What is carbon offset energy?

Energy use is a big contributor to a household's carbon footprint. This is because most of the energy we use comes from burning fossil fuels.

The best way to reduce the emissions associated with your energy use is to get solar and use 100% renewable energy from your panels. However, if that’s not possible, choosing an energy plan that carbon offsets your electricity and gas usage can be one of the lowest cost ways to minimise your home’s carbon footprint.

What is carbon offset energy?

Carbon offsetting is a way to balance out the greenhouse gas emissions associated with using energy.

To do this, many power companies, like Arcline by RACV, offer electricity and gas plans that offset customers' energy usage using carbon credits.

What are carbon credits?

Carbon credits are credits produced when an emissions-saving activity is undertaken, such as renewable energy generation or planting trees. These credits can then be bought by organisations to offset the emissions their activities release, for example by energy providers to offset the electricity and gas used by their customers.

Why carbon offset your energy usage?

Many Victorians would like to use renewable energy at home but, in practice, it’s not always easy to do.

This is because our electricity grid is made up of energy from a mix of sources – some renewable, like solar and wind, and some fossil fuels, like coal and gas. As it’s transported around the country, it's all mixed in together, so it's not possible to separate the renewable electricity from the fossil fuels.

As a result, unless you use your own solar generation, there’s no way to ensure the electricity you’re using comes from 100% renewable sources.

Benefits of carbon offset energy

Opting for a carbon offset energy plan can be one of the lowest cost ways to reduce the environmental impact of your energy use, as many energy providers offer carbon offsets as a standard inclusion in their plans.

The drawback, though, is that you’re not actually using renewable energy or putting any extra renewables into the grid. But, despite the limitations, for many households it can be a first step on the road to a more sustainable future.

Go solar and use renewable energy

The only way to ensure you’re actually using renewable electricity at home is to generate it yourself.

Installing solar panels and a battery allows you to generate free, clean solar power and gives you the flexibility to store any excess in your battery for use day or night.

Plus, if you have an electric vehicle that you charge using your solar, you can significantly reduce your car emissions too.

Switch to carbon offset energy usage

Arcline by RACV offers electricity and gas plans that carbon offset 100% of customers’ energy usage.

With competitive rates and Victorian-based service, you get simple and affordable energy backed by RACV.