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Green Energy Certificates for Businesses

Introduction

With the UK Net Zero targets on the horizon, adopting greater sustainability efforts is becoming increasingly important for businesses across the country. 

A great way for your business to go green is by choosing green energy backed by official certification. Green energy certificates not only help reduce your carbon footprint but also demonstrate your company’s commitment to environmental responsibility. In this blog, we’ll break down what green energy certificates are, how they work, and why they matter for your business.  

green energy certificates for businesses

What are Green Energy Certificates?

Green energy certificates, also known as Renewable Energy Certificates (REC), are official proof that electricity has been generated from renewable sources such as wind, solar, or hydroelectric. 

When an energy generator produces green electricity, they are issued with certificates from an official body to prove the source of the energy. These certificates can then be purchased by suppliers or businesses to demonstrate that the electricity they supply or consume comes from renewable sources. 

Even though you can’t control exactly where your electricity comes from, green energy certificates prove that the same amount of renewable energy has been added to the grid. It’s an easy and reliable way to support clean energy and lower your carbon footprint without costly investments or changing how you get your power. 

Why is Sustainability in Business Important?

In the current climate, sustainability is one of the main focuses for many businesses, regardless of their size or sector. There are a number of benefits to prioritising green practices in your business: 

  • Environmental impact – sustainability efforts are a sure-fire way to reduce your business’s carbon footprint, minimising your impact on the planet. 
  • Regulatory compliance – due to nationwide efforts to combat climate change, businesses are increasingly expected to adhere to certain environmental regulations. 
  • Brand image and reputation – Consumers are also more conscious of their buying habits and the businesses they support, with growing numbers preferring to give their custom to businesses that share their sustainability values. Therefore, showing your commitment to the environment can help boost your appeal to both new and existing customers.   
  • Investor appeal – with shifting attitudes towards sustainability, going green is a vital part of futureproofing and making your business more attractive to investors. 
green energy certification

What are the Different Types of Green Energy Certificates?

In the UK, there are three main types of green energy certificates that businesses could buy as part of their energy contract: 

Renewable Energy Guarantees of Origin (REGOs) 

A REGO certificate is a green energy certificate that guarantees that electricity has been generated from renewable sources. This helps ensure transparency and accountability in the energy market, so consumers can make informed decisions about how they power their businesses. 

For every megawatt-hour (MWh) of renewable energy produced, Ofgem will issue one REGO certificate. This can then be used by suppliers to demonstrate to their customers and regulators that a certain portion of their electricity comes from renewable sources. 

REGO certificates cover a range of renewable generation types, including Wind, Solar, and Hydro (collectively known as WSH), as well as Biomass. WSH sources are widely regarded as the cleanest forms of renewable energy. They have minimal impact on the environment when generating electricity and, importantly, they do not become depleted with use, as nature constantly replenishes them, allowing us to harness their power indefinitely without exhausting natural resources. 

Biomass, on the other hand, refers to organic matter of plant or animal origin that is used to produce energy. While it is a renewable source and can help reduce reliance on fossil fuels, it does still release some carbon dioxide when used, making it slightly less clean than WSH. However, biomass remains an important part of the renewable energy mix, especially when sourced sustainably. 

In recent years, the cost of REGOs has fallen significantly, making them more accessible than ever. This presents a great opportunity for businesses to go green without incurring high costs. By investing in renewable energy now, companies can not only reduce their carbon footprint but also align with sustainability goals in a more cost-effective way. 

Renewable Gas Guarantee of Origins (RGGOs)  

In addition to REGOs, there are also green energy certificates exclusively for natural gas, called Renewable Gas Guarantee of Origins (RGGOs). These certificates prove that gas has been produced from renewable sources, such as biomethane, green hydrogen, and synthetic natural gas. They are administered by the Green Gas Certification Scheme (GGCS), with the aim of allowing consumers to prove that their gas is from renewable sources.  

green energy certificates for businesses

Carbon Offset Certification  

Carbon offset certifications are official verifications that a carbon offset project meets specific standards for reducing or removing greenhouse gas emissions. These certifications, issued by independent standards like Verra’s Verified Carbon Standard (VCS) or the Gold Standard, work to ensure the credibility, transparency, and effectiveness of carbon offsets.   

Carbon offsets are credits that represent the reduction or removal of 1 metric ton of CO₂ (or equivalent) from the atmosphere, usually through projects like renewable energy (e.g. wind, solar), reforestation, methane capture from landfills and energy efficiency improvements.  

For businesses looking to support credible climate action, certified carbon offsets offer a trustworthy way to compensate for emissions while contributing to overall sustainability goals.  

At Yü Energy, we currently hold credits for two certified carbon offset projects for 2025. These include the GS707 Landfill Gas Extraction and Electricity Generation Project in Istanbul, Turkey, certified under the Gold Standard, and the VCS-2026 Allain Duhangan Hydroelectric Project (ADHP) in India, certified under Verra’s VCS. These projects support emission reductions through landfill methane capture and renewable hydroelectric power generation. 

Power Purchase Agreements (PPAs)
Some businesses may want to take their green energy initiatives a step further with Power Purchase Agreements (PPAs). These are fixed long-term renewable energy contracts, where a customer agrees to buy a specified amount of energy at a set price over a defined period. The pricing typically includes a blend of wholesale market rates and the cost of green certificates (like REGOs), and the structure can be tailored to match the length of the agreement.  

One key advantage of PPAs is that they can be directly linked to a specific renewable generator such as a wind or solar farm, so both the energy and the certificates originate from the same source. This allows businesses to clearly demonstrate their long-term commitment to supporting the energy transition and achieving net-zero goals.  

Unlike green tariffs, where REGO certificates are provided after the energy has been produced, PPAs embed this commitment directly into the contract from the start.  

What are the Benefits of Green Energy Certificates for Businesses?

For businesses, taking advantage of green energy certificates is a low-cost way to meet sustainability goals, that doesn’t require the same up-front investment that installing renewable energy infrastructure does. 

This approach enables businesses to reduce their carbon footprint and meet their sustainability commitments. It also provides a credible way to make green claims in marketing and reporting. 

green energy certificates for businesses

How Can I Avoid Greenwashing?

Greenwashing is the act of using misleading techniques to portray a business or product as ‘greener’ or more sustainable than it really is. This might involve exaggerating or fabricating claims, which can lead consumers to unknowingly support brands that aren’t really sustainable.  

To avoid falling into this trap, it’s important to back up any environmental claims with credible certifications from recognised organisations. Be wary of vague buzzwords like “eco-friendly,” “natural,” or “green” if they aren’t supported by concrete details or evidence, and when buying green energy, be sure to investigate where the green energy is actually coming from. By purchasing energy backed up by green energy certificates, you can guarantee that you’re powering your business sustainably.  

At Yü Energy, all of our green energy plans use renewable energy from officially accredited sources, so you know exactly where your energy comes from and can make more informed choices. 

Embrace the Power of Green Energy

If you’re ready to step up your sustainability and power your business with clean, green renewable energy, Yü Energy can help.  

We offer tailored plans to suit businesses of all sizes and sectors, using 100% renewable energy and carbon neutral gas. Get your free online quote and get started on your sustainability journey today. 

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