Green up Australia: Cheapest green energy plans could save you over $100

By Katherine O'Chee ·
Family with green electricity

As a growing number of Australians look for ways to reduce their carbon footprint, the good news is that going green doesn’t have to cost you an arm and a leg. 

In fact, new research drawn from our 2020 Mozo Experts Choice Energy Awards shows that the cheapest green electricity plan in your state could actually be better value than the average electricity plan. 

Depending on your distribution zone, a household with average energy usage* could potentially save between $32 (in Northwest Melbourne) to $257 (in Adelaide) per year on the cheapest green plan, as opposed to the average electricity plan.

Sydneysiders could snag $166 in potential annual savings, while Queenslanders and ACT residents could also save as much as $105 and $106 a year, respectively.

Light bulb graphic showing potential savings with the cheapest green electricity plans

“While an increasing number of people are looking for ways to encourage more green electricity in the grid, they also don’t want to pay more than they need to,” said Mozo’s expert judge, Peter Marshall.

“The perceived cost of green energy has often been a deterrent for many people to make the switch but as our analysis shows, households and businesses can actually save money by going green instead of sticking with the default market offer.” 

To qualify for the green award categories, retailers had to tick a few boxes: firstly they must only generate renewable energy or purchase it from a renewable power source, and secondly they promise to offset any energy their customer uses by purchasing carbon credits, or by offering 100% GreenPower.^ In total, 14 retailers were eligible. Two of them stood out from the rest:

Powershop

  • Best green electricity residential (NSW, VIC, QLD and SA)
  • Best green business electricity (QLD)  

Powershop has proven it’s possible to back renewable energy while still keeping prices low. 

The Powershop Shopper Market Offer was ranked the cheapest green residential energy deal in NSW, Victoria, south-east Queensland and South Australia. 

But that’s not all - the product also snagged our 2020 Mozo Experts Choice Award for best Small Business Green Electricity in Queensland.

Powershop’s green record is impeccable too. As a government-accredited carbon neutral business since 2014, Powershop carbon offset all their customers’ electricity usage, at no extra charge. Plus, 100% of their electricity generated is renewable.

Energy Locals

  • Best green business electricity (NSW, VIC, SA and ACT)
  • Best green residential electricity (ACT) 

Energy Locals was the other top performer for green energy this year, catching our judges’ eyes in the small business category. Their Business Saver product stole the limelight winning four 2020 Mozo Experts Choice Awards for best Small Business Green Electricity in NSW, Victoria, South Australia and the ACT. 

The Energy Locals Online Saver also won the best (residential) Green Electricity award for the ACT. 

Wondering about Energy Locals’ green credentials? Their energy is carbon neutral, thanks to their purchase of international carbon credits at no additional cost to the customer. They also support the GreenPower program and buy electricity from a renewable energy source, Cape Byron Power. 

If you’re interested in seeing which other energy retailers offer Australia’s best electricity and gas prices, be sure to stop by our 2020 Mozo Experts Choice Energy Awards page. There, you’ll find a full list of winners and have access to the award methodology.

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*Calculations assume that average energy usage per year is 5,000 kWh in NSW, QLD and SA, 5,262 kWh in Victoria, and 4,000 kWh in the ACT. 

^ GreenPower is a government-accredited scheme where individuals and businesses can pay a little extra to help drive more energy produced from renewable sources into the grid.

Katherine O'Chee
Katherine O'Chee
Money writer

Katherine O’Chee is Mozo’s international money transfer and forex expert and business banking writer. She keeps Mozo’s readers on top of the latest news and writes in-depth features to inform and help Australians make smarter financial decisions. Her work has been published in major media outlets including Sydney Morning Herald, SBS News and Bangkok Post. She has a Bachelor of Arts (Media and Communications) from the University of Sydney.