Green Energy Plans Australia: Renewable Electricity Options in 2025

As climate concerns grow, more Australians are looking for ways to reduce their carbon footprint—and switching to a green energy plan is one of the simplest steps you can take. In 2025, there are more renewable electricity options than ever. Here’s what you need to know.

What Are Green Energy Plans?

Green energy plans source some or all of your electricity from renewable sources like wind, solar, and hydro. There are several types:

GreenPower

GreenPower is a government-accredited program that guarantees your electricity is matched with certified renewable energy generation.

• 100% GreenPower: All your electricity is matched with renewable generation.
• Partial GreenPower: A percentage (e.g., 10%, 25%, 50%) is matched with renewables.
• Accredited and audited: GreenPower is independently verified, so you know your money is supporting real renewable projects.

Carbon-Neutral Plans

Some retailers offer carbon-neutral plans where your electricity usage is offset by carbon credits (e.g., tree planting or emissions reduction projects). This doesn’t necessarily mean your electricity comes from renewables—just that the emissions are offset.

Retailer Renewable Claims

Some retailers claim to source all their electricity from renewables without GreenPower accreditation. These claims can be harder to verify—look for transparency about energy sources.

How Much Do Green Plans Cost?

Green energy plans typically cost slightly more than standard plans:

• GreenPower premium: Expect to pay 5–10% more for 100% GreenPower. For an average household, that’s $100–$200 extra per year.
• Carbon-neutral plans: Often priced similarly to standard plans, as offsets are cheaper than renewable generation.
• Competitive green plans: Some retailers offer competitive green plans with minimal or no premium, especially for customers who also have solar.

The gap between green and standard plans has narrowed significantly as renewable energy costs have fallen.

2025 Green Energy Trends

The green energy market is evolving rapidly:

• More choice: Nearly every major retailer now offers a GreenPower option, and several smaller retailers specialise exclusively in renewable energy.

• Corporate renewable PPAs: Large businesses are signing power purchase agreements (PPAs) with wind and solar farms. Some retailers now offer similar products to households.

• Community energy: Community solar and battery projects let you invest in local renewable generation and receive credits on your bill.

• Green gas: Some retailers offer carbon-neutral gas or biogas options, though these are less common than green electricity.

• Bundled solar and green plans: If you have rooftop solar, some retailers offer plans that combine a competitive feed-in tariff with GreenPower for any grid electricity you use.

Is Green Energy Really Green?

The short answer: it depends on the plan.

• GreenPower: Yes. GreenPower is independently accredited and audited. Your money directly supports new renewable generation.
• Carbon offsets: The effectiveness of offsets varies. Some offset projects are more credible than others. Look for Gold Standard or similar certifications.
• Retailer claims: Without GreenPower accreditation, claims can be murky. Ask retailers for details about their energy sources.

If genuine renewable energy is important to you, GreenPower is the most reliable option.

How to Choose a Green Plan

When comparing green energy plans in 2025:

1. Check the percentage: Is it 100% GreenPower, partial GreenPower, or carbon-neutral?
2. Compare total costs: Don’t just look at the green premium—compare the total estimated annual cost with other plans.
3. Look for accreditation: GreenPower accreditation ensures your plan is independently verified.
4. Consider your values: If you want to directly support new renewable projects, GreenPower is the best choice. If you’re happy with offsets, carbon-neutral plans are cheaper.
5. Check for bundling: If you have solar, look for plans that combine green energy with a good feed-in tariff.

Real-World Example

The Chen family in Melbourne wanted to reduce their carbon footprint. In 2025, they switched to a 100% GreenPower plan with a mid-tier retailer. Their annual electricity cost increased by $150 compared to a standard plan—about $3 per week. For the Chens, knowing their electricity was matched with wind and solar generation was worth the extra cost.

The Bottom Line

In 2025, going green with your electricity is easier and more affordable than ever. Whether you choose GreenPower, carbon-neutral, or a retailer’s own renewable plan, you can reduce your household’s environmental impact with a simple switch. Compare plans, check the credentials, and power your home with a cleaner conscience.