In short
Green business energy is gas or electricity sold with evidence that matching renewable energy was produced: Renewable Energy Guarantees of Origin (REGOs) for electricity and biomethane certificates for green gas. Compare green suppliers on how much of your supply is certified, the evidence you get, the price against a standard quote and the contract terms.
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What makes a business energy tariff green
The electricity and gas your premises use arrive through the same wires and pipes whichever supplier you choose. A green tariff does not change what comes out of the socket or the boiler. What it changes is the evidence behind the supply: the supplier matches some or all of the energy you use with certificates showing that the same amount of renewable energy was produced and put into the system.
For business customers in Great Britain that evidence usually takes two forms:
- Renewable electricity is backed by Renewable Energy Guarantees of Origin, known as REGOs. Ofgem issues one REGO for each megawatt hour of eligible renewable electricity a generator produces, and suppliers use them to show where their electricity comes from. Our guide to REGO certificates explains the scheme in detail.
- Green gas is backed by certificates from biomethane producers. Fidelity Energy describes biomethane as a renewable gas made from organic matter such as agricultural waste, refined and injected into the existing gas grid, with the same characteristics as fossil gas. REGOs cover electricity only, so a green gas option relies on these separate biomethane certificates.
Because the change is in the paperwork rather than the pipes, Fidelity Energy says moving to a green electricity or gas tariff needs no new equipment on site. The parts that need care are the contract wording and the evidence you are given, which is what the rest of this page covers. For how the products themselves work, our sister site explains green electricity for business and green gas for business.
Green options you can compare
| Option | What it means | What to ask |
|---|---|---|
| Standard supply | Electricity or gas with no specific renewable backing for your contract. The supplier's overall fuel mix still applies. | Ask for a standard quote anyway, so you can see what any green option adds. |
| Part REGO-backed electricity | A chosen share of your electricity is matched with REGOs. | What share is covered, and is it stated in the contract? |
| Fully REGO-backed electricity | All of the electricity on the contract is matched with REGOs. | Will the supplier confirm the volume and period in writing for your records? |
| Green gas blend | A chosen share of your gas is matched with biomethane certificates. | What certificates are used, what share is covered and for which period? |
| Virtual power purchase agreement (VPPA) | A financial contract with a new wind or solar project, usually for 10 years or more, according to Fidelity Energy. The power is not physically delivered to your site, so it sits alongside your normal supply contract. | How long is the commitment, how is it settled, and how does it fit with your supply contract? |
Green energy is not all or nothing. Fidelity Energy says you can choose how much of your electricity is certified and how much biomethane is blended into your gas, and that it prices each blend side by side so you can see what each step costs. Comparing like-for-like matters here: a quote with a green element should be compared with a standard quote on the same consumption, term and start date, as described in our business electricity comparison and business gas comparison guides.
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Checking a supplier's green claims
Words such as "green", "renewable" or "clean" on a quote are not the same as evidence. Before you pay for a green option, ask the supplier what sits behind it.
Fuel mix disclosure. Every licensed electricity supplier in Great Britain must tell its customers the mix of fuels (coal, gas, nuclear, renewable and other) used to generate the electricity it supplied. Ofgem says this comes from the Electricity (Fuel Mix Disclosure) Regulations 2005, now standard licence condition 21: suppliers disclose it each year for the period 1 April to 31 March, by 1 October. REGOs are the main evidence suppliers use for the renewable part, so a supplier's disclosure is a sensible first document to ask for.
Certificates for your contract. A supplier's overall fuel mix is not the same as the backing for your contract. Ask for written confirmation of the share of your supply that is certified, the type of certificate and the period it covers.
The right certificates for a GB supply. Ofgem says that from the disclosure period beginning 1 April 2023, European Guarantees of Origin are no longer recognised for fuel mix disclosure in Great Britain. If a quote for a GB supply talks about guarantees of origin, ask whether it means REGOs.
The contract wording. The green element should appear in the contract or its schedules, not only in a brochure. Check what happens to it if the contract rolls over or you move to out-of-contract rates, because a renewal offer may not carry the same green content.
Green energy and your carbon reporting
Many businesses buy green energy because a customer, tender, lender or board asks them to report emissions or show progress towards net zero. Certificates are the link between your energy contract and that reporting.
Fidelity Energy says REGO-backed electricity lets a business report zero Scope 2 emissions on a market basis under the Greenhouse Gas Protocol Corporate Standard, and that green gas can reduce Scope 1 emissions. How your own figures are prepared is a matter for whoever compiles your reporting, so ask them what evidence they need before you choose a tariff. Typical requests are the supplier's written confirmation of certified volumes, the period covered and the supplier's fuel mix disclosure.
For organisations with many sites, the harder part is often collecting the data. Fidelity Energy offers an energy and carbon reporting platform, Etainabl, which brings utility data from multiple sites and meters together; ask us if that would help alongside a new contract.
Want this looked at for your premises?
Tell us your sites, meters and renewal dates and we will reply by email with options.
