Could your business benefit from green energy?

The cycle of summer heatwaves and autumn floods helps keep environmental issues at the front of most people's minds. As a business owner, you may have switched to LED lighting, draught-proofed your building, or even installed solar panels to make your business more energy efficient and, in turn, more environmentally friendly.

But even with those energy-efficiency measures in place, paying your business energy bills can still make up a large part of your outgoings. And that might put you off switching to a green energy tariff. After all, you pay a premium for green energy, right?

Not necessarily. Business energy suppliers now compete on price alongside green credentials, as more and more customers expect both.

This guide explains what a green tariff actually means, what it costs, and how to check the claims behind it.

In this guide to green business energy…

• Find out more about how green tariffs source electricity from renewable generators and are verified by REGO certificates.
• See how costs are increasingly competitive with standard tariffs, and are sometimes identical.
• Learn why a green tariff alone does not prove sustainability credentials without REGO evidence.
• Get more info on how going green can support your ESG reporting, brand perception, and customer trust.
• Return on investment depends on whether your sustainability goals are tied to customer or investor requirements.

What are green energy business tariffs?

A green business energy tariff is a supply contract matched to renewable electricity generation and backed by REGO certificates.

REGO stands for Renewable Energy Guarantee of Origin. It's the UK's official system for proving where electricity came from. 

If you're wondering why green energy needs a certificte, it's because electricity from renewables doesn't travel from a wind farm straight to your building. All electricity shares the same National Grid. What a green tariff does is guarantee that your supplier bought enough renewable output to match your usage. Having a REGO certificate to proves this.

You can find out more in our guide to renewable energy certificates and REGOs.

Suppliers generate or buy REGOs for every megawatt hour of renewable electricity they add to the grid. When you're on a green tariff, your supplier supplies certificates equal to your annual usage. This is the audit trail that separates a genuine green tariff from a marketing label.

Business gas can also carry a green label. This usually means biomethane. It's injected into the gas grid and matched to your usage through certificates, similar in principle to REGO for electricity.

How much UK energy is produced by renewable sources?

According to government data reported by RenewableUK in early 2026, renewable sources generated 52.5% of the UK's electricity in 2025. It was the second year running that renewables supplied more than half the country's power. 

That means even a standard, non-green tariff already carries a meaningful share of renewable generation. A green tariff adds a formal, certified guarantee on top of that.

Are green tariffs more expensive than standard tariffs?

The idea that green tariffs cost more than other tariffs can understandably put business owners off going green. But the cost depends on your supplier and contract length. But the gap is narrowing thanks to larger adoption and cheaper implementation of renewables.

Why are green energy costs coming down?

• Renewable generation capacity has grown, so supply is less scarce.
• More suppliers now offer green tariffs as standard, not as an add-on.
• Wholesale renewable costs have fallen as wind and solar capacity has expanded.

What still affects green energy prices?

• Your business size and annual usage (measured through your MPAN for electricity or MPRN for gas).
• Contract length and whether you fix your rate.
• Which supplier you choose. Independent suppliers often price green tariffs competitively against the larger, established names.

For more detailed information, check out How does the energy market affect the cost of your energy bills?

For many small businesses, a green tariff now sits close to standard pricing. Some suppliers charge the same rate either way. The best way to know your real number is to compare live quotes. 

When you get a quote with MoneySuperMarket, our partners at Bionic compare tariffs from a panel of suppliers. This includes options with green and low-carbon credentials. This makes it easier to see where the real cost gap sits for your business.

Are there any benefits of green tariffs beyond price?

Price is only part of the decision. For many businesses, the case for green energy rests on other factors.

Customer and client expectations

Buyers, especially large businesses or corporate clients, may ask suppliers about their energy sourcing. A green tariff can support tender responses and procurement questionnaires.

ESG reporting and Scope 2 emissions

If your business reports on sustainability, either voluntarily or because a larger client requires it, your electricity supply feeds directly into your Scope 2 emissions figure. Scope 2 covers emissions from the energy you buy.

A REGO-backed green tariff can reduce your reported Scope 2 emissions under standard carbon accounting methods. This matters more each year, as more mid-sized firms get pulled into supply chain reporting requirements set by larger customers.

Brand and staff perception

Customers and staff increasingly notice sustainability signals. A green tariff is one visible, verifiable step. That's only true if you can back it up with REGO evidence, not just a logo.

If your business generates its own energy

Some businesses install solar panels or other on-site micro generation. If you export surplus power back to the grid, you may qualify for Smart Export Guarantee (SEG) payments from your supplier. This is worth checking if you're weighing up on-site generation against a green tariff, or considering both.

What are the green energy supplier options?

The green business energy market includes large national suppliers and smaller independent providers. Independent suppliers often compete hard on both price and green credentials, so it's worth comparing beyond the big names.

