What are renewable energy certificates and REGOs for small businesses?

If you're a small business owner looking to cut your carbon footprint, keep energy costs in check, or simply do your bit for the planet, renewable energy might already be on your radar. But what if you don’t have the space or budget for solar panels or a wind turbine? That’s where Renewable Energy Guarantees of Origin (REGOs) come in.

In this guide, we’ll explain what REGOs are, how they work, and how they’re different from other renewable energy certificates. We'll also explore why they matter to small businesses and share real-life examples of how switching to renewable energy can make sense, even if you don’t generate your own.

What is a Renewable Energy Guarantee of Origin (REGO)?

A Renewable Energy Guarantee of Origin (REGO) is a certificate that proves electricity has been generated using renewable sources like wind, solar, or hydropower.

For every one megawatt-hour (MWh) of green electricity produced and fed into the UK grid, the generator is issued one REGO certificate. Energy suppliers then buy these certificates to show what proportion of their electricity mix comes from renewables.

If you're on a green energy tariff, chances are that your supplier is using REGOs to back up its claim that your business electricity is “100% renewable”.

What’s the difference between REGOs and ROCs?

The UK has two main types of renewable energy certificates – REGOs and ROCs (Renewables Obligation Certificates). It’s easy to get them confused, so here's a breakdown of how they differ:

Certificate	What it stands for	Purpose	Who uses it
REGO	Renewable Energy Guarantee of Origin	Proves that electricity comes from renewable sources	Used by energy suppliers to support green tariffs
ROC	Renewables Obligation Certificate	Incentivises large-scale renewable generation	Used by energy producers to claim subsidies

REGOs:

• Used mainly for transparency and consumer confidence
• Help suppliers show how "green" their electricity tariffs are
• Issued by Ofgem, the UK’s energy regulator

ROCs:

• Part of a government support scheme for renewable generators
• Enable energy producers to get paid more for the green electricity they produce
• Being phased out as newer schemes like Contracts for Difference (CfDs) take over

So, for small businesses, REGOs are what you need to know about – they help you understand how clean your electricity supply really is.

How do REGOs work?

Here’s how the REGO system works in practice:

1. A renewable energy source (like a wind farm or solar park) generates electricity and feeds it into the grid
2. For every 1 MWh of electricity produced, Ofgem issues one REGO certificate to the generator
3. That REGO can be sold or bundled with the electricity it represents
4. Energy suppliers use REGOs to show what portion of their energy supply comes from renewables
5. When a business or household chooses a green tariff, they’re matched with electricity that is supported by REGOs.

This allows businesses to “buy” renewable energy, even though the energy powering their lights could come from anywhere on the grid.

Why should small businesses care about REGOs?

Even if you’re not ready to generate your own renewable energy, REGOs offer an easy, affordable way to support the UK’s transition to greener electricity. Here’s why they matter:

1. You can reduce your carbon footprint

Electricity accounts for a big chunk of a business’s environmental impact. Choosing a green tariff backed by REGOs is a simple way to reduce your Scope 2 emissions (these are indirect greenhouse gas emissions from the generation of the energy you buy).

2. It shows customers and clients you care

Being environmentally conscious isn’t just good for the planet – it’s good for business. Many customers and clients now prefer to support companies that are taking real steps toward sustainability. A REGO-backed tariff helps you prove that your business is powered by renewable electricity.

3. It helps with future-proofing

More supply chains, partners, and funding bodies are looking at a company’s green credentials. If you're applying for grants, tenders, or contracts, using REGO-backed energy can help tick the sustainability box.

4. It’s a low-effort switch

You don’t need to change your operations or install anything like wind turbines or solar panels. Switching to a supplier that offers 100% renewable electricity backed by REGOs can be done in a matter of minutes.

Is all green energy equal?

Not exactly. All REGO-backed tariffs claim to use 100% renewable electricity, but the quality and impact can vary.

Some suppliers buy REGOs cheaply to label a tariff as "green" without actually sourcing electricity directly from renewable generators. These are sometimes called “REGO-only” or “greenwashed” tariffs.

Others go a step further, buying electricity and REGOs together directly from renewable sources (often called “bundled” tariffs). These typically have a bigger environmental impact and support new green infrastructure.

What to ask your supplier:

• Is your renewable tariff backed by bundled or unbundled REGOs?
• What types of renewable sources do you use (wind, solar, hydro)?
• Are the REGOs from UK-based generation?

How to choose a REGO-backed business energy tariff

If you're ready to switch business energy, here’s what to look out for:

• Tariff type: Make sure it's advertised as “100% renewable” or “green electricity backed by REGOs”.
• Transparency: Some suppliers clearly show how much of their energy comes from which sources (wind, solar, etc.).
• Location of generation: UK-based renewables can have more impact than imported certificates.
• Bundled vs unbundled: Bundled means your supplier is directly supporting renewable generators – a better environmental choice.

You can compare renewable business energy tariffs through comparison services like MoneySuperMarket or Bionic, making it easy to find the best deal and switch in minutes.

Can you buy REGOs directly?

In the UK, REGOs are mostly handled by suppliers – they’re not usually sold directly to small business customers. Instead, your energy supplier purchases them to match your usage if you’re on a green tariff.

However, if you're involved in detailed carbon accounting or sustainability reporting, some third-party services do offer REGO matching or additional offsetting options. This is more common for larger organisations but may be of interest if you're growing fast or need to meet certain reporting standards.

REGOs might sound technical, but they’re actually a simple and powerful way for small businesses to back the UK’s renewable energy transition. You don’t need a wind turbine on your roof to make an impact – switching to a green tariff backed by REGOs is a low-cost, low-effort way to cut your carbon footprint and show your customers that you care about sustainability.

Whether you're running a shop, a restaurant, or an office, supporting green electricity doesn’t have to be complicated. And with energy comparison sites and switching services making the process easier than ever, there’s really no reason not to make the move.