Renewable business energy tariffs: are they worth it for UK companies?
What 'renewable business energy' actually means
In the UK, a renewable electricity tariff is backed by REGOs — Renewable Energy Guarantees of Origin. For every MWh you consume, your supplier retires a matching REGO certificate representing a MWh of renewable generation. The electrons themselves are indistinguishable from any other on the grid; the accounting is what matters.
Are they more expensive?
Not meaningfully. In 2026, many REGO-backed business electricity tariffs are within 1-3% of standard tariffs, and some are actually cheaper as suppliers use them to attract sustainability-focused customers. Gas is harder — 'green gas' usually relies on carbon offsetting or biomethane blending, and can carry a 3-5% premium.
The credibility question
Not all green tariffs are equal. A tariff backed by REGOs from new renewable projects the supplier has invested in is a very different product from one that simply buys unbundled REGOs on the secondary market. For serious sustainability commitments, ask suppliers where their REGOs come from before signing.
When they're the right choice
Renewable tariffs make the most sense when: your customers, employees or investors expect visible sustainability commitments; you have a Scope 2 emissions reduction target; or your brand story includes environmental values. If none of those apply and the price is materially higher, a standard tariff with the savings redirected to on-site efficiency work may deliver more real emissions reduction.
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