Power your business the greener, smarter way.
What is green business energy?
Green business energy refers to electricity and gas sourced from environmentally friendly, renewable or low-carbon sources. This includes solar, wind, hydro, and biomass.
For UK businesses, switching to green energy is a proactive step toward lowering carbon emissions, meeting sustainability targets and appealing to eco-conscious customers and stakeholders.
Opting for green business energy is about more than just environmental benefits – it’s also about future-proofing.
As government regulations tighten and public demand for sustainability rises, businesses that invest early in cleaner energy gain a competitive edge. Choosing a renewable energy tariff shows a tangible commitment to corporate social responsibility (CSR) and can even help attract funding, clients, or partnerships with similar values.
In many cases, the cost difference between standard and green tariffs is now minimal. With advancements in renewable generation and growing competition among suppliers, green energy has become an affordable and practical choice for businesses of all sizes – from startups to large corporations.
Understanding green business energy tariffs
Green business energy tariffs are plans offered by suppliers that either use or match your electricity consumption with renewable sources.
These are typically supported by the UK’s REGO certification system, helping verify that your usage is backed by renewably generated electricity.
While the label “green tariff” sounds simple, there are two important models you should understand.
Green-Sourced tariffs
These tariffs supply your business with electricity that has been directly generated from renewable sources – think wind farms, solar panels, hydroelectric power stations and biomass facilities (power plants).
The supplier enters into purchase agreements with renewable generators, meaning the electricity you use is truly green from the point of generation to the point of use. This is the most transparent and impactful type of green tariff.
With a green-sourced tariff, your business plays a more active role in supporting the renewable sector. It encourages investment in additional capacity and cleaner technology.
Some suppliers also go further by owning and operating their own wind or solar farms, offering a direct connection to renewable energy generation.
Green-Matched tariffs
In this model, the electricity you consume might not come directly from a renewable source, but your supplier ensures that the same amount of renewable electricity is generated and added to the grid.
This is done using REGO certificates (more on those shortly). It’s a “balancing” approach rather than a direct supply, but it still contributes to overall green energy demand.
These tariffs are more accessible and often cheaper than green-sourced plans, making them popular with SMEs and companies just beginning their sustainability journey.
However, it’s worth asking suppliers how actively they support renewable generation versus just purchasing certificates.
Carbon offsetting for business energy
Carbon offsetting is a mechanism that allows businesses to counterbalance their carbon emissions by investing in projects that reduce or remove CO₂ from the atmosphere.
For businesses using gas or electricity from non-renewable sources, offsetting provides a way to operate in a more environmentally responsible manner, even when direct reductions are not feasible.
Offsetting schemes vary widely. Common projects include reforestation, peatland restoration, renewable energy development (especially in developing countries), and methane capture.
These initiatives are typically certified by international standards such as Gold Standard or Verified Carbon Standard (VCS), ensuring that your investment leads to real, measurable environmental impact.
For many businesses, offsetting is part of a broader sustainability plan. While it shouldn’t be seen as a complete substitute for reducing energy consumption or switching to renewables, it’s a helpful transitional tool. Suppliers often bundle carbon offsetting into gas tariffs to offer “carbon-neutral” options – ideal for businesses in hard-to-decarbonise sectors.
What are REGO certificates?
REGO stands for Renewable Energy Guarantees of Origin, a scheme that certifies the origin of renewable electricity in the UK. For every 1 megawatt hour (MWh) of renewable electricity generated, a REGO certificate is issued.
Energy suppliers use these certificates to prove to Ofgem and to customers that the energy sold under a “green” tariff has been backed by actual renewable generation.
While REGOs bring transparency to the market, they’ve also faced criticism. Some suppliers buy REGOs separately from actual renewable energy generation, allowing them to “greenwash” otherwise standard electricity. This has prompted calls for reform and for suppliers to disclose more clearly how they source both energy and certificates.
