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Green Energy Tariffs: What They Are and How to Choose One

Friday, 8th August 2025

Green Energy Tariffs: What They Are and How to Choose One

With energy bills rising and environmental concerns becoming more urgent, many households are asking: should I switch to a green energy tariff? Choosing the right energy plan can feel overwhelming, especially when you're trying to balance affordability with sustainability. But don’t worry—we’ve got you covered.

In this guide, we’ll explore what a green tariff actually means, how a renewable energy tariff differs from standard options, and what to watch out for when making the switch. Whether you’re going green for the planet or for your peace of mind, this blog breaks it all down.

What Is a Green Energy Tariff?

Simply put, a green energy tariff ensures that some or all of the electricity or gas you use is matched by energy from renewable sources. This might include wind, solar, hydro or biomass. Your supplier doesn't necessarily send green energy straight to your small home, but it supports the generation of renewable energy on your behalf.

  • Energy matched using REGOs (Renewable Energy Guarantees of Origin)
  • May include electricity, gas, or both
  • Supports renewable generation even if your usage doesn’t change

What Is a Green Tariff and How Does It Work?

A green tariff works by matching your energy usage with renewable energy certificates. When you use 1,000 kWh, your supplier must prove that 1,000 kWh of green energy was added to the grid. These are verified using certificates like REGOs in the UK.

There are two main types of green tariffs:

  • 100% renewable tariffs: All of your electricity is matched with renewable sources
  • Partially green tariffs: Only a portion of your usage is offset

Is a Renewable Energy Tariff Right for Me?

Renewable energy tariff?

A renewable energy tariff is an energy plan where your electricity or gas usage is matched by energy generated from renewable sources like wind or solar. While the energy delivered to your home may come from the grid, your supplier commits to sourcing an equivalent amount from renewables, helping to reduce your carbon footprint.

Green Energy Tariffs vs Standard Tariffs

You might be wondering what makes a green energy tariff different from a standard tariff. Here are the key distinctions:

FeatureGreen TariffStandard Tariff
Energy Source Renewables (matched via REGOs) Mixed, including fossil fuels
Environmental Benefit Supports clean energy generation No renewable sourcing
Pricing May be slightly higher or similar Varies by market

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How to Know If a Green Tariff Is Truly Green

Sadly, not all green tariffs are created equal. Some suppliers rely heavily on REGOs without directly investing in renewable energy. This can lead to “greenwashing,” where the environmental benefit isn’t as strong as it seems.

Look out for:

  • 100% renewable generation: Preferably backed by power purchase agreements (PPAs)
  • Transparency: Clear information on the energy mix
  • Independent accreditation: Uswitch Gold/Silver/Bronze ratings or Energy Saving Trust approvals

Pros and Cons of Green Energy Tariffs

Benefits

  • Reduces your carbon footprint
  • Encourages demand for clean energy
  • Often competitively priced

Potential Drawbacks

  • Not all tariffs are backed by real renewable investment
  • May cost slightly more than standard deals
  • Some suppliers are vague about their energy sources

How to Choose the Right Renewable Energy Tariff

Choosing the best renewable energy tariff comes down to three things: transparency, accreditation, and value for money.

Tips:

  1. Use comparison tools like Uswitch or Which? to filter verified green plans
  2. Check supplier websites for renewable sourcing details
  3. Look for plans that back clean energy directly (e.g. PPAs)
  4. Read the fine print on exit fees, rates, and contract length

Are Green Energy Tariffs More Expensive?

Not necessarily. In fact, some green tariffs are priced competitively with fossil-fuel-based plans. As more renewable energy enters the market, prices are becoming more stable and accessible for your new home.

Keep in mind that the "green premium" is often small—and the long-term environmental value is high.

What’s the Future of Green Energy Tariffs?

As the UK aims for net-zero emissions, demand for green energy tariffs will only grow. From time-of-use tariffs linked to solar and wind patterns to EV-friendly green plans, the future is bright—and increasingly electric.

Some suppliers are even offering dynamic green tariffs that adjust rates based on renewable generation availability.

Should You Switch to a Green Tariff?

Switching to a green energy tariff is a simple but powerful way to reduce your environmental impact. While it may require a little extra research, the rewards—both financial and environmental—are worth it.

Whether you’re going green for ethical reasons, long-term savings, or both, a renewable energy tariff is a smart step forward.

So, are you ready to make the switch? Compare accredited green tariffs today and take control of your energy future—one kWh at a time.

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