Green energy does not remove the Climate Change Levy
A green tariff changes the evidence behind your supply, not the tax on it. The Climate Change Levy main rates apply to electricity and gas supplied to industrial, commercial, agricultural and public services businesses, and GOV.UK says the exemption for electricity from renewable sources only applies to electricity generated before 1 August 2015. In practice, a REGO-backed business electricity contract will normally still show the levy on the bill.
Some users do not pay the main rates for other reasons: businesses that use small amounts of energy, domestic users and charities engaged in non-commercial activities. Energy intensive businesses with a Climate Change Agreement with the Environment Agency can get reduced rates. VAT is unaffected by whether the energy is green. Our page on VAT and Climate Change Levy explains what a quote should include, and the charity energy guide covers the charity position.
Questions to ask before paying a green premium
A green option can cost more than a standard quote for the same supply, or the difference can be small; it depends on the supplier, the share you choose and the market when you buy. These questions help you judge whether a premium is worth it:
- What exactly is certified? Electricity, gas or both, and what share of each.
- What evidence will I get? REGOs for electricity and biomethane certificates for gas, confirmed in writing with volumes and dates.
- Is the green element in the contract? Including what happens at renewal or if the contract rolls over.
- How does the price compare? Ask for a standard quote and a green quote on the same consumption, term and start date, so the difference is clear.
- Does it meet the requirement behind the request? If a customer or tender asked for green energy, check what evidence they accept before you sign.
- What commission is included? Broker costs are shown in the principal terms of the contract; see energy broker fees.
Remember there is no cooling-off period once you agree a business energy contract, so settle these questions first. Our page on the business energy cooling off period explains why. If you are coming up to renewal, business energy contract renewal explains the timing.
Beyond the supply contract
A green tariff is usually the quickest change a business can make, because it needs no equipment and can start when your next contract starts. Some businesses also want to generate or use energy differently. Fidelity Energy also offers commercial solar panel installation and electric vehicle charging infrastructure, and advises on virtual power purchase agreements with new wind or solar projects. These are longer projects with their own costs and terms; ask us if you would like an introduction.
For multi-site groups and large users, how you buy matters as much as what you buy. Fidelity Energy can source both renewable power and green gas on fixed or flexible contracts; see fixed vs flexible business energy for the buying-strategy choice and half-hourly business electricity for larger electricity supplies.
How we help you compare green business energy
Forever Communications works as an agent of Fidelity Energy, an independent business energy broker and consultancy. We collect your bills and your green requirements, Fidelity Energy asks the suppliers on its panel to price them (it says it compares 24+ suppliers; that is a broad panel, not every supplier in the market), and we help you compare standard and green options side by side before you decide. Fidelity Energy then arranges the contract with the supplier you choose.
We can help you:
- decide how much of your electricity and gas to cover, based on what your reporting or customers need
- compare REGO-backed and green gas options against standard quotes on the same terms
- check that the green element and its evidence are written into the contract
- line up green contracts across several sites so they start and end together
We do not rank suppliers on price or on how green they are. The comparison is about evidence, price and terms, and the decision is yours.
What the comparison costs. Fidelity Energy is normally paid commission by the supplier you choose, added to the unit rate and/or standing charge, so it is included in the rates you pay; you can instead opt at the start to pay Fidelity Energy a fee by invoice. Forever Communications receives a share of Fidelity Energy's payment. Suppliers must show broker costs in the principal terms of your contract; see energy broker fees.
If something goes wrong. Ofgem says a broker paid by a supplier must belong to an approved redress scheme. Fidelity Energy is on the Energy Ombudsman's broker register, so a complaint about the broker service that is not resolved can be taken there; see energy broker ombudsman.
For how business gas and electricity supply works in general, see our sister site Business Gas and Electric.
Contact us with a recent bill for each supply and the share of green energy you have in mind, and we can arrange quotes from Fidelity Energy's panel.
Green business energy guides
Frequently asked questions
Which business energy suppliers offer green energy?
Green options vary by supplier, by supply and over time, so we do not publish a list or ranking. Instead we ask Fidelity Energy to price green and standard options across its panel of suppliers for your actual supplies, and we help you compare the evidence, price and terms.
Is green business energy more expensive?
It can be, depending on the supplier, how much of your supply you want certified and the market when you buy. The only reliable way to know is to compare a green quote with a standard quote for the same consumption, term and start date.
Does a green tariff mean my electricity comes from a wind farm?
Not physically. Your electricity still arrives through the same networks as everyone else's. A green tariff means the supplier holds certificates, REGOs for electricity, showing that renewable generation matched the share of your use the contract covers.
What is green gas for businesses?
Green gas usually means some or all of your gas use is matched with certificates from biomethane producers. Fidelity Energy describes biomethane as a renewable gas made from organic matter, refined and injected into the gas grid, with the same characteristics as fossil gas, so boilers need no changes.
Do I still pay Climate Change Levy on green electricity?
Usually, yes. GOV.UK says the renewable-source exemption only covers electricity generated before 1 August 2015. Whether you pay the levy depends on how the energy is used and who you are, not on whether the tariff is green.
Do I need new equipment to switch to green business energy?
No new equipment is needed for a green tariff, because the change is to the contract and certificates rather than the physical supply. Fidelity Energy makes the same point. Installing solar panels or EV chargers is a separate project.
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