An investigation of Greenwashers and 100% Green by Energy Umpire – Australia’s independent energy comparison experts
You’ve seen the ads everywhere: “Switch to 100% green energy today!” But what if we told you that some greenwasher companies making these bold claims haven’t actually purchased the certificates to back them up? This isn’t just misleading marketing—it’s a serious problem undermining Australia’s renewable energy goals.
The Problem: Big Claims, No Certificates (Greenwashers)
Across Australia, energy providers are advertising “100% renewable energy” and “carbon neutral power” to attract environmentally conscious customers. However, our investigation at Energy Umpire has uncovered a troubling trend: some companies are making these claims without purchasing the Renewable Energy Certificates (RECs) needed to legitimately offer green power.
What This Means for You
When you sign up for “green energy”, you expect your electricity to come from renewable sources like wind and solar. But if your provider hasn’t bought the certificates to match their claims, you’re essentially paying premium prices for regular grid electricity—which in Australia still includes 60% coal and gas power.
Understanding Renewable Energy Certificates (RECs): The Proof You’re Paying For
What are RECs? Think of RECs as “proof of green energy” certificates. When a solar farm or wind farm generates 1 megawatt-hour of renewable electricity, they receive 1 REC certificate [1]. These certificates can then be sold to electricity providers.
Why RECs matter: In Australia’s electricity system, renewable energy gets mixed with fossil fuel power in the grid. RECs are the only way to legitimately claim that your electricity is “green”—they’re proof that somewhere in the system, additional renewable energy was generated to match your consumption.
The legal requirement: To make legitimate renewable energy claims, green energy providers must purchase and retire RECs equivalent to their customers’ electricity usage [2].
The Hidden Problem: When Energy Companies Generate Green Power But Don’t Allocate It
Here’s where the situation gets more complex and potentially deceptive. Most major Australian energy retailers like AGL and Origin actually do generate renewable energy through their own wind farms and solar projects. Some only invest in renewable generation. On the surface, this seems legitimate—they’re investing in clean energy infrastructure.
But here’s the critical issue: Just because a company generates green power doesn’t mean their customers are actually using it.
How the Allocation Trick Works
- The Generation: An energy company operates wind farms generating renewable energy.
- The Marketing: They advertise “100% renewable energy plans” to customers
- The Reality: They sell the renewable energy into the general grid market for profit
- The Deception: Customers on so called “100% green energy” still receive regular grid electricity (mixed coal, gas, and 40% renewables)
- The Missing Link: The greenwasher doesn’t purchase or retire RECs to allocate their renewable generation to specific customers
Real-World Example
Imagine an energy provider operates a wind farm generating 100 megawatt-hours of renewable energy daily. They could either:
Option A (Legitimate): Retire 100 RECs daily and allocate this renewable energy to their green plan customers.
Option B (Deceptive Greenwasher): Sell all the wind power and the RECs into the electricity market for maximum profit, while marketing “100% green energy” plans to customers without retiring any RECs to back up the claims.
Unfortunately, some energy companies choose Option B—maximizing profits while customers pay green premiums for regular grid electricity.
Why Greenwashers Mislead
This practice is especially deceptive because:
- Double Dipping: Companies profit from selling ‘renewable energy’ AND charging green premiums to customers.
- False Credentials: Having renewable assets doesn’t automatically make customer plans green.
- Consumer Confusion: Customers assume the company’s renewable generation automatically benefits them.
- No Environmental Benefit: Without proper REC allocation, customer payments don’t offset their actual electricity consumption.
Real-World Examples of Greenwashers
Case Study 1: A major energy company operates multiple wind farms generating substantial renewable energy. However, they sell this power and RECs on the wholesale market while offering “100% green energy” plans to customers without retiring RECs to allocate the renewable generation to those specific customers.
Case Study 2: An established energy company promotes their renewable asset portfolio in marketing materials, but customers on their “100% renewable” plans receive standard grid electricity because the company hasn’t purchased RECs to offset customer consumption.
Case Study 3: A provider with significant solar generation advertises “powered by our own renewable assets” but fails to retire certificates to ensure customer usage is actually matched with renewable generation.
Why This Matters: The Real Impact of Greenwashers
Financial Impact on Consumers
- Customers pay $200-500 extra annually for “green” plans without environmental benefit [7]
- Money that could support genuine renewable projects is diverted to misleading marketing
- Trust in legitimate green energy options is undermined
Environmental Consequences
- No additional renewable energy is created despite consumer payments
- Delayed climate action as fake green options reduce pressure for real change
- Market distortion where genuine renewable providers struggle to compete
Regulatory Concerns
The Australian Competition and Consumer Commission (ACCC) considers this misleading conduct under Australian Consumer Law. Companies making environmental claims must have reasonable grounds for those claims [3].
Red Flags: How to Spot Greenwashers Not Backing Up Their Claims
Warning Sign #1: Vague Sourcing Information
Watch for: General statements like “powered by renewable energy” without specifics Ask: “Can you show me the REC retirement certificates for my account?”
Warning Sign #2: “Powered by Our Renewable Assets” “100% renewable”
Watch for: Companies promoting their renewable generation without mentioning customer allocation The reality: Their renewable power might be sold separately while you get regular grid electricity Ask: “Do you retire RECs to allocate your renewable generation to my account specifically?”
Warning Sign #3: No GreenPower Accreditation
Watch for: Companies avoiding the official GreenPower program Why it matters: GreenPower requires strict verification of REC purchases and retirement [4]
How to Verify Your Provider’s Claims
Questions to Ask Your ‘Green’ Energy Provider
- “Can you provide REC retirement certificates for my account?”
- Legitimate providers should be able to show you specific certificates retired on your behalf
- “When do you purchase and retire RECs for new customers?”
- Look for immediate or monthly retirement, not annual or “when convenient”
- “Do you retire RECs to allocate your renewable generation to green plan customers?”
- This is the critical question that separates legitimate providers from those making empty claims
- “Can I see your Clean Energy Regulator registry entries?”
- All REC transactions are publicly recorded and verifiable
Does it sound hard to do? Let us do it for you.
Verification Resources
- Clean Energy Regulator REC Registry: Check if your provider actually purchases RECs [5]
- GreenPower Accredited Provider List: Verify official accreditation status [6]
- ACCC Enforcement Actions: Check if your provider has faced regulatory action for misleading claims
The Bigger Picture: Protecting Australia’s Clean Energy Future
Companies making false green energy claims without purchasing RECs aren’t just misleading individual customers—they’re undermining Australia’s entire renewable energy transition. When consumers lose trust in green energy marketing, it becomes harder for legitimate renewable providers to attract customers and fund new projects.
By demanding transparency and choosing verified green energy options, you’re not just protecting yourself from misleading marketing—you’re supporting Australia’s genuine transition to clean energy.
Final Word: Your Power to Drive Change
The solution is in your hands. Every time you choose a verified green energy provider over one making unsubstantiated claims, you’re:
- Supporting genuine renewable energy development
- Sending a market signal that transparency matters
- Helping to eliminate misleading environmental marketing
Don’t let companies profit from false green claims. Demand proof, choose verified providers, and use independent services like Energy Umpire to cut through the marketing spin.
Your energy choices matter—make sure they’re backed by real certificates, not just clever marketing.
About Energy Umpire: With Energy Umpire you get the best price for GreenPower, guaranteed. Energy Umpire compare every offer from every company and don’t accept commissions or payments or inducements from energy companies. Energy Umpire only work for you, and to cover the cost we charge a small fee. As prices of electricity and the extra cost of GreenPower change all the time, you get quarterly updates on the best priced supplier for you. Get the best GreenPower price now
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