For businesses seeking authenticity, it’s worth digging into how your supplier obtains REGOs. Do they come bundled with green electricity via a power purchase agreement (PPA), or are they simply bought on the secondary market to label a tariff “renewable”? The more direct the link to renewable generation, the more credible the green claim.
UK suppliers offering 100% renewable business energy
A growing number of UK energy suppliers now offer tariffs that are backed by 100% renewable electricity. Here are some leading names in the business energy space:
Ecotricity
Ecotricity is one of the UK’s most authentic green energy suppliers. They generate electricity from their own wind and solar parks and invest customer bills directly into building new renewable infrastructure. Their model is focused on ethical operations, transparency and reinvestment—not profit.
Businesses choosing Ecotricity benefit from 100% green electricity backed by direct generation, and their gas plans are carbon-neutral via bio-gas and carbon offsetting. As a certified B Corp, Ecotricity appeals to organisations with strong ESG goals.
Good Energy
Good Energy sources from a diverse network of over 1,600 independent UK renewable generators. Their supply includes wind, solar, hydro and bioenergy. They’ve been industry leaders in renewables since the early 2000s and maintain exceptionally transparent sourcing practices.
For business customers, Good Energy offers 100% renewable electricity tariffs, green gas add-ons, and solar services for on-site generation. Their detailed carbon reporting options are great for CSR benchmarking and compliance.
Octopus Energy
Octopus is known for its innovative approach to energy supply, blending sustainability with smart tech. All their business electricity tariffs are backed by 100% renewable sources, and they also offer carbon-offset gas options. Flexible pricing structures make them especially popular with SMEs and scale-ups.
Their Kraken platform provides real-time insights into usage, helping businesses reduce waste and improve efficiency. Octopus is one of the fastest-growing energy providers in the UK, with a strong focus on user experience and green innovation.
EDF Energy
While EDF is historically associated with nuclear, they’ve made significant inroads into renewable electricity supply. Their green tariffs are REGO-certified and include 100% renewable electricity. EDF also supports businesses with energy audits, carbon footprint reports and efficiency upgrades.
Their scale allows them to offer competitive pricing and robust customer support. Large businesses, in particular, may benefit from their bespoke energy plans and technical consulting services.
SmartestEnergy
SmartestEnergy is a leading supplier for organisations seeking tailored, traceable green energy solutions. They source electricity from independent UK renewable generators and provide 100% REGO-backed plans with detailed origin disclosure.
Their commercial-grade plans are well-suited to medium and large enterprises that need flexibility and advanced sustainability reporting. SmartestEnergy also supports Power Purchase Agreements (PPAs) for businesses that want to secure long-term renewable supply contracts.
ScottishPower
ScottishPower generates 100% of its electricity from its own wind farms, making it one of the few large suppliers with vertically integrated renewable generation. Their business tariffs reflect this commitment, with straightforward pricing and full REGO backing.
The supplier offers strong value for organisations looking for reliability, clear billing, and net-zero alignment. Their investment in smart infrastructure also enables better consumption tracking and demand forecasting.
SSE
SSE is a long-established player in the UK energy market and has committed heavily to decarbonisation in recent years. Their business tariffs include 100% renewable electricity backed by REGOs and can be bundled with carbon offsetting for gas usage.
They offer a range of services beyond supply, including EV charging infrastructure, energy efficiency audits, and building decarbonisation support. SSE’s solutions are especially well-suited to multi-site operations and energy-intensive industries seeking a strategic partner for sustainability.
OVO Energy
OVO is an increasingly popular choice for eco-conscious businesses. Their 100% renewable business electricity is backed by REGO certificates, and they offer carbon-neutral gas by offsetting emissions through certified environmental projects. They’re also one of the few major suppliers aiming for net-zero operations by 2035.
What sets OVO apart is their integrated approach: smart meters, usage tracking apps, and support for demand-side response are all part of the package. They’re a great match for SMEs and progressive businesses aiming to reduce both costs and carbon.
