Around half of consumers plan to opt for renewable energy when they next change their energy tariff, with a similar appetite expected among businesses, according to new research.
The research, from investment manager Alpha Real Capital and energy market consultants Cornwall Insight, also found that nearly two fifths of consumers already claim to have a renewable energy tariff for their home.
When asked why they would choose renewable a renewable energy tariff, 80 per cent cited environmental reasons, but nearly half (46 per cent) also said they could get a better deal.
Even if a renewable energy deal costed more than standard tariff, over a quarter (26 per cent) of respondents said they were prepared to pay a premium for it.
Commenting on the finding, Ben Hall, group consulting partner at Cornwall Insight, said: “With climate change now at the forefront of consumers’ minds, renewable energy tariffs are becoming an increasingly popular choice for customers.
"Whilst this research mainly focused on residential consumers, it’s also clear from our experience the net zero agenda is increasing demand for renewable energy from corporates and large businesses too. This growing demand will undoubtedly send an important signal to the investment community, boosting the build-out of renewable technologies that will help the UK meet its 2050 net zero goals.”
Signal to investors
The researchers believe the growing appetite from consumers and businesses will lead to increased investment in renewable power generation. According to Alpha Real Capital, over the next five years more than two thirds (68 per cent) of UK pension fund investors expect allocations to renewable energy to increase.
Posted under General Interest, Carbon Reduction and Environmental Technologies and Renewable Energy on 27 January 2021