Sustainability is a huge priority for many Australians, and this doesn’t just stop at ditching plastic straws or petrol cars. If you’re looking to make the switch to an eco-friendly energy provider, let’s explore which electricity companies in Australia are the most sustainable.
Environmentalist organisation, Greenpeace, released a comprehensive ranking of the most sustainable electricity providers through its Green Electricity Guide. From this research, Diamond Energy ranked firstin Australia as the most sustainable electricity provider, followed by Momentum Energy, Energy Locals, Aurora Energy, and Indigo Power.
In a general sense, a sustainable electricity company should be one that limits its adverse environmental impacts through supporting and providing renewable energy, such as solar power, and not investing in pollutant usage, like coal or gas.
While each person may have their own definition of what is or isn’t sustainable, Greenpeace, and the Total Environment Centre (TEC), have developed the Green Electricity Guide to create a comprehensive grading system of what is, and isn’t, a green energy provider.
This guide includes several key ranking factors, in which the higher the total percentage score in each category, the greener the retailer. Which means, if you’re looking to find a sustainable electricity provider, it’s worth comparing how it ranks for these factors:
According to the Green Electricity Guide, the top-ranking energy providers in Australia achieved the highest scores in the aforementioned sustainable factors. Diamond energy came out on top by achieving full marks in each category, seeing it score a 10 out of 10. Whereas other providers, while still strong contenders for sustainability, scored between 7.88 – 8.6.
Top green energy providers in Australia
Source: Greenpeace Green Electricity Guide, 2022.
Now you know which providers are considered the most ‘green’, or sustainable, it could be worth considering making the switch to your preferred company. Luckily, making the switch is a relatively straightforward process compared to, say, refinancing a home loan.
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This article was reviewed by Personal Finance Editor Peter Terlato before it was published as part of RateCity's Fact Check process.
Alex Ritchie is a Personal Finance Writer and Editor at RateCity, and has been writing about Australian finance for over five years. Her expertise and passion covers loans, credit, superannuation, and closing the gender pay gap, and she aims to help young Aussies to overcome their financial apathy. Alongside RateCity, Alex has been published in numerous publications, including Australia's Money Magazine, Business Insider, Lifehacker Australia, and in health via NPS MedicineWise.