In the business environment, the choice of electricity and gas contracts with a renewable energy source goes beyond the simple “green” label.

This term is often used to promise a more sustainable and environmentally friendly source of energy. But, What does it really mean to have a “more or less green” contract, and how does it affect the real electricity that powers our businesses?

Let's look at the complexities of green energy contracts. We're also going to debunk some common misconceptions and explore the paradoxes that accompany them.

What is a green energy contract?

When we talk about a “more or less green” contract, we refer to the destination of what we pay on our electricity bills to different types of energy production. A higher percentage in a green contract means that more money goes to renewable energy sources, while a lower percentage means a greater contribution to production based on fossil fuels.

Electricity doesn't have a colour

Contrary to popular belief, the electricity that reaches our real estate assets does not have a specific “colour”. Whether you have a green contract or not, the electricity that flows to your business, premises, office or home is the same as that of other people. The difference lies in where your money goes and how it shapes the future of energy production.

Financing Corporate Sustainability

Even with a 100% green contract, The electricity that powers your business, premises or tourist housing is still a mix of renewable and fossil fuel sources. If, hypothetically, all Spanish citizens switched to green contracts overnight, the immediate impact on the electricity that arrives would not be completely green. It takes time for the additional funds from these contracts to boost green production and balance the ratio in favour of renewable energy.

However, for corporations, having a “more or less green” contract guarantees support for renewable energy sources, funding initiatives that promote the development of more sustainable energy practices and green production. The real power lies in collective support for renewable energy, and choosing green contracts is a step in the right direction.

It's crucial to debunk the myth that a green contract changes the immediate “colour” of business electricity. Understanding that it is a gradual process, driven by financial contributions, empowers consumers to make informed decisions about their energy options.

4 keys to consider when hiring green energy

Here are the most important factors that Polaroo recommends considering when evaluating green energy suppliers and contracts:

• Real sustainability: verifies that the supplier complies with recognized standards, environmental certifications and regulations in the energy sector. Analysing the source of the energy and the supplier's investment in renewable projects are necessary steps to ensure that the choice effectively contributes to the company's sustainability objectives.
• Efficient cost management: When choosing green energy contracts, corporations must evaluate not only environmental impact, but also long-term economic viability.
  Sometimes, we identify the existence of additional costs due to this green “label”. We know which in principle is more expensive, but there are suppliers that overbill green energy. Therefore, we recommend consulting the supplier if there are additional cost overruns due to this label. Contracts that combine sustainability with a reasonable cost structure are essential.
• Contractual flexibility: adaptability to the changing needs of the company is crucial. Green energy contracts must offer flexibility in terms of duration and capacity, allowing adjustments as demand evolves and business expansion.

• Experience and knowledge of the market: Having a supplier with experience and solid knowledge of the energy market is invaluable. An understanding of trends, regulations and opportunities in the sector ensures that the company is backed by a strategic partner capable of guiding it towards informed decisions and long-term benefits.

If you have doubts when choosing the green energy supplier for your business, we recommend that you have a specialized electricity manager. An expert in the field can certainly make things easier for you. With services such as Polaroo, for example, you not only ensure the optimization of green energy contracts, but you can also have strategic advice to reduce costs and maximize energy efficiency in your real estate assets.

If you already have a green energy contract...

Look at the graphic note that will appear on the invoice. Observe the information related to the origin of the electricity of the contract, the notes of CO2 emissions and the activity related to radioactive waste to understand if the energy you have contracted is really “green”.

Here are two examples:

In conclusion, a “more or less green” contract does not mean the immediate transformation of electricity, but rather financial support for a sustainable energy future. Understanding this distinction empowers consumers to make conscious decisions regarding the environment, contributing to a greener tomorrow. As we navigate the complexities of energy contracts, let's keep our eyes on the future and work together for a sustainable energy landscape.

‍ Your Polaroo manager helps you

From Polaroo we will always encourage you to be greener and so is your business. If you have questions about your bill and the source of your energy, don't hesitate to contact your manager, ask us!

If you want to know more about Polaroo and about the advantages of hiring our service, you can consult the webpage.