Renewable energy explained

Renewable energy is rapidly reshaping the UK's power landscape, offering households a path to greater control over their costs and energy independence. This shift moves beyond the old narrative of scarcity, promising a future where energy is abundant and accessible.

Understanding renewable energy can help you take control of your household costs. Fuse Energy offers clear pricing and real-time usage data to empower you on your energy journey. Click here to switch to Fuse Energy today.

What is renewable energy?

Renewable energy comes from natural sources that replenish themselves, unlike fossil fuels which are finite and take millions of years to form. These sources are sustainable and typically produce minimal greenhouse gas emissions, making them crucial in the fight against climate change.

Defining green energy

The terms "green energy" and "renewable energy" are often used interchangeably. Green energy specifically refers to power generated from natural sources that do not harm the environment, while "renewable" highlights that these sources are constantly replenished. This includes everything from sunlight and wind to the heat within the Earth itself.

Key types of renewable energy sources

The UK harnesses several key types of renewable energy:

• Wind power: Wind turbines convert the kinetic energy of moving air into electricity. This is a major contributor to the UK's renewable mix, both onshore and offshore.
• Solar power: Photovoltaic (PV) panels capture sunlight and convert it into electricity. Solar energy can be used for large-scale farms or smaller domestic installations.
• Hydro energy: This uses the power of flowing water, often from rivers or dams, to generate electricity through turbines. It is a long-standing form of renewable energy.
• Bioenergy: Derived from organic matter like plants, agricultural waste, or even sewage, bioenergy can be converted into gas, electricity, or transport fuel.
• Geothermal energy: This taps into the heat originating from beneath the Earth's surface to generate electricity or provide direct heating.

The UK's renewable energy landscape

The UK has made significant strides in increasing its renewable energy generation, with ambitious targets set for the future.

Growth and progress in the UK

Renewable sources generated approximately 47% of the UK's electricity in 2023, a record high. This marks a substantial increase from just 7% in 2010. In 2024, renewable electricity generation reached 143.7 TWh, accounting for 50.4% of total electricity generation.

Major renewable energy sources in Britain

Wind power is the backbone of the UK's renewable electricity, contributing around 29% of total electricity generation in 2023. The UK is a global leader in offshore wind capacity.

The average UK home uses around 2,700 kWh of electricity per year1. UK onshore wind farms typically operate at a 27% capacity factor, while offshore wind farms average around 41%. Solar power also plays a growing role, with installed capacity reaching around 18 GW by the end of 2024. Many homeowners are exploring the advantages of solar energy to reduce their reliance on the grid.

Government targets and policies

The UK has a legally binding commitment to achieve Net Zero greenhouse gas emissions by 2050. This ambitious target requires systemic changes across all sectors, with renewable energy playing a central role. The government aims for at least 95% clean power by 2030, primarily through expanding wind and solar generation. Ofgem, the energy regulator, plays a crucial role in ensuring a secure, fair, and sustainable energy supply for consumers.

Renewable energy and your household costs

Transitioning to renewable energy can have a tangible impact on household finances, moving away from the anxiety of fluctuating fossil fuel prices.

How renewables can reduce energy bills

While some may expect renewable energy to increase short-term costs, there's a growing expectation that it will lead to decreased prices in the longer term. Newer renewable projects are already helping to lower costs compared to what consumers would otherwise pay, though the current market structure often links electricity prices to gas, even when renewables dominate supply. By reducing reliance on imported fossil fuels, renewable energy enhances energy independence and can shield households from global price shocks. Understanding different pricing models, such as agile pricing, can further help manage costs.

The link between abundance and affordability

The shift to renewable energy offers the potential for an abundant energy future, challenging the traditional "use less" narrative. When energy is generated from inexhaustible sources like wind and sun, the long-term cost of production can decrease, leading to more affordable energy for everyone. This abundance can translate into greater financial freedom for households, allowing for more predictable bills and less anxiety about energy consumption.

Embracing renewable energy at home

Households can actively participate in the renewable energy transition, gaining more control over their energy usage and costs.

Solar panels and home batteries

Installing solar panels allows you to generate your own electricity, reducing reliance on the grid and potentially lowering bills. Pairing solar panels with home battery storage further maximises these benefits. Batteries store excess solar energy generated during the day for use in the evenings or at night, increasing self-consumption and reducing the amount of electricity purchased from a supplier. They can also be charged during off-peak hours on cheaper tariffs, then used when electricity prices are higher.

Choosing a green energy supplier

Many energy suppliers now offer green tariffs, but it is important to understand what "green" truly means. Some suppliers invest directly in new renewable generation, while others purchase renewable energy certificates to match customer usage. Ofgem regulates all energy suppliers in the UK, ensuring they meet certain standards. Checking a supplier's fuel mix disclosure, which they are legally required to publish, can help you understand their commitment to renewable sources.

The future of energy: abundance and control

The journey towards a fully renewable energy system is not just about environmental benefits; it's about building a future where energy is a source of empowerment, not anxiety.

Building a resilient energy system

The UK is actively building the infrastructure for an abundant, clean energy future. Fuse Energy, for example, is investing in operational solar and wind projects like Netley North (a 5.2 MW solar site in Hampshire), Bullous Park (a 12 MW solar site in Devon), and Balnamoon (a 0.8 MW onshore wind site in Moray). These projects feed renewable electricity into the grid, contributing to a more resilient and sustainable energy supply. This approach is about rebuilding the energy system from the ground up, ensuring a stable and affordable supply for all.

Your power to play with energy

An abundant energy future means having "power to play with" - where energy is no longer a constraint but a given. This vision empowers households to take control, managing their energy usage transparently and making informed choices. With advancements in technology and a commitment to renewable sources, energy can become a tool for greater financial freedom and peace of mind, rather than a source of daily worry.

Taking control of your energy usage and understanding your bills is easier than ever. Fuse Energy provides clear pricing, real-time usage data through our app, and 24/7 human customer support to help you manage your home's energy. We believe in an abundant energy future, and we're building it today.

Ready to make a power play for your home's energy? Click here to switch to Fuse Energy today and join us in building a future with power to play with. You can also learn more about our mission here.

References

1. UK Government. Subnational electricity and gas consumption summary report 2021