- Decide if a green energy deal is right for your business
- Choose a green energy suppliers
- Switch to a green energy tariff
Renewable or ‘green’ energy comes from natural resources that can be replenished, including wind, solar, water power and other sources.
A growing number of energy companies generate this power and feed it into the National Grid. This comes in the form of electricity and renewable natural gas made from organic waste.
As a customer you won’t notice any changes to your electricity or gas supply if you switch to one of these suppliers.
Rather, when you switch to a green ‘tariff’ the amount you pay for energy goes toward these renewable sources and other activities that reduce carbon.
A green energy tariff may be right for your business if:
- you want to use green energy but can’t generate your own
- you want to lower your carbon emissions
- you’re willing to pay a bit more to support renewables
- your buyers are seeking a greener supply chain
- it will improve your business reputation
As green tariffs can be no cheaper than standard deals and may be more expensive, they may not be right if you’re trying to reduce energy costs as much as possible.
Some green tariffs offer ‘off-peak’ savings however – this means you’ll pay lower costs for using energy when demand is lower.
All of the UK’s main suppliers offer green tariffs. There are also several smaller suppliers that specialise in only renewable energy.
One way suppliers make sure their energy is green is by producing renewable energy which they feed into the National Grid.
If you want to make sure you’re directly subsidising renewables, choose a supplier that uses 100% green energy for its green tariff.
Specialist green energy suppliers
A growing number of suppliers offer 100% renewable energy.
This is taken entirely from renewable sources such as wind, solar or biomass.
Some offer flexible off-peak rates that mean you pay less for energy when fewer people are using it, such as for overnight electric car charging.
Switching to a new tariff may not be an option due to energy suppliers not taking on new contracts.
Speak to your current provider about switching onto one of their green tariffs before considering a new supplier.
Switch off a default energy tariff
If you have a new business premises or your last contract ended without a renewal plan, you may be on a ‘default’ energy tariff.
These can be higher than green energy tariffs.
The cost of energy is often highest under this type of deal. Check to see if your supplier allows switching to a cheaper plan and if a notice period is required.
Learn more about switching your business energy on the OFGEM website.
Shop around if your contract is expiring soon
It makes sense to shop around for a green energy tariff if your current deal is expiring soon and you don’t plan to renew it.
Suppliers may roll you onto a more expensive default plan if your deal expires without giving notice of a renewal or planned switch.
Check the OFGEM website for advice on how to compare suppliers. There are a number of services to help with this, including hiring an energy broker.