Why Switching to a Renewable Electricity Tariff Isn’t as Expensive as You Think

As the UK pushes towards net zero, many businesses and households are looking to switch to renewable electricity tariffs. But some are hesitant, thinking “going green” comes with a hefty price tag. The truth is, in 2025, renewable energy is mainstream — and the cost difference between standard and renewable tariffs is often minimal. Here’s why.

1. Most Standard Tariffs Already Include a Lot of Renewable Energy

Over 50% of UK electricity in 2025 is generated from renewable sources, including wind, solar, hydro, and biomass. Standard tariffs automatically include electricity from the national grid, which already has a high renewable share. So, when you switch to a renewable tariff, you’re not buying a niche product — you’re asking your supplier to match your usage with renewable certificates.

2. Renewable Energy Guarantee of Origin (REGO) Certificates Are Affordable

Suppliers use REGO certificates to prove your electricity consumption is matched by renewable generation. These certificates are cheap — often just pennies per household per month. That means upgrading to a 100% renewable tariff often costs only a few pounds extra per year, and sometimes even nothing if the supplier absorbs the cost as part of their branding strategy.

3. Renewable Generation Costs Have Plummeted

Technological advances and large-scale projects have made onshore wind and solar some of the cheapest sources of electricity in the UK. In many cases, new renewable projects produce power more cheaply than gas-fired power stations. Unlike 10–15 years ago, renewable electricity no longer carries a significant cost premium.

4. Renewable Tariffs Are Often a Branding Tool

Suppliers increasingly use “100% renewable electricity” tariffs to attract environmentally conscious customers. Many even make these tariffs their default to support net zero goals. The minimal price uplift is often a strategic move to make going green feel effortless for consumers and businesses alike.

5. Gas Prices Drive Electricity Costs, Not Renewables

The main driver of electricity prices in the UK is gas, which sets the marginal cost of power. This means standard and renewable tariffs both track wholesale market prices. Whether your electricity is branded as “renewable” or not, you’re still affected by gas price trends — making the cost difference between standard and renewable tariffs relatively small.

Final Thoughts

Switching to a renewable electricity tariff is now more accessible than ever. With the UK grid already heavily renewable, cheap REGO certificates, and low-cost generation, upgrading your energy supply is often a simple, cost-effective step towards sustainability. At Flame Energy, we make it easy for businesses to align with net zero goals without paying a premium.