Green energy tariffs UK:
what they are and are they worth it?
Green energy tariffs are no longer a premium product. In 2026, many are the same price or cheaper than standard deals. Here is what to know before you switch.
A green energy tariff means your supplier matches your electricity use with renewable generation, verified by REGO certificates. In 2026, green tariffs typically cost 0 to 0.5p per kWh more than standard tariffs, and some cost no more at all. They are worth considering if you want to support renewable generation without paying significantly more for your energy.
What is a green energy tariff and how does it work?
A green energy tariff is an electricity plan where your supplier guarantees that the equivalent amount of energy you use is generated from renewable sources such as wind, solar, or hydro. The physical electricity delivered to your home still comes from the National Grid, which is a mix of renewable and non-renewable generation. Even on a 100% green tariff, your home will run on whatever is available in the grid at any given time.
What makes a tariff green is how the supplier accounts for your consumption. They use Renewable Energy Guarantees of Origin certificates, known as REGOs, to prove that for every unit of electricity you use, an equivalent unit has been generated from a renewable source and fed into the grid. Ofgem issues REGOs to renewable generators for every megawatt-hour they produce.
However, not all green tariffs are equally green. The way a supplier acquires its REGOs makes a significant difference.
How green is your green tariff?
Direct Power Purchase Agreements (PPAs)
The supplier buys renewable electricity directly from a UK wind or solar farm, along with the matching REGO certificates. The electricity and its certificates travel together. This is considered the most genuinely green approach because the supplier is directly funding and sourcing renewable generation. Good Energy and Octopus Energy use this model for parts of their supply.
REGO-backed tariffs
The supplier buys electricity from the open market (which may or may not be renewable) and separately purchases REGO certificates to match consumption. Critics argue this is less genuinely green because the certificates are decoupled from the electricity. However, it still creates demand for renewable generation and is the most widely available form of green tariff. Most suppliers offering green tariffs use this model.
Carbon offset tariffs
Some suppliers offset the carbon footprint of your energy use rather than matching it with renewable generation. This involves investing in carbon reduction projects such as tree planting or methane capture. These tariffs are considered less directly green than REGO-backed or PPA-sourced options, though they still reduce net emissions.
Are green energy tariffs more expensive in 2026?
The premium for green energy has fallen sharply over the past five years. REGO-backed renewable electricity now typically costs 0 to 0.5p per kWh more than a standard tariff with the same supplier, compared to 1 to 2p per kWh in 2020. Some suppliers, including Octopus Energy, charge no premium at all for their green tariff options.
In some cases, a green fixed deal can actually be cheaper than a standard variable tariff because it is fixed below the current price cap level. The best way to find out is to compare green tariffs alongside standard ones using your postcode and current annual usage. See our energy tariff comparison to see current deals including green options.
It is worth noting that gas cannot currently be supplied as fully renewable at scale in the UK. Green tariffs typically apply to the electricity portion of a dual-fuel deal. Some suppliers offer bio-methane blends or carbon-offset gas, but 100% renewable gas is not yet a mainstream option.
Compare green and standard tariffs side by side
See what green deals are available for your postcode and whether they are cheaper than your current tariff.
Questions people ask
A green energy tariff means your supplier matches your electricity use with renewable generation, verified by REGO certificates. The physical electricity in your home still comes from the National Grid, but your consumption is offset by renewable energy fed into the grid by the supplier.
Not significantly in 2026. The premium has fallen to roughly 0 to 0.5p per kWh compared to a standard tariff. Some suppliers charge no premium at all. In some cases, a green fixed deal can be cheaper than the standard variable tariff.
It depends on the tariff. Suppliers that buy renewable electricity directly from generators via Power Purchase Agreements are considered the most genuinely green. Suppliers that buy cheap REGO certificates separately from the electricity are less directly green, though they still support renewable generation. Check how your supplier sources its renewable supply.
Switching to a green tariff works the same as any energy switch. Compare green tariffs using your postcode and annual usage, choose a deal, and your new supplier handles the switch. The process takes 5 working days. No special equipment or meter is required.
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