What Are the Benefits of Your Business Switching to a Green Electric Tariff?

November 12, 2021

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With the UK looking to slash its emissions by 78% by 2035, we all need to start doing our bit for the environment.

Is your business looking to switch to a green electric tariff?

Businesses are no exception and more and more business leaders are starting to consider their impact on the environment.

For businesses looking to make their operations greener, a green energy tariff can be the first port of call. Yet for many consumers, navigating the green energy market can be difficult. Indeed, 23% of consumers find the jargon around green energy confusing

If you’re thinking about transitioning your business to a green energy tariff then we’re here to help. That’s why we’ve pulled together this handy guide all about green energy, as well as its benefits to your business.


What is Green Energy?

Green energy is the umbrella term given to energy that’s generated through a renewable source, such as solar, wind, geothermal, hydroelectric etc. They’re better for the environment than fossil fuels and will also never run out; making green energy a valuable resource in the fight against climate change.

Currently, most of the world is run on fossil fuels. We put petrol in our cars, burn gas to heat our homes and burn coal and waste to generate electricity. This releases carbon dioxide and greenhouse gases into the atmosphere and contributes to air pollution and climate change.


What is a Green Energy Tariff?

A green energy tariff allows individuals and businesses to buy energy from renewable sources. These days, most energy providers will offer a form of green tariff, including all of the big 6 energy suppliers. Some of these will be 100% renewable and others will be a mixture of fossil fuel and green.

Yet as renewable energy grows in popularity, consumers need to know the ins and outs of how green tariffs work; there are a lot of misconceptions surrounding green energy tariffs, as well as occasional misleading claims by energy providers.


How Do Green Tariffs Work?

One of the biggest misconceptions surrounding green energy tariffs is how it’s distributed to businesses and homes. 15% of people believe that renewable energy is distributed using a different network, straight from production to consumers. This isn’t how green energy tariffs work, however.

Even if you sign up for a green energy tariff, your business will still be supplied with energy from the national grid. You may be wondering what’s the point of opting for a green tariff if you’re just getting the same energy as your neighbour.

Some green tariffs can still make a difference though, as your supplier is obliged to match some or all of the energy you use with energy from renewable sources. This means that your green energy tariff is helping to increase the amount of renewable energy that goes into the national grid.


Are some Green Tariffs Misleading?

Sadly, the current system can often be misleading for many consumers. Whilst many green energy tariffs advertise themselves as 100% renewable, this isn’t always the case; in some instances, it can just mean that the supplier has ‘offset’ their fossil fuel production using REGOS.

So, what are REGOS? Renewable Energy Guarantees of Origins are issued by Ofgem to prove that the energy has been generated by renewable sources. Whilst this may sound like a good thing, it can inadvertently contribute to misleading customers about green tariffs, here’s why.

The companies that generate green energy are allowed to sell their green energy and REGOs separately. This allows an energy supplier to purchase these certificates to ‘offset’ the electricity they get from the wholesale market (some of which will be generated with fossil fuels) and legally call their energy ‘100%’ renewable.

The biggest problem comes from how cheap REGOs are to buy; it costs energy companies around £1-£2 per customer per year to effectively ‘greenwash’ these energy tariffs. As a consequence, consumers can be left thinking their tariff is truly all renewable energy when in reality it’s simply offset through REGOs.


Why Are Green Tariffs Important?

Despite the issues with how green tariffs are labelled, supporting those ‘true’ green tariffs is important as it increases the proportion of renewable energy on the national grid and helps to financially support green energy providers.

Ensuring more and more of the country is run on renewable energy is important for the future of the planet. Right now, global fossil fuel consumption is unsustainable and could mean that global temperatures surpass the 1.5-degree increase. An increase of more than that could see the effects of climate change become even more deadly than they already are, with extreme flooding, heatwaves, droughts and wildfires seriously affecting some parts of the world.


What Are the Benefits of Switching to a Green Tariff?


  • Protect the Planet

The obvious benefit of switching to a green tariff is the positive impact it can have on the planet. Whilst there may be misleading green tariffs out there on the market, opting for a ‘true’ green energy tariff from a reputable energy supplier can help to support the renewable energy sector. The fewer fossil fuels we burn, the fewer greenhouse gases we release and the greater chance of minimising the devastating effects of climate change we have.


  • Work Towards Net-Zero Emissions

If your business is looking to do its bit for the planet, you may be looking to reach a net-zero or carbon-neutral goal. If so, opting for a green tariff could be your first step on this journey. Choosing to run your business on renewable energy could help to considerably reduce your carbon footprint and leave you with less emission to offset. Using technology like IPSUM or bringing in consultants could help you determine your remaining emissions, so you know how much you need to offset with green projects or carbon credits.


  • Generate Good PR for Your Business

Doing positive things for the planet often attracts positive attention for your business. After achieving your carbon-neutral goal, you can advertise your sustainable business practices in marketing materials, as well as using your new green credentials as a unique selling point for your business and helping to set you apart from the competition. With more and more consumers starting to care about the environment, your business needs to stay ahead of the curve and do its bit for the planet.


  • Prepare Your Business for the Future

It’s safe to say that renewables are the future of energy. Coals are already being phased out and gas is more expensive than ever, meaning an increase in green energy cannot come quickly enough. With the UK looking to slash emissions by 78% by 2035, more and more energy will start to be generated through renewable sources. At some point in the not-so-distant future, your business will hopefully be run on renewable energy. Switching to a green energy tariff today means you can be part of that renewable energy revolution and prepare your business for the future.


  • Attract and Retain the Best Employees

Your consumers aren’t the only ones who have concerns about the future of the planet; a study reveals that 60% of UK job hunters would look at a company’s sustainability commitment before accepting a position, with 34% of millennials refusing to work for a company that had a harmful impact on the planet. Committing to operating sustainably can therefore help your business attract and retain the best employees, giving your business the boost in skills and talent it needs to remain competitive in an increasingly difficult market.


Switch to a Green Tariff With Tariff.com Today

If your business is looking to take its first steps towards green ways of operating, get in touch with our consultants today. We’ll get to know your business and its energy requirements, ensuring we find a green energy provider that fits with your business, budget, and energy goals.


Why You Should Choose Tariff.com

Transparent Service

Here at Tariff.com, we put transparency at the heart of all our energy services. We’re not affiliated with any single energy provider, so we’ll always shop around to find you the best deal on your green energy.

Industry Experts

We’ve pulled together an expert team of consultants, who can advise your business on anything from energy and going carbon neutral to security and IT. We use our experience and knowledge of the market to pass on great savings to you.

Empower Your Business

Beyond saving your business time and money, we aim to empower your business to get the most from your energy and chosen supplier. Whether that’s optimising energy usage, switching to green energy, or going carbon neutral, we’ll help you achieve your energy goals.



At Tariff.com, we offer independent price comparisons and professional switching support for businesses looking to save money on their energy. Looking to make a positive change? Tariff.com can also help your business switch to green energy, as well as offer advice on how to reduce your carbon footprint and work towards a carbon-neutral target.

To find out how much you could be saving on your business utilities or to do your bit to help the UK reach its net-zero 2050 target, get in touch or submit a bill today.