| How It Works
Green energy has been growing in profile every year, but how is it different to non-renewable energy? And should you care? These questions and more are answered here.
Being green is a good look for any forward-thinking business, and how a company sources its business energy can bring a boost to its eco credentials.
That’s where renewable energy comes in. It’s been on the up for a while now, with Opus, OVO and Octopus being amongst the big names offering green energy tariffs.
But you might be asking yourself ‘is there any point going with a renewable energy supplier?’ and ‘is it much different to a non-renewable supplier?’. Well, what you read below will answer those questions and more.
The big thing that differentiates renewable energy suppliers from the rest of the pack is the source; where and how it gathers its energy. We’re talking about wind, water, the sun, even plants.
Meanwhile, non-renewable energy comes from coal, natural gas, oil, and nuclear energy; finite resources that can’t be replaced once they’re used up.
Nope, quite the opposite. In the main, renewable energy is cheaper than non-renewable energy. The difference can be marginal, but it can be close to £200 over the year.
The table below outlines the unit price and annual cost for both types of energy, along with the price difference.
|
Business Size |
Renewable Electricity Price (p per kwh) |
Non-Renewable Electricity Price (p per kwh) |
Renewable Annual Cost |
Non-Renewable Annual Cost |
Difference of annual cost |
|
Micro business |
31.9p |
31.5p |
£1,790.72 |
£1,838.10 |
2.65% |
|
Small |
31.5p |
31p |
£4,967.77 |
£4,967.65 |
0.00% |
|
Medium |
31.5p |
31.2p |
£8,121.19 |
£8,303.98 |
2.25% |
|
Large |
31.5p |
31p |
£16,104.78 |
£16,147.17 |
0.26% |
|
Very large |
31.5p |
30.3p |
£31,846.92 |
£31,061.44 |
-2.47% |
Updated June 2023. These numbers are indicative of the banding’s top rate, based on a two-year contract, and pull from suppliers across the UK.
Sustainability is a big part of the answer to that question. Coal, oil, and gas will become more and more expensive, so drawing upon a source that is potentially endless like wind and sun means homes and businesses won’t face a day where the lights refuse to switch on.
There are other factors and situations though where switching to a renewable energy supplier makes more sense.
When the time comes to replace your boiler or central heating system, this is a great chance to shift away from a fossil fuel heating system like a gas boiler.
For anyone living in an isolated rural property with no mains electricity, opting for hydro or a mix of wind and solar could be the most reliable off-grid supply.
If you’re concerned about your carbon footprint, switching to a heat pump, a large wind turbine or large solar PV system could be the way to go.
The list of energy suppliers that can switch your business to a renewable energy tariff is always growing and changing. As it stands in 2023, these are the energy suppliers that can help you go renewable:
|
Large suppliers |
Independent suppliers |
So you’re onboard? Excellent. Chances are you’ll want to compare the options first and our free online comparison tool can help you find the best renewable energy deal.
Simply tell us your postcode and a few details and we’ll take it from there.
Related Articles
Find out why solar power is projected to account for 13% of the world's energy supply by 2030. Our research explores public opinion on solar energy.
January 2021
Research has shown that around 60% of people find their energy bills confusing. Here is your electricity bill is broken down.
March 2021