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Green Electricity Tariffs

Green electricity comes in various forms, not just the one! There are several types of green energy tariff available for potential customers to choose from. The key types of these are known as Green Supply, Green Fund and finally Carbon Offset. These are looked at in more detail below:

Green Supply

Here the electricity supplier ensures that a set amount of 'green' electricity is generated per unit of electricity you use. It is worth noting that supply companies have a obligation on renewables set by the Government to supply a minimum level of renewable electricity, and this is around the 7% mark at the moment.

Green Fund

A Green Fund is the second type of major green energy tariff, and with this, the company will invest a certain percentage of what you pay in your bill on their projects to create new renewable energy sources, for instance building wind turbines as an example.

Carbon Offset

This is the third and final major type of tariff. Here the electricity supplier buys carbon emissions on your behalf and then offsets either a percentage of or all of the carbon emissions that result from the process of generating the energy that you use.

The source of the carbon offset could be one of many and varies from supplier to supplier, so it would be worth checking before purchasing a particular product. For instance it might be from planting trees, or from renewable energy projects.

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