Green tariffs for UK businesses — what actually counts as renewable
Not all green tariffs are equal. Here's the difference between REGO-backed supply, PPA-backed products and additionality — and what to claim in your ESG reporting.
REGO-backed supply
The most common form of green business tariff is REGO-backed — the supplier retires Renewable Energy Guarantee of Origin certificates to match your annual consumption. It's the standard basis for Scope 2 market-based reporting under the GHG Protocol and is accepted by most ESG frameworks.
PPA-backed and matched-generation products
Some suppliers now offer products backed by named Power Purchase Agreements — you're paying for the output of a specific windfarm or solar site. These carry a stronger provenance story and typically a modest premium over standard REGO-backed tariffs.
Additionality — the harder claim
Additionality means your purchase caused new renewable capacity to exist. REGO retirement on its own doesn't demonstrate additionality; a corporate PPA that underwrites new generation does. If your ESG audience will interrogate the claim, the additionality question is worth taking seriously.
What to put on your website
Match the wording to the product. "100% renewable electricity backed by REGO certificates" is accurate for a REGO-backed tariff. "Renewable electricity from a named UK windfarm" fits a matched-generation PPA. Avoid claims like "powered directly by renewable sources" or "carbon-neutral electricity" unless the underlying product genuinely supports them.
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