Renewable Energy for Business: A Complete UK Guide

Record who the documents name before treating a contract as yours to change. Copy one electricity bill before describing daytime use. Read the green claims guide before stating that solar has cut the site’s emissions.

Why renewable energy matters for UK businesses

Climate impact

Electricity generation has been the fastest-decarbonising sector of the UK economy. The grid mix increasingly includes wind, solar, and nuclear. A supplier contract does not, by itself, prove the electricity physically used had zero emissions.

Purchased electricity is often a material scope 2 source. A contractual figure, where one is shown, sits beside a location-based figure. It does not replace it where location-based reporting applies.

Commercial drivers

UK renewable energy options compared

Option 1: Green energy tariffs and REGO certificates

How green tariffs work

A green tariff supplies electricity through the grid. The supplier may procure renewable generation and hold or cancel REGOs. REGOs are issued by Ofgem to renewable generators for each megawatt-hour produced. They can be traded with or without the electricity. Their main supplier use is fuel-mix disclosure.

A marketing sentence is not a cancelled certificate. Quantity agreement alone is not an accounting pass. For organisations following the 2015 GHG Protocol Scope 2 Guidance in relevant markets, both a location-based and a market-based total are required, and a market-based figure needs applicable contractual-quality checks. SECR guidance encourages the location-based figure and, if a contractual figure is shown, alongside it. That encouragement is not the same as the Protocol requirement.

This log cannot establish a zero-emissions result. It also cannot say that a qualifying market-based zero factor is universally impossible.

The evidence record

Download both files. Save a copy of the blank row and type into that copy.

• Blank evidence row, tariff-evidence-blank.csv
• Fictional example, tariff-evidence-example.csv

The files are plain CSV. You type every cell. The spreadsheet does not calculate a row and it does not reject a typed status.

volume_coverage records whether certificate megawatt-hours cover consumption megawatt-hours. accounting_qualification stays not_assessed. location_based_required is yes where location-based reporting applies. method_specific_claim is not_established_by_this_log. ccl_on_bill is copied from a bill or left not_checked. The word renewable does not set it to exempt.

Documented estimated consumption is labelled with its basis and an uncertainty note. It is not automatically barred from volume arithmetic. Zero consumption is a defined coverage state. Negative or non-finite quantities are invalid.

What to verify

1. A cancellation or retirement statement that names megawatt-hours, the period and the beneficiary
2. The consumption period and its estimate label
3. Fuel-mix disclosure as the certificate’s primary supplier use
4. Whether any quality checks required by the method you follow have actually been made

Business energy switch renewable: action steps

1. Record who the documents name before treating the contract as yours to change
2. Copy the contract end date and billed kilowatt-hours from documents you hold
3. Ask whether REGOs will be cancelled for your consumption, for which period, and in whose name
4. Keep the location-based figure where that reporting applies
5. Copy the levy line printed on the bill

Limitations

• A tariff does not reduce scope 1 or scope 3
• A certificate can be traded without the electricity
• Do not rank suppliers

Option 2: On-site solar panels

Solar panels business UK: feasibility factors

Prepare documents and questions. Do not state a system size, a yield, a payback or a grant.

The preparation checklist

• Blank solar preparation list, solar-prep-blank.csv
• Fictional example, solar-prep-example.csv

The files are plain CSV. You type every cell. Document and fact rows are different from assessor-question rows. Preparing a question can be complete while the professional answer stays unknown. A document row is unknown when you looked and did not find the paper. Do not mark consent not applicable without a document that states the basis. A roof or building description may include dimensions. Unsourced sizing, yield or payback predictions stay out.

pack_preparation_status is separate from each item’s progress. A partial pack can be shared. Consultation does not have to wait until every technical unknown is resolved. No completed pack establishes suitability.

Ofgem’s Smart Export Guarantee page says eligible solar in Great Britain up to 5 MW can be paid for export by a supplier, at a rate the supplier sets above zero. That is not a grant and not a rate for the checklist. Northern Ireland export arrangements were not checked.

