{"id":131,"date":"2021-04-29T15:44:00","date_gmt":"2021-04-29T14:44:00","guid":{"rendered":"https:\/\/www.goodenergy.co.uk\/businesses\/?p=131"},"modified":"2022-10-24T15:47:43","modified_gmt":"2022-10-24T14:47:43","slug":"questions-about-green-energy-for-brokers","status":"publish","type":"post","link":"https:\/\/www.goodenergy.co.uk\/business\/insights\/questions-about-green-energy-for-brokers\/","title":{"rendered":"Five questions brokers should ask about a green energy tariff"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Being an energy broker has always required a complex mix of skills, and in 2021 there are more challenges than ever. As well as being an expert on contract negotiation and the legislative landscape, you also have to take into account the changing priorities of the business world. Many companies are setting themselves targets to significantly reduce their carbon emissions, or even reach net zero emissions, over the next decade or so. This means that you have to guide them through the greenwash to the tariffs which will actually help them achieve their goal \u2013 while still finding the best price and contract type.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">These five questions to ask energy suppliers will help you identify which \u201cgreen\u201d tariffs are truly in line with an ambitious climate target.<\/p>\n\n\n\n<h2 id=\"1-how-much-of-your-electricity-is-actually-from-renewable-sources\" class=\"wp-block-heading\">1. \u201cHow much of your electricity is actually from renewable sources?\u201d<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">&nbsp;It\u2019s perfectly legal for an energy supplier to buy electricity on the open market from any source whatsoever, then buy green certificates from other suppliers or brokers in order to call their electricity \u201cgreen\u201d. The secondary market in Renewable Energy Guarantees Origin (REGO) certificates means that suppliers or brokers with a surplus of REGOs can sell them to suppliers who haven\u2019t so much as spoken to a renewable generator, allowing the latter to market their energy as \u201crenewable\u201d even when it\u2019s from dirty sources such as coal or gas<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This means that you can\u2019t accept a \u201cgreen\u201d or \u201c100% renewable\u201d tariff at face value; you have to ask about their sourcing. Suppliers don\u2019t have to disclose the source of their renewable energy in their fuel mix data either, so it could all be from REGOs.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Good Energy is very upfront about our sourcing: we match every unit of electricity used by customers with a unit sourced from renewable generators via direct power purchase agreements.<\/p>\n\n\n\n<h2 id=\"2-how-much-are-you-investing-in-new-green-generation\" class=\"wp-block-heading\">2. \u201cHow much are you investing in new green generation?\u201d<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">When you\u2019ve eliminated all the suppliers which use REGOs to achieve their \u201cgreen\u201d tariffs, you\u2019re left with those who actually invest in sources of renewable power. It\u2019s worth asking how much they\u2019re currently investing. How many generators are they currently supporting? How many generators do they own and run themselves? But remember to take the overall scale of the business into account; without this context, metrics such as \u201cnumber of generation projects\u201d are not a useful measure of a company\u2019s commitment to renewables.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Good Energy supports over 1,700 renewable generators around the UK by sourcing our energy from them and paying a fair price for it. We\u2019ve invested in new renewable projects and sold them back into community ownership. And, we currently own six solar farms and two wind farms.<\/p>\n\n\n\n<h2 id=\"3-what-is-your-company-vision-for-the-future-of-renewables\" class=\"wp-block-heading\">3. What is your company vision for the future of renewables?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Everybody agrees that for the UK to meet its target of zero emissions by 2050 we will need tens of billions of pounds to be spent on new renewables projects, but there are differences of opinion on the best way to get there. Some suppliers believe that it is their role to build their own renewable assets. Good Energy believes that the future of renewables is people-owned rather than supplier-owned, distributed rather than centralised. We invest in community energy schemes to get them off the ground and support them long term by purchasing their electricity, but we don\u2019t seek to control them. Our&nbsp;<a href=\"https:\/\/www.goodenergy.co.uk\/our-energy\/our-approach-to-development\/\">vision<\/a>&nbsp;is of a democratic, locally based energy generation network.<\/p>\n\n\n\n<h2 id=\"4-how-local-is-your-energy\" class=\"wp-block-heading\">4. \u201cHow local is your energy?\u201d<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Although green energy can be generated anywhere, there are advantages to choosing locally generated energy. Supporting local generators allows a business to boost the local economy and position itself as part of the community through its energy choices. It\u2019s a simple way of having total transparency on where your energy comes from. And the more local generators we have, the less reliant we are on importing energy from elsewhere. Many businesses will feel that these advantages mean it\u2019s worth paying more for their tariff.<\/p>\n\n\n\n<h2 id=\"5-how-are-you-greening-your-gas\" class=\"wp-block-heading\">5. \u201cHow are you greening your gas?\u201d<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Green gas \u2013 that is, biomethane gas produced from decaying organic matter \u2013 can be described as carbon neutral because the material that is decomposing has absorbed as much CO2 from the atmosphere in its lifetime as it gives off when it rots. However, in the UK we only produce enough to meet less than 1% of demand: there just isn\u2019t enough to go round. So, most energy suppliers offer green gas with a mixture of biomethane and natural (fossil fuel-based) gas. They then then offset through carbon reduction schemes, so that the gas can be called carbon neutral.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The key question for you to ask as a broker is: what kind of offsetting are they doing? Some will be doing traditional offsetting projects such as tree-planting, but this does nothing to solve the problem that pushed them into offsetting in the first place: an undersupply of green gas. Good Energy is different because our offsetting is done&nbsp;<a href=\"https:\/\/www.goodenergy.co.uk\/our-energy\/carbon-neutral-gas\/\">through investment in green gas projects overseas<\/a>. It\u2019s all done in partnership with internationally recognised offsetting organisation Climate Care. Every unit of gas we sell is \u201cgreened\u201d through a mirror investment in the global supply of green gas, rather than through less relevant offsetting schemes.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em>For more information about our energy and what we\u2019re doing to power a cleaner, greener world, visit&nbsp;<\/em><a href=\"https:\/\/www.goodenergy.co.uk\/our-energy\/\"><em>https:\/\/www.goodenergy.co.uk\/our-energy\/<\/em><\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Being an energy broker has always required a complex mix of skills, and in 2021 there are more challenges than&hellip;<\/p>\n","protected":false},"author":12,"featured_media":132,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[13],"class_list":["post-131","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-energy"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Questions about green energy brokers should ask | Good Energy for Business<\/title>\n<meta name=\"description\" content=\"As an energy broker, more clients may be looking for green tariff options. 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