Green gas for business

Green gas, usually biomethane, is available from a growing number of suppliers. It's produced from organic waste and injected into the existing gas grid, then matched to your usage through certificates.

Uptake is smaller than for green electricity, and it can carry a higher price. This matters most for businesses with high gas usage, such as hospitality or manufacturing firms. Ask suppliers directly what green gas options and pricing they offer.

How to verify your green tariff credentials

Being on a green tariff and proving it are not the same thing. Some tariffs are marketed as green with limited certification behind them. Before you sign, ask your supplier these questions:

• Which REGO certificates back this tariff, and can you show the evidence?
• Is the tariff 100% REGO-matched, or only partially?
• Do you generate renewable power directly, or buy certificates from third parties?
• Will you provide documentation I can use for ESG or tender reporting?

A supplier that can answer clearly, in writing, is a stronger long-term choice than one offering vague reassurance.

Is it worth paying a bit more for green energy?

Whether a green tariff pays off depends on why you're buying it.

• If your goal is cost alone: the return may be neutral. Many green tariffs now cost close to standard tariffs. You're not paying a large premium, but you're not necessarily saving money either.
• If your goal is winning or keeping contracts: the return can be significant. A client, tender process, or investor may require evidence of renewable energy use. In that case, a REGO-backed tariff can decide whether you qualify.
• If your goal is brand and customer trust: the return is harder to measure directly, but it compounds. Customers checking your sustainability claims will find a genuine, certified answer rather than an unverifiable one.
• If your goal is future-proofing: ESG reporting requirements are extending down the supply chain to smaller firms each year. Moving early, while it's a straightforward switch, may cost less admin time than a rushed change later.

The clearest way to judge whether an additional cost is worth it, compare current tariffs against your own business energy usage and goals. General figures won't tell you enough.

For example, a small retail business using 15,000 kWh a year might find a green tariff costs within a few pounds a month of a standard one. On its own, that's not a big saving either way. But say that business supplies a larger retailer that scores suppliers on sustainability. The same tariff could help protect a contract worth far more than the energy bill. The return sits in the relationship, not the unit price.

Should your business switch to green energy?

For most UK small businesses, a green tariff is now a low-risk decision. Costs are close to standard tariffs, switching is straightforward, and the certification exists to back up your claims.

It's worth prioritising if you sell to larger clients, respond to tenders, or want a verifiable sustainability story. It's worth comparing carefully. Not every green-labelled deal offers the same level of proof, so don't take the first one you find.

When you get a quote with MoneySuperMarket, our partners at Bionic can compare green and standard tariffs side by side. You'll see the real difference for your business before you switch.

Green business energy FAQs

Still unsure about green energy and your business? Check out the answers to some of our most frequently asked questions.

Is renewable energy more expensive for businesses?

Not always. Green tariffs used to carry a clear price premium, but that gap has narrowed as renewable capacity has grown. Some suppliers now price green and standard tariffs the same. Comparing live quotes is the only way to check the real difference for your business.

What is REGO certification?

REGO stands for Renewable Energy Guarantee of Origin. It's the UK's official certificate system proving that electricity was generated from a renewable source. Suppliers retire one REGO certificate per megawatt hour of renewable electricity supplied to your business.

Can SMEs go fully renewable?

Yes. Many suppliers offer 100% REGO-matched tariffs for small and medium businesses. Ask your supplier to confirm the tariff is fully matched, rather than partially backed by certificates, before you switch.

Do green tariffs reduce my carbon footprint?

A REGO-backed green tariff can reduce your reported Scope 2 emissions under standard carbon accounting rules. It does not change the physical electricity reaching your premises, since all supply comes from the same National Grid.

Are grants available for green business energy?

Grants tend to focus on generating your own renewable energy, such as solar installation, rather than on switching tariffs. Check current government and local authority schemes, as availability changes and varies by region.

How do suppliers verify renewable sources?

Suppliers buy or generate REGO certificates for renewable electricity added to the grid. They retire certificates equal to your usage under a green tariff. You can ask your supplier for this evidence directly, and a credible supplier will provide it.

Is green gas available for businesses?

Yes, though it's less widely available than green business electricity. Green gas, usually biomethane, is produced from organic waste and matched to your usage through certificates. Ask suppliers directly about pricing, since it can cost more than standard gas.

Will customers value my business using green energy?

Many customers do notice, particularly in sectors where sustainability affects buying decisions or tender scoring. The value depends on being able to prove your claim with REGO evidence, rather than a green tariff name alone.

Compare green business energy deals

Choosing between green and standard tariffs should not mean digging through supplier small print alone.

MoneySuperMarket compares quotes from trusted suppliers, including green and low-carbon options. Weigh up cost, certification, and contract terms in one place. Get a quote to see what's available for your business today.