Financial model

Do not use a typical kilowatt-peak, a cost per kilowatt-peak or a payback band. Obtain quotes after the preparation list exists.

Scope 2 reporting

Self-consumed solar can reduce purchased electricity. Exported electricity is a separate meter question. Keep the footprint method on the carbon page.

UK government support

This page does not state a grant amount. Ask a qualified person whether any current scheme applies.

Option 3: Power purchase agreements (PPAs)

What is a power purchase agreement?

A power purchase agreement is a long-term contract to buy electricity from a generator at an agreed price without owning the generation asset. The length is the length written in that contract. This page does not state a typical term.

PPA structures

Who PPAs suit

Larger consumers, multi-site portfolios, and organisations that want a price contract without owning the asset. A contract may need legal or accounting advice. This page does not assess the accounting treatment and does not set a kilowatt-hour threshold.

Considerations

• Legal and negotiation complexity
• Contract length
• How certificates are allocated
• Who the documents name as the contracting party

Option 4: Wind energy for business

On-site wind

On-site wind in the UK is typically limited to rural manufacturing sites, agricultural businesses, and large exposed distribution sites. Small turbines require planning, noise assessment and connection approval. Feasibility depends on local wind resource. No typical size is stated.

Off-site wind via PPA

Most businesses that buy wind electricity do so through off-site contracts rather than on-site turbines.

UK context

The UK has a large offshore wind market. A corporate contract with a UK wind project is not, by itself, a whole-business footprint result.

REGO certificates: what UK businesses need to know

How REGOs work

1. A renewable generator produces 1 MWh of electricity
2. Ofgem issues 1 REGO to the generator
3. The REGO can be traded or sold
4. Cancellation or retirement is what stops the same certificate being counted twice
5. A marketing line is not that cancellation

REGOs and scope 2 reporting

The GHG Protocol Scope 2 Guidance still in effect is the January 2015 edition. A later consultation is not the rule.

• Location-based: a grid-average factor
• Market-based: a contractual instrument that meets the quality checks that guidance requires

Quantity coverage is not those quality checks. Keep both totals where that framework applies.

REGOs vs carbon offsets

REGOs prove renewable generation origin for the certificate scheme. They are not carbon offsets and they do not compensate scope 1 or scope 3. Do not conflate a tariff with carbon offsetting.

Combining renewable energy with efficiency

A certificate does not replace demand reduction.

1. Reduce demand where you have entered figures that support the change
2. Then consider supply contracts or on-site generation
3. Log each period before comparing one month with another

See 15 proven reduction strategies for efficiency work that is outside this page.

Contracting and switching: practical steps

Switching business energy supplier

1. Confirm from documents that you are the party who may switch
2. Note the contract end date
3. Gather bills you already hold
4. Ask about cancellation, period and beneficiary, not only a green label
5. Compare the whole contract, including standing charges
6. Copy the levy line from the bill

Solar installation process

1. Complete the preparation list, including unfinished items you are willing to share
2. Ask a qualified person about structure, shading, connection, export metering and ownership
3. Obtain quotes from installers you choose
4. Register for Smart Export Guarantee only after export metering exists, if you are in Great Britain and the installation is eligible
5. Monitor generation from the meter, not from a typical yield

PPA negotiation

1. Appoint an advisor if you need one
2. Define volume, duration and certificate allocation
3. Take advice on the contract you are considering
4. Record the documents, not a typical premium

Energy storage and flexibility

Battery storage paired with on-site generation can increase self-consumption or provide other site services. Economics are site-specific. No payback band is stated.

Costs, payback, and decision framework

Decision matrix

Cost comparison (indicative)

Do not use a 0 to 5 percent tariff premium or a quantified SEG income. Obtain current quotes.

Greenwashing risks and compliant claims

Avoid these pitfalls:

1. “100% renewable” without a named cancellation, period and beneficiary
2. Claiming the whole business is net zero from a tariff
3. Treating quantity coverage as an accounting pass
4. Marketing green electricity while gas heating is left undescribed

Comply with the CMA Green Claims Code. Be specific about the method and the document.

Landlord vs tenant: who procures renewable energy?

