Renewable energy is energy which is generated from natural sources such as wind and water (waves and hydropower) or the sun. It can also include other methods of generating power that do not rely on fossil fuel which are carbon neutral, or at least emit much lower levels of carbon, for example biomass.

Renewable energy is fed into the UK network like electricity from any other source. Green energy accounts for approximately 6% of that consumed in the UK. Government targets are 34% of the market to be renewable by 2020. Increased uptake of green energy products now will reduce the need for strict and expensive controls later.

Increasing demand means renewable energy is not always plentiful in supply. Any extra cost can sometimes be offset in a reduction of the Climate Change Levy (CCL), a tax on fossil fuel based energy for non-domestic usage. Using renewable energy now exempts you from paying the CCL. It is quite possible that in the future businesses and individuals will be made to pay more for not using green energy though penalties for exceeding carbon allowances.

At Energy Prices Direct, we’ll be pleased to advise you on the financial aspects of using renewable energy. But price is not the only consideration.  When you sign up to a renewable energy product the supplier must purchase the right amount of renewable energy to cover whatever power you use. Buying more renewable energy means less demand for electricity from polluting sources and thus helps to reduce carbon emissions. Although the electricity you consume may or may not actually be green in origin but you are helping to ensure more renewable energy is produced.