Renewable business energy tariffs: what UK businesses should know

Three tiers of 'green' business energy

Not all green business energy tariffs are equal. There are broadly three tiers:

• REGO-backed — supplier buys Renewable Energy Guarantees of Origin certificates to match your usage. Widely available, modest price premium.
• REGO + green fuel mix — supplier proves the underlying electricity mix is generated from renewables.
• Additional / PPA — direct Power Purchase Agreement with a specific renewable generator; genuinely adds new renewable capacity to the grid.

What REGO actually means

A REGO certificate proves 1 MWh of electricity was generated from a renewable source somewhere on the grid. REGO-backed tariffs are the standard green option for UK SMEs — legitimate but not the same as buying from a new renewable project.

When to consider a PPA

For larger users with strong Net Zero commitments — think manufacturers, tech companies, universities — a Corporate PPA with a wind or solar developer can be genuinely additional. PPAs suit users above ~1 GWh/year of electricity and lock rates for 10-15 years.

Watch for 'greenwashing'

Some 'green' tariffs are effectively a REGO wrapper on standard grid mix with a marketing premium. Ask your supplier or broker for a fuel-mix disclosure — Ofgem-regulated suppliers publish these annually.