 GREEN ELECTRICITY THROUGH THE NATIONAL GRIDWritten by CAT's free information serviceemail: info@cat.org.uk; tel: 0845 3308373 or 01654 705989 Click here to download a printable version of this sheet (2 sides A4, PDF format, 50KB). Introduction For most of us, generating our own electricity is not going to be profitable, as electricity through the grid is relatively cheap compared to the costs of setting up a wind or hydro turbine or photovoltaic (solar) panels. However, we can all easily power our homes and businesses with renewable energy supplied through the national grid. This both supports the renewables industry and sends a message to the government that we want to support non-polluting forms of energy. You can now buy your electricity from any supplier, and many of them now offer either 'green tariffs' or 'green funds'. A green tariff will match your electricity use with energy from renewable sources. A green fund uses some of the money from your bill to support renewable energy installations or research, or other environmental projects. In order to meet a target of 10% of electricity produced from renewable sources by 2010, the government has introduced two measures: (1) Businesses are taxed under the Climate Change Levy for any gas and electricity they use. They are exempt from this tax if they can show with Levy Exemption Certificates (LECs) that the electricity they purchased was from renewable sources. For a worthwhile green tariff, suppliers should keep ('retire') all of the LECs they receive. (2) The Renewables Obligation requires suppliers to prove that a proportion of the electricity they sell comes from renewable sources. This proportion has been gradually increased to reach 10% by 2010. To prove they meet this percentage, suppliers are issued with Renewable Obligation Certificates (ROCs) when they buy energy from a renewable source. Those with more ROCs than they need to meet the target can sell them to companies who don't have enough. There is a limited supply of ROCs, and companies who do not meet the target must buy out the shortfall - this money is invested in renewable energy. By holding on to ('retiring') more than the target amount, companies can further increase demand, so encouraging development of renewable energy. What is Renewable Electricity? The energy sources that the government counts as renewable include wind, solar, some hydro, wave, tidal and biomass (wood and crop fuels). They also include is energy from waste - produced by the incineration of rubbish or from methane captured from landfill sites. Some people see this as a reasonable way of making best use of resources, but others fear that it creates an infrastructure that discourages waste minimisation and recycling, and that incinerators can have potentially hazardous emissions. Suppliers can tell you if any of their energy is generated from waste, and what percentage is from wind, solar or hydro power. Changing your supplier won't make any difference to the way your electricity comes to you through the grid, or the way you are billed, although before changing supplier you should confirm that your meter is compatible with the new company. Switching to a green tariff helps to promote the development of renewable energy, but you should still try to minimise your electricity consumption as much as possible. Every means of generating electricity has some environmental impact, including the energy and materials that go into manufacture and installation. Reducing your overall energy demand, means that less large-scale generating capacity and grid infrastructure will be needed. Making a few small changes to the way you use electricity in your home can make a big change to your overall energy consumption, and of course it will save you money in reduced bills. Low-energy light bulbs cost slightly more, but they will recoup the extra cost within a year. Over the lifetime of the bulb you will save over £30. Fridges and freezers account for a big chunk of electricity use, so make sure their doors are well-sealed, and that they are defrosted regularly. Appliances on standby can still use quite a lot of energy - turn them off at the plug when possible. See our Saving Electricity in the Home information sheet for more advice. Using electricity for heating should be avoided if possible, as it uses lots of energy. Take a look at our home heating with renewable energy and solar water heating information sheets for advice on more suitable and cost-effective ways to provide space and water heating. If you have no other heating option, one way to improve efficiency is to use a heat pump. These draw warmth from an ambient heat source (e.g. under the ground), and use electricity to boost it to the temperature required. If properly installed, a heat pump can produce three kilowatts of heat for each kilowatt of electricity used. However, you need a good site (e.g. for laying lots of pipe) and installation costs are fairly high, so they may not be for everyone. See our Ground Source Heat Pumps information sheet for more. There is still the option of installing your own renewable energy system and selling the electricity produced to the national grid. As mentioned before, a domestic grid-connected system is unlikely to be economic, as at present market prices it will probably not recoup its costs. However, the financial prospects could change if fuel prices rise above inflation, in which case your investment could suddenly become more rewarding. You'd also be promoting renewable energy, and helping to increase the market for these technologies and bring future costs down, so playing an important role in their development. See our information sheets on Photovoltaic Solar Power and Domestic Wind Turbines for advice on the options. Further Information and Contacts The Green Electricity Marketplace web site has information on renewable electricity suppliers, with details of prices etc. Good Energy will donate £20 per year to CAT for each CAT Member that signs up to their tariff, and give £10 off the first bill for CAT Members. Ecotricity will donate £15 to CAT for every CAT member that signs up to their domestic tariff, match the price of your local supplier and offer you four free energy saving light bulbs. Green Energy offer green tariffs including 'Green Energy 100'. Issue 85 of Ethical Consumer Magazine contained a report on the ethical background of electricity suppliers. Please note: mention of a company does not necessarily constitute a recommendation. Potential customers are advised to contact several companies to compare products, services and prices. Remember, you can also contact us with any further questions.
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