What is a green energy tariff?
A green energy tariff is an electricity plan where your supplier matches some or all of the power you use with renewable generation, like wind or solar. On paper, your usage is backed by clean power rather than gas or coal.
The wrinkle is that “green” covers a lot of ground. Some green energy tariffs come from suppliers who actually generate or buy renewable power. Others simply buy certificates to label an ordinary supply as green. Both are legal. They are not the same thing.
So is a green energy tariff worth paying for, and how do you tell the genuine ones from the window dressing?
Are green energy tariffs worth it?
For a lot of households, yes, as long as the price is right and the tariff is genuinely backed by renewables. You lower the carbon footprint of your electricity, and these days a green energy tariff is often no dearer than a standard one.
The honest caveat: a green energy tariff does not change the actual electrons coming down your street. What it changes is what your supplier is required to put back into the grid on your behalf. That still counts, but it helps to understand what you are buying.
5 checks before you pick a green energy tariff
Before you switch to a green energy tariff, run these five. They help you spot a genuinely green deal from a lightly painted one, without needing a science degree.
Your green energy checklist
- Check the annual cost first. A green deal should be competitive, not a premium for a badge.
- Ask whether the electricity is REG backed, the certificate scheme the regulator uses.
- Look for suppliers that actually invest in or generate renewable power, not just buy certificates.
- Check whether gas is included, and whether it is offset in any meaningful way.
- Read the exit fees and contract length before you sign, as with any tariff.
Are green energy tariffs more expensive?
Not necessarily, not any more. There was a time when going green meant paying a clear premium. Today, plenty of green energy tariffs sit right alongside standard deals on price, and some of the cheaper options on the market happen to be renewable.
As always, it depends on your supplier and your usage. Compare the total annual cost of a green energy tariff against a standard one for your postcode, and let the numbers decide rather than the marketing.
How to switch to a green energy tariff
Switching is quick and your supply never drops. You compare, choose a green energy tariff that suits your budget, and the new supplier handles the move, usually within about two weeks. No engineer, no disruption.
Weighing up your options? Our guides on fixed price energy tariffs and tracker tariffs explain how a green deal can be either. And if switching is new to you, how to switch energy supplier covers the basics.
For the background on the certificate scheme, the regulator Ofgem explains REGO on its site. Whatever you choose, doing nothing on an old, pricier tariff helps neither your bill nor the planet.
Frequently asked questions about green energy tariffs
- Do green energy tariffs actually reduce carbon?
- Genuinely renewable backed tariffs support clean generation on the grid. The impact is real but indirect, since your home still draws from the same shared network.
- Are green energy tariffs always more expensive?
- No. Many now match or beat standard deals on price. Compare the total annual cost for your usage before you decide.
- What does REGO backed mean?
- REGO is the regulator’s certificate scheme that shows a unit of electricity came from a renewable source. It is worth checking, though on its own it does not guarantee new investment.
- Can I get a green energy tariff for gas too?
- Some suppliers offer green or carbon offset gas, but it varies a lot. Check exactly what the green label covers before you switch.
