As an increasing number of retailers launch green tariffs and green energy is more prominently offered, Australian consumers are rapidly signing up to green power. The country now has amongst the highest penetration of residential customers buying accredited green energy in the world, and the share of households taking a green product is expected to reach double figures by 2009.

A new report shows that take-up is being driven by desire to help the environment and a limited price differential with existing tariffs, with green power just one of an increasingly wide range of environmental measures being adopted by households.

A study by the University of Melbourne and CSIRO have shown that people want the government to support renewable energy so that the price of green power can drop for householders. Nearly 8% of all Australian households pay more for their electricity to ensure it is environmentally friendly.

According to the GreenPower office, enthusiasm for renewable energy has prevented nearly 4.2 million tonnes of greenhouse gas emissions entering the atmosphere every year.

Residential green power customers doubled in the 12 months to June 2007 to pass half a million by June 2007. The number is expected to reach one million by mid-2009, with 11.5% of households expected to be purchasing accredited green power.

Resistance to green tariffs is primarily due to additional cost and lack of understanding, though consumer awareness campaigns and new regulations helped significantly to improve knowledge of green power during 2007.