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How to find the best and cheapest green energy suppliers

Energy supply is the sector responsible for the second highest level of greenhouse gas emissions in the UK, just behind transport. Making sure that supply is made up of renewable energy is therefore vital if we want to tackle climate change.

Choosing a green energy supplier to provide gas and electricity to your home is one way you can contribute to this process. In this guide we’ll take you through exactly how to do so, help you work out which supplier might be a good fit, and offer some words of caution about ‘greenwashing’.

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In This Guide

What is green energy?

Green energy, or renewable energy, refers to electricity generated using renewable sources. Solar power, wind power, and hydropower are key examples. Devices (solar panels, onshore or offshore wind turbines, or hydroelectric dams) harness energy produced through natural processes and therefore don’t rely on finite resources like coal, oil or gas. Furthermore, since there is no fuel being burned, there are no harmful emissions that come from generating power this way.

Some energy plants generate electricity by burning biomass (organic materials and waste). Biomass is considered renewable, but not necessarily totally green due to the emissions produced when the fuel is burned.

For more, check out our guide: what is green energy?

How do green energy tariffs work?

To explain how green energy tariffs work, it’s helpful to go back and explain how the national grid works more generally.

Fuel mixes and the national grid

We all get our electricity from the same pot – the grid – regardless of which supplier we pay our money to. The power in the grid is generated from a variety of sources – renewable and non-renewable – that make up its fuel mix. That means that strictly speaking, everyone’s electricity is just a green as the next person’s. So what’s the point of choosing a green supplier then?

Different suppliers put energy into the grid (either from generating facilities they own, or by buying it from independent generators) at different rates and from different sources. A green energy supplier is one that only (or mostly) puts energy generated from renewable sources into the grid. In addition to the straightforwardly green suppliers, some major firms like British Gas and E.on have set up dedicated green tariff subsidiaries (British Gas Evolve, and E.on Next respectively). Both of these offer tariffs based on a wholly renewable fuel mix.

Does green gas exist?

The above is all well and good when we’re thinking about green electricity. But a lot of UK households still rely on natural gas to cook or heat their homes. Since gas itself typically isn’t renewable, green energy companies will typically fund carbon offsetting programs to counteract the harmful emissions from the gas they sell and make it carbon neutral.

Green gas (or renewable gas) does exist – biomethane is produced though organic waste like grass cuttings – but for now it only accounts for a minute portion of the UK’s gas supply.

Who are the UK’s best green energy suppliers?

There are 22 energy suppliers in the UK certified as having a fuel mix that relies 100% on renewable sources. They are:

  • Bristol Energy
  • Bulb
  • Economy 7 Energy
  • Ecotricity
  • Foxglove Energy
  • Good Energy
  • Goto Energy
  • Green
  • Green Energy UK
  • Green Star Energy
  • HUB energy (Gulf Gas & Power)
  • Igloo Energy
  • iSupplyEnergy
  • London Energy
  • Octopus Energy
  • Outfox the Market
  • Pure Planet
  • Shell Energy
  • So Energy
  • Symbio
  • Tonik Energy
  • Yorkshire Energy

Deciding which one is best for you will depend on a few things. First, the price. Price will vary between suppliers, and each supplier will vary their prices in different areas of the country. Enter your postcode in our comparison box to find out what’s available in your area and at what price.

Customer service is another important factor that’s important to consider. Check out our guide on the best and worst energy suppliers this year ranked with customer service as a factor.

How green are the UK’s biggest energy suppliers?

More and more suppliers are improving their fuel mixes with the aim of become mostly or wholly green. But among the top suppliers by market share, only Bulb, Octopus, and Shell Energy have hit 100% renewable certification. Nevertheless, some other big names are catching up.

Here’s the fuel mix for the 13 largest suppliers by market share, along with the UK average:

Source: electricityinfo.org

REGOs and greenwashing: why ‘green suppliers’ aren’t always green

In order to certify that the energy a supplier has bought or generated and provided to the grid is renewable, Ofgem runs the Renewable Guarantee of Origin (REGO) scheme. Generators receive REGO certificates for the renewable electricity they produce, and the supplier that buys the energy also buys the certificates (equivalent to the amount of electricity produced). The certificates are presented to Ofgem at the end of the year and by comparing their value against the total amount of energy supplied, a renewable certification is rewarded. If the numbers are equal, the supplier classified as 100% renewable.

Suppliers can also buy REGO certificates on secondary markets, however, and certify themselves as renewable even if the energy they supplied to the grid was anything but. In principle this is fine – this is just a carbon offset scheme. But some have raised concerns due to the low price of secondary market REGO certificates effectively allowing large fossil fuel-reliant firms to ‘greenwash’ their supply on the cheap.

Is green energy affordable?

Green energy deals are no more or less expensive than standard energy deals, on the whole. On the wrong tariff from a legacy supplier with a fossil fuel-heavy fuel mix, your energy bill could be significantly higher than on the right tariff from a wholly renewable firm. And vice versa.

Generally speaking, it’s best to go for a fixed rate deal if price is your primary concern. However some firms, like Bulb, only offer a single, variable tariff that is nevertheless competitively priced.

You can offset the cost of your green energy tariff by installing a renewable energy source at home. Adding solar panels to your roof, for example, can allow you to generate electricity that you use at home. If you generate enough, you can even sell some back to the grid. Installing solar panels isn’t cheap, but if you’re in it for the long haul you’ll make the money back. You can save up to £330 a year with a home solar PV system, according to the Energy Saving Trust.

How to get the best green energy tariff

Finding the right green energy deal is simple. Enter your postcode in the energy comparison box at the top of this page, followed by some basic details about your current supplier(s). You’ll be shown a list of available deals in your area – just keep an eye out for any of the green suppliers listed above and select the tariff that appeals to you the most.

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