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.
What does it mean to be a sustainable electricity company?
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:
- Providing clean, renewable energy (35%)
- Ending coal use by 2030 (20%)
- Halting fossil fuel expansion (20%)
- Support for new renewable energy (15%)
- Transparency in marketing (5%)
- Pollution and environmental harm (5%)
- Community support bonus (10%)
What makes top-ranking energy providers the most sustainable
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
| Rank | Score | Energy Provider | Reason for ranking |
| 1 | 10/10 | Diamond Energy |
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| 2 | 8.6/10 | Momentum Energy |
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| 3 | 8.09/10 | Energy Locals |
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| 4 | 8.09/10 | Aurora Energy |
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| 5 | 7.88/10 | Indigo Power |
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Source: Greenpeace Green Electricity Guide, 2022.
How to make the switch to a sustainable energy provider
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.
- Review your current plan, including charges and features, against the market to determine your best new plan to switch to. You may find that you pay more for a sustainable provider than a bigger retailer, so ensure you can afford a higher utility bill in your household budget.
- Check your contract terms to see if you are on a fixed term, and whether you may face a fee for cancelling. If so, it could be worth waiting until your contract term is nearing completion to begin the switch, to avoid any pesky costs.
- Reach out to the new provider and begin the application process for your new electricity plan.
- Your retailer will make the switch for you, speaking to your current provider on your behalf and assisting in this handover. Your energy should not be disrupted or disconnected in this process.
- If you change your mind, remember your 10-day cooling-off period. This is provided by law, and allows you to cancel the contract within this period without penalty, if needs be.
