Green energy deals are now as competitively priced as their non-green counterparts, according to price comparison site uSwitch.
Research from the firm found that the number of environmentally-friendly tariffs available on the market have increased by a third over the past 12 months.
As many as half of the top 10 cheapest deals that are currently available are green energy deals. There are 57 different deals to choose from – up from 36 last year, uSwitch found.
Households can save £273 on average by opting for a green energy deal, compared to a typical standard variable tariff (SVT). This saving has increased by £40 since last year.
Two in five households would also now consider a green tariff, according to uSwitch. However, the misconception that these deals are more expensive than brown energy still represents a challenge.
Shona Eyre, an energy expert at uSwitch, says: “Green energy tariffs now feature heavily in the best-buy tables, planet-friendly deals are no longer an expensive luxury for those who can afford to pay for their principles.”
Two of the ‘Big Six’ energy providers now offer a green tariff – E.ON and Npower. Both deals are cheaper than their equivalent standard tariffs.
Energy price cap poses challenge
However, some commentators fear that the introduction of the energy price cap has the potential to make the energy market less competitive. This will see regulator Ofgem set a cap for standard variable and default energy tariffs, which are typically the most expensive in the market. Critics fear that the introduction of the cap will discourage suppliers from competing on price, which could undermine the growth of green energy customers in the UK.
Ms Eyre adds: “Huge investment in sustainable gas and electricity has led to almost a third of the UK’s electricity coming from renewable sources. As more suppliers differentiate themselves by focusing on the environment, green tariffs are becoming much more widespread and cheaper.
“Customers still languishing on the most expensive standard variable tariffs from the big six could save over £260 by switching to a renewable energy deal. This is why it’s so important that policy changes like the energy price cap don’t undermine this expansion by deterring consumers from switching and suppliers from innovating.”