If your company is looking to reduce its carbon footprint, meet environmental targets, or better manage its long-term utility costs, switching to a green energy tariff is an excellent place to start.
Here, we explain what green business energy tariffs are, how their rates compare to standard commercial tariffs, the best green business energy suppliers in the UK, and how to successfully switch to a more sustainable plan.
What are green business energy tariffs?
It’s a commercial energy contract where the supplier guarantees that the electricity or gas your business uses is either matched by renewable generation or offset through environmental initiatives.
When you choose green energy for your business, your supplier typically purchases Renewable Energy Guarantees of Origin (REGOs) for electricity, or Renewable Gas Guarantees of Origin (RGGOs) for green gas.
These certificates prove that for every megawatt-hour (MWh) of energy your company uses, an equivalent amount of renewable energy was generated and fed back into the national grid.
How the rates compare to standard tariffs
In the past, choosing green energy for businesses came with a significant price premium. However, the commercial energy market has evolved with the times, and the price gap between standard tariffs and green tariffs has narrowed significantly:
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Competitive pricing: Due to the expansion of wind and solar farms across the UK, wholesale renewable energy prices are highly competitive. Many suppliers now offer green electricity at rates identical to (or close to) standard energy plans.
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Green gas premium: While green electricity is readily available, green gas (biomethane) remains more scarce. As a result, tariffs that include 100% green gas still tend to carry a slight price premium compared to standard natural gas contracts.
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Wholesale market impact: Like standard contracts, the actual rates you pay on a green tariff will depend on your business size, location, consumption patterns, and wholesale market conditions at the time of signing.
How to switch to a green energy tariff
Switching your commercial premises to a sustainable plan is a straightforward process, but it requires a slightly different approach than changing a domestic energy supply:
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Speak with an advisor: A skilled energy advisor will review your existing business energy agreement to find your contract end date and notice period, helping avoid any exit fees. They’ll also evaluate your consumption data.
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Compare the market: With a detailed breakdown of your contract, energy use, and specific meter numbers (MPAN for electricity, MPRN for gas), your advisor can help compare the most appropriate green energy tariffs for your business.
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Agree to terms and switch: Once you select a new green energy tariff, your chosen provider will coordinate the switch with your local network operator. Because the physical cables and pipes remain the same, there’s no risk of an interruption to your power supply during the switch.
If you’d like to speak with a business energy advisor who can assess your current contract and usage before recommending the best green energy tariff to switch to, you can get started below.
Book a free business energy health check
Best green business energy suppliers
Most major UK commercial energy providers now offer dedicated renewable options, though their specific green credentials and sourcing methods vary. Here are a few popular examples:
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Octopus Energy: Renowned for its focus on digital innovation and sustainability, Octopus is building and investing in greener energy systems and provides 100% renewable electricity as standard across its commercial contracts. It also offers the ability to use smart green energy tariffs.
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British Gas: Offers 100% natural renewable electricity at no extra cost, backed by REGOs from natural energy sources such as solar, wind and hydro. It also offers carbon neutral gas, with 90% backed by carbon offsets or renewable gas, 100% backed by UK RGGOs.
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EDF Business Energy: EDF is the UK's largest generator of zero carbon electricity, and it recently introduced fixed renewable tariffs for smaller businesses with terms of 1 to 4 years.
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E.ON Next: Offers green energy tariffs for small or medium businesses, with larger businesses serviced by npower Business Solutions. They offer 100% renewable electricity and even generate their own electricity with biomass plants in Lockerbie and Sheffield.
Tailored packages for small and micro businesses
Business energy needs vary wildly depending on scale. If you operate a small or micro business, suppliers often provide specific protections and tailored contract structures to help you manage your overheads effectively:
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Fixed-rate green tariffs: Ideal for smaller businesses wanting price certainty. Fixed contracts lock in your standing charges and unit rates for 1 to 4 years, protecting your cash flow from wholesale market volatility.
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Micro-business protections: If your business qualifies as a micro business under Ofgem rules, you can benefit from added regulatory protections, including clearer contract terms and shorter notice periods.
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Flexible green contracts: For slightly larger or rapidly growing small businesses, some suppliers offer flexible energy procurement options that allow you to purchase renewable energy in blocks, capitalising on market dips.
Other types of renewable business energy
While switching your energy tariff is the easiest way to embrace sustainability, many forward-thinking green energy businesses look to combine green tariffs with active, on-site carbon reduction measures:
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Solar panels: Generating your own electricity on-site to drastically reduce your reliance on grid power.
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Commercial heat pumps: Replacing outdated gas or oil heating systems with highly efficient air or ground-source heat pumps.
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Smart energy monitoring: Installing advanced smart energy meters to track energy use in real time and eliminate operational waste.
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On-site battery storage: Storing excess renewable energy generated during the day to power your business during peak evening hours.
Book a business energy health check today
Navigating the commercial green energy market can be time-consuming, especially when verifying the green credentials of various tariffs and securing the most competitive rates.
At Money Helpdesk, here’s how we help UK companies of all sizes simplify their approach to energy:
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Access to leading independent commercial energy advisors
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Free initial consultation with no obligation to proceed
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Side-by-side comparisons of top green tariffs and suppliers
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Expert support managing the entire switching process
If you’d like to find out how you could improve your business by moving to a renewable tariff, you can book a business energy health check with our team today.
FAQs
For many UK companies, signing up for business green energy is the fastest and most practical way to reach Net Zero targets or lower corporate greenhouse gas emissions without installing expensive on-site infrastructure.