Let's talk about energy. There are two main types: green and brown. Green energy comes from natural sources like the sun, wind, and water. Brown energy comes from fossil fuels, which release large amounts of CO2 when extracted and burnt. This is harmful because of the excess carbon emissions being put into the atmosphere.

To put that in context: if your business is on a brown energy contract, every 1,000 kWh of electricity you use produces roughly 200 kg of CO2. A small office using 10,000 kWh a year is adding around two tonnes of CO2 to the atmosphere annually, simply through its electricity choice.

What is the difference between green and clean energy?

When you hear 'clean energy', you might think it means the same as 'green energy'. However, there are slight differences and if you know what they are, it may help with your next sustainable decision.

Green energy comes from natural renewable sources such as solar, wind, etc. It doesn’t emit any greenhouse gases and is not harmful for the environment.

Clean energy also produces zero greenhouse gases. However, the difference is that the source of the energy comes from non-renewable materials. For example, nuclear energy is considered clean energy, as it does not produce carbon emissions during operation but relies on finite resources such as uranium and can produce radioactive waste.

Both green and clean energy are good alternatives to fossil fuels and can help us move towards a more sustainable future. The main takeaway is understanding the energy source.

Green Energy Tariff

When it comes to green energy tariffs, there are two main ways that it is supplied.

  1. Fully renewable supply. This is when providers ensure that all energy is 100% from renewable sources (green energy only).
  2. Hybrid. This is when providers use a mix of renewable energy and fossil fuels to meet supply demand.

Ofgem issues certificates called Renewable Energy Guarantees of Origin (REGO). In simple terms, this confirms that the energy comes from renewable sources.

One thing worth understanding: the electricity arriving at your building is physically the same whatever tariff you're on. Everyone draws from the same grid. What a green tariff changes is what gets paid for. When you buy a genuinely green tariff, your money supports renewable generation and increases demand for it, which is what shifts the grid's overall mix over time.

That's also why it pays to look closely at how a supplier backs its green claims. Some suppliers generate renewable energy themselves or buy it directly from wind and solar farms. Others simply buy REGO certificates separately from the electricity, which is legal, but a weaker form of green. If your sustainability claims matter to your customers, ask the question before you sign.

Why should businesses switch to green contracts?

There are many benefits for businesses to switch from a brown energy contract to a green one. It shows your business is aware of the social climate and supports the UK’s goal of reaching net zero by 2050.

Appeal to Environmentally Friendly Customers

Using green energy can attract customers who look for eco-friendly businesses. Showing your green initiatives lets people see your values and connects you with like-minded customers.

Cut your reported emissions.

Electricity is Scope 2 in carbon reporting terms, and a renewable contract is one of the quickest ways to reduce it. If your business reports under schemes like SECR, or your customers ask for your carbon footprint, a green tariff makes a measurable difference.

Stay ahead of regulation.

Switching to green energy keeps your business in line with the direction of government policy on carbon. Regulations tighten over time, and businesses already on renewable supply have less catching up to do. Government incentives for renewable and low-carbon investment can also save money while helping the environment.

Does green energy cost more?

Less than you'd think, and sometimes nothing at all. As renewable generation has grown, the premium for green tariffs has shrunk, and in some market conditions green contracts price level with standard ones. The gap depends on your consumption, your region, and timing. It's always worth quoting both and comparing, rather than assuming green means expensive.

How to switch to a green contract

Switching to green energy is simpler than most businesses expect. There's no equipment to install and no interruption to your supply. The electricity keeps flowing exactly as before; what changes is the contract behind it.

The process looks like this. First, check your current contract end date and notice period, since leaving a fixed contract early usually triggers exit fees. Then gather a recent bill, which gives any broker or supplier your consumption data and meter details. From there, quotes can be compared across suppliers, both standard and renewable, so you can see the real cost of going green rather than guessing. Once you've chosen, the new supplier handles the switch, and your role is little more than a signature and a meter reading on the day.

For most businesses though, a well-chosen green contract is the practical first step, and it can be done at your next renewal without any disruption at all.

Need help choosing the right supplier?

We provide bespoke energy contracts tailored to your needs, whether it's brown, clean, or green. As a B Corp organisation, we always encourage our customers to choose the greener option if possible. For a quick quote, fill in the box below and we’ll be in touch with you soon.