Green tariff
A green tariff is a business electricity deal where the supplier says your use is matched by renewable generation, usually through certificates.
What it is
A green tariff is an electricity deal marketed as renewable. Usually the supplier backs it with REGO certificates (Renewable Energy Guarantees of Origin), which Ofgem issues to renewable generators. A supplier must hold enough to cover customers' use before labelling a tariff "100% renewable".
Where you will see it
In the product name, quote and Principal Terms. Look for what backs the claim: REGOs only, power bought directly from a generator, or a deal with a specific wind or solar site.
Why it matters
A 2021 government announcement noted that suppliers can currently market a tariff as green even if part of the electricity actually comes from fossil sources, provided they buy enough certificates to cover usage. It said it would review the rules. We have not confirmed what has changed since, so ask the supplier exactly what backs its claim. Not all green tariffs are equal, so question what you are paying for. See are green tariffs really green.
Green tariffs do not change the physical power in your wires: the electricity you use is the same mix as everyone else's on the grid.
Example
Illustrative: a small office uses 15,000 kWh of electricity a year, and a green deal costs 0.3p/kWh more. The extra cost is 15,000 × £0.003 = £45 a year. Ask whether that premium buys anything beyond the certificates, such as new generation capacity.
Ask for the supplier's fuel mix disclosure and how many REGOs it will retire on your behalf.
Related terms
See green business energy tariffs, REGO certificates explained and Smart Export Guarantee.
Common questions on this topic
Sources
General information only. Energy prices, rules and supplier terms change; check the latest position with your supplier, Ofgem or the Energy Ombudsman before you act.