Four of the 10 cheapest energy tariffs currently available are renewable, showing that going environmentally friendly no longer means paying over the odds, new research has revealed.
All of the 30 cheapest green tariffs on the market are also more than £200 less than the current energy price cap, according to research from Compare the Market.
At present, the cheapest tariff overall is a renewable tariff by Eon on its Home Exclusive v2 deal, costing an average of £790 a year.
The four best-priced renewable tariffs – supplied by Eon, London Power, Robin Hood Energy and Powershop – all offer customers 100 per cent of their electricity from renewable sources and cost on average £832 a year for the average usage household.
Four of the 10 cheapest energy tariffs currently available are renewable, new data reveals
Demonstrating that the greener option is not necessarily more expensive, these four renewable tariffs are on average £294 cheaper than the current £1,127 energy price cap.
Renewable energy tariffs make up more than one third of the 30 cheapest tariffs available on the market offered by a range of large, medium and small energy suppliers.
Out of the 30 cheapest tariffs available, renewable tariffs cost an average of £851 – only £5 more than the average cost of the 30 cheapest non-renewable tariffs, which is £846.
A renewable tariff in most cases means that some or all of the electricity you buy is matched by purchases of renewable energy, which is then supplied back to the National Grid by your energy supplier.
The research found that London Power was the second cheapest renewable energy tariff at £840 a year on its My London fixed yearly plan.
London Power was launched in 2019 by Sadiq Khan, the Mayor of London, which only accepts customers at London addresses.
Powershop, a challenger supplier, is the only variable tariff on the list – its Top Shopper 2020 Issue 3 deal comes in at £854 a year.
|Supplier||Tariff||Rate Type||Annual Bill Value|
|Eon||Home Exclusive v2 EXCLUSIVE||Fixed||£790|
|Avro Energy||Simple and SuperConnect||Fixed||£832|
|Utility Point||Just Up 20 Wk32 EXCLUSIVE||Fixed||£835|
|London Power||My London fixed yearly plan 12m fixed aug 2020 v4||Fixed||£840|
|Green Star Energy||MSE 12M Fixed 1704 Paperless EXCLUSIVE||Fixed||£844|
|Avro Energy||Simple and mSavvy12M EXCLUSIVE||Fixed||£847|
|Avro Energy||Simple and uSavvy12M EXCLUSIVE||Fixed||£849|
|Powershop||Top Shopper 2020 Issue 3||Variable||£854|
|Outfox the Market||Fix’D 20 14.0||Fixed||£854|
|Source: Compare the Market. Companies in bold are green tariffs|
Outfox the Market comes in as the fourth cheapest tariff at £854 a year, on average, on its Fix’D 20 14.0 tariff.
Eon is the only Big Six supplier featured in the list, suggesting the larger firms are being pushed out by smaller firms again.
Peter Earl, head of energy at Compare the Market said: ‘Long gone are the days when going green cost the earth.
‘Renewable energy tariffs are in many cases cheaper than regular, non-renewable tariffs – as evidenced by the cheapest tariff currently available to buy in the UK, which is renewable.
‘Energy suppliers have woken up to a fast-growing appetite from households across the UK who want an eco-friendly option without paying through the roof – and as a result, we have seen a surge in the number of people switching to renewable energy tariffs.’
Out of the 30 cheapest tariffs available, renewable tariffs cost an average of £851 a year
He adds: ‘It is important to remember that if you do want to go green you should check the finer details of the energy tariff on offer.
‘Not all renewable tariffs offer 100 per cent renewable electricity – and very few are able to do the same thing for gas, as this part of the market is still in its infancy in terms of being renewable.’
All of the cheapest tariffs are currently hundreds cheaper than the energy price cap level, which is currently set at £1,126.
The energy price cap was introduced in January 2019 by the energy watchdog as a way of keeping down the cost for households across the UK.
Suppliers are not allowed to charge above the cap but they can offer cheaper deals for savvy customers.
Ofgem revealed in August that the current default tariff level is due to drop to £1,042 per year from October 1, saving homes £84.
However, the savings are bigger for prepayment meter customers who will see their bills drop by £95 from £1,164 to £1,069.
The cap will remain in place until April 2021 when the level will be reviewed.
Could you cut your energy bills… or help the planet and go green?
Millions of people could be needlessly overpaying for their energy as they fail to switch to providers who offer cheaper deal.
They may also be missing out on the opportunity to help the planet and fight climate change, by switching to green deals that offer electricity from renewable sources and more environmentally-friendly gas.
With our partner, Compare the Market, you can compare energy tariffs and exclusive deals.
Why not find out if you could save hundreds of pounds a year on your energy or go green?