Green energy tariffs are everywhere now. Almost every supplier offers one and the marketing is compelling. But before you pay a premium for green credentials, it is worth understanding exactly what you are buying — and whether it actually makes the environmental difference you think it does.

What Does 100% Renewable Actually Mean on Your Bill?

When a supplier says your electricity is 100% renewable, they do not mean electrons from a wind turbine physically flow into your home. The UK grid mixes all power sources together. What they mean is they purchase Renewable Energy Guarantees of Origin (REGOs) — certificates proving a unit of renewable electricity was generated somewhere. Purchasing REGOs is legitimate and supports the market, but the quality varies enormously. Some suppliers buy directly from UK wind farms they have contracts with. Others buy cheaply on the open market from older hydro plants in Scandinavia. The distinction matters if you care about genuine impact. If you want to cut your energy bills today, it only takes a few minutes.

Green Tariffs That Actually Make a Difference

• Power Purchase Agreements: Direct supplier contracts with specific UK generators — your money funds those projects
• Time-matched generation: Some suppliers match your consumption to renewable generation hour by hour, not just annually
• Good Energy and Ecotricity invest directly in new UK generation capacity and are the most credible green suppliers

How Much Does Going Green Actually Cost?

The premium in 2026 varies widely. Some mainstream green tariffs cost no more than their standard equivalent — the REGO cost is minimal and absorbed. Premium suppliers like Good Energy may charge 5-15% above the cap rate. On a typical £1,200/year bill, a 10% premium adds £120/year.

Be Greener Without Paying More

• Check your fuel mix: Ofgem publishes Fuel Mix Disclosure data — many standard tariffs are already 65-80% renewable in 2026
• Use the National Grid Carbon Intensity app: Shows when the grid is greenest — typically midday and overnight when wind peaks
• Reduce consumption first: Using less energy has a bigger environmental impact than choosing a green tariff at the same usage level
• Install solar panels: Generating your own renewable electricity is the most direct green action you can take

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