Renewable Energy Contracts for UK Businesses
Suppliers offer “green” power and you’re unsure what actually changes on your bill. We cover what to ask, how levies can still apply, and how to compare total cost without treating marketing slogans as savings.
Next step: If you use under about 50,000 kWh a year, you can get a quote in under 90 secs online — fast, no obligation. Bigger supply, half-hourly metering, or prefer chat? Use the contact page.
Understanding Green Tariffs
“Green” tariffs usually mean your supplier matches your usage with certificates (REGOs) rather than piping named electrons to your door. That can still matter for reporting, but compare total cost against ordinary deals—see CCL, bill breakdowns and fixed vs variable.
REGO certificates: Government-backed proof that electricity was generated from renewable sources. Suppliers buy REGOs equivalent to customer usage—does not guarantee physical delivery of green electrons but funds renewable generation.
Cost Premium Analysis
Green products are sometimes a few percent above the cheapest standard deal, but they can also overlap depending on the week—and CCL treatment differs by product. Treat any “typical premium” band as marketing chatter until you have two written quotes.
Price comparison: Standard business electricity: 18-25p/kWh. Green tariff: 19-27p/kWh. Exact premium depends on contract length, consumption volume and market conditions.
Carbon Reduction Verification
Businesses using green tariffs can claim Scope 2 emissions reduction (electricity consumption). Critical for ESG reporting, carbon neutrality targets and sustainable procurement commitments.
Documentation requirements: Annual REGO certificate statement from supplier. Specifies renewable source mix (e.g., 60% wind, 30% solar, 10% hydro). Required for carbon accounting and sustainability reporting.
Related Guides
Climate Change Levy
Read guide →Fixed vs variable
Read guide →Understanding bills
Read guide →Your next step: When you are ready to compare business tariffs, get a business energy quote online (typically under a minute, no obligation). Larger supply, half-hourly metering, or you prefer messaging? See the contact page.