced from E.ON’s renewable assets, agreements with independent UK generators and the purchase of renewable electricity certificates. The electricity supplied to your home comes from the National Grid. Find out more at eonenergy.com/renewable.