“The Great Green Robbery?” LGC Prices Plunge, But Your GreenPower Bill Is Still Sky-High
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If you’ve been paying a premium for GreenPower in Australia, you might be a victim of what experts are calling a "price-gouging rip-off." While the cost of the renewable certificates that power these schemes has fallen off a cliff, most energy retailers haven’t passed those savings on to you.
As of January 2026, the gap between what retailers pay and what they charge has reached a boiling point. Here is the breakdown of why your "green" bill is still so expensive and how you can actually take control.
1. The Certificate Crash: 0.7c vs. 6c
The backbone of GreenPower is the Large-scale Generation Certificate (LGC). To claim your power is renewable, retailers buy these certificates.
The Reality Check: In early 2026, LGC spot prices plummeted to roughly $6–$7/MWh (about 0.7 cents/kWh).
The Markup: Despite this, many Australian retailers are still charging customers 4 to 6 cents/kWh for 100% GreenPower.
The Math: That is a staggering markup of up to 840%. While admin and auditing costs exist, they don't justify a nearly 10x price hike over the raw material cost.
2. Why Are Prices Dropping So Fast?
The Australian renewable energy market is currently flooded. Thanks to the Capacity Investment Scheme (CIS) and a massive surge in utility-scale solar and wind projects, there is now a surplus of LGCs.
Grid Transformation: Renewables now regularly supply over 45-50% of the National Electricity Market (NEM).
The "Double Dip": Critics argue that since the grid is already becoming green by default, charging a high voluntary premium for "extra" green energy is becoming harder to justify.
3. The "Hiding Behind Hedging" Excuse
When asked why prices aren't dropping, many retailers claim they "pre-purchased" certificates at higher prices (back when they were $30–$50).
Industry Insight: While some hedging is legitimate, the lack of transparency means consumers have no way of knowing if their retailer is actually passing on savings or simply pocketing the difference from the current $7 spot price.
4. Australia’s 2026 Energy Outlook: A Turning Point
With the government’s 82% renewable target by 2030 looming, the traditional GreenPower model is under fire. Current news suggests that "voluntary" demand is drying up because savvy businesses are switching to Long-term Power Purchase Agreements (PPAs) or onsite generation rather than paying retail premiums.
Stop Donating to Retailers—Start Investing in Your Own Power
If you want to be truly green and save money, paying a middleman for a paper certificate isn't the only way. As the market shifts, independent energy consulting is becoming the secret weapon for Australian households and businesses.
How EServices4U Maximises Your ROI:
Energy Bill Audits: We identify if you’re being overcharged and move you to better-priced tariffs.
Solar & Battery Right-Sizing: Don’t just "get solar"—get the exact system size that wipes out your peak-time costs.
Energy Procurement Strategy: For businesses, we navigate the complex wholesale and LGC markets to lock in genuine value.
Independent Advice: We don’t sell hardware; we sell expertise. Our goal is your lowest possible bill.
Ready to stop the price-gouging?
Don't wait for your retailer to "reset" their prices. Take charge of your energy strategy now.
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