Do not assume the occupier may switch tariff, change heating or use the roof. Record who the documents name before treating a contract as yours to change.

A green-lease clause is recorded only when you have the document. Occupation of the building is not control of the plant.

Half-hourly metering and large consumers

Some sites have half-hourly meters. Those data can support time-of-use review and generation questions. They do not, by themselves, establish a business case.

Renewable energy and scope 2 dual reporting

For organisations following the 2015 GHG Protocol Scope 2 Guidance in relevant markets, report both:

• Location-based method — a grid-average factor applied to consumption
• Market-based method — only from a contractual instrument that meets that guidance’s quality checks

SECR guidance encourages the location-based figure and, if a contractual figure is shown, alongside it. As the UK grid decarbonises, a location-based total can fall without a contract change. That is not a finding about physical electricity at the socket, and it is not a whole-business footprint.

Emerging options: corporate renewable portfolios

Larger organisations may combine a tariff, on-site generation and an off-site contract. Centralise evidence: cancellation references, periods and beneficiary names. Do not add the rows into a claimed zero.

Climate Change Levy and renewable energy

The Climate Change Levy is a tax on UK business energy use. The renewable Climate Change Levy exemption is closed. Renewable levy exemption certificates were only issued for generation before 1 August 2015, with transitional use until 1 April 2018. A current green tariff does not revive that exemption. Copy the levy line printed on the bill.

Worked example: fictional Northgate Studio office

Northgate Studio is the fictional office used on the bill page.

The fictional evidence row stores a 100 percent renewable sentence, no certificate, volume_coverage not_checked, accounting_qualification not_assessed, and method_specific_claim not_established_by_this_log. A second fictional row has 12.00 certificate megawatt-hours against 10.00 consumption megawatt-hours, blank periods and a blank beneficiary. Volume coverage is covers. That is not an accounting pass.

The fictional solar list marks three months of bills as prepared, the roof paper as not started, consent as unknown because no freehold or roof-consent paper was seen, and the assessor questions as written with unknown answers. The pack can be shared. It does not establish that solar is suitable.

Frequently asked questions

What is the easiest way for a UK business to switch to renewable energy?

First record whether a document names you as the party who may change the contract. Then ask about cancellation, period and beneficiary. A green label is not that evidence.

What are REGO certificates?

Renewable Energy Guarantees of Origin — Ofgem-issued certificates for 1 MWh of renewable generation. They can be traded without the electricity. Fuel-mix disclosure is the primary supplier use.

Are solar panels worth it for UK businesses?

This page does not state a typical payback. Prepare the documents and questions, then ask a qualified person.

What is a corporate power purchase agreement?

A long-term contract to buy electricity from a generator at an agreed price. Suitable only after legal review. On-site PPAs avoid owning the asset.

Does a green tariff make my business carbon neutral?

No. It addresses purchased electricity at most, and only for the method you can actually support. See carbon neutral vs net zero.

Can I claim renewable energy in SECR reporting?

SECR guidance encourages a location-based figure. A contractual figure may be shown alongside it. Explicit renewable reporting is not mandatory under the SECR legislation.

Is wind energy viable on-site for my business?

Only on sites with a strong wind resource and adequate land. Most businesses that buy wind electricity do so through off-site contracts.

How does renewable energy affect my net zero strategy?

A contractual electricity figure is one part of scope 2. Net zero still needs the other material scopes. Pair any supply change with demand reduction you can support from entered figures.

Conclusion

Start with the documents you hold. Separate the tariff sentence, the certificate and the emissions method. Prepare solar questions without a size or a grant. Record who the documents name before treating a contract as yours to change.

Sources

• REGO Guidance for Generators, Agents and Suppliers, Ofgem, April 2023.
• Environmental reporting guidelines, including SECR, March 2019.
• Scope 2 Guidance, GHG Protocol, January 2015 edition.
• Climate Change Levy (CCL) exemption, Ofgem. Closed scheme.
• Smart Export Guarantee (SEG) - Generators, Ofgem. Great Britain.
• CMA Green Claims Code.