What you need to know about renewable energy certificates

If you’re a business buying “green” energy, you’ve probably come across renewable energy certificates, or REGOs. But how green is the power behind the paperwork?

REGOs (Renewable Energy Guarantees of Origin) were introduced in 2001 to help prove that electricity came from renewable sources. The idea was simple: support the renewable transition by giving generators more revenue while helping businesses meet their sustainability credentials.

But fast forward to today, and these certificates don’t always tell the full story.

Suppliers can power your business with fossil fuels and still claim it’s 100% renewable, just by purchasing certificates at the last minute. Meanwhile, the actual generators working hard to create clean energy may not see much of that money at all.

Here’s everything you need to know about REGOs – and what to consider before relying on certificates alone to power your business sustainably. 

What is a REGO?

A REGO is a certificate issued by Ofgem for every megawatt hour (MWh) of renewable electricity produced in the UK. In theory, when a business buys enough REGOs from its supplier, it can claim its electricity is "100% renewable."

But here’s where it gets tricky. REGOs can be bought and sold separately from the actual electricity.

That means a utility can buy power from fossil fuels all year long, then purchase REGOs at the last minute to badge it all as green. On paper, that works. In reality? The energy powering your business might not be renewable at all.

So, are REGOs bad?

Not exactly. REGOs have helped raise awareness and direct attention (and some funding) toward renewable energy. The fact that businesses are asking for them at all shows there's a growing demand for clean energy. That’s a good thing.

But the system is flawed.

For one, REGOs are expensive. With many businesses still recovering from the recent energy crisis, there's a growing perception that doing 'good' must come with a higher price tag. But that assumption doesn’t quite hold up – renewable energy is increasingly becoming cheaper to produce than fossil fuels, so why should it cost more? 

There’s also a growing secondary market around certificates, where traders take a cut on every sale, pushing up the cost even further.

But the biggest issue? REGOs blur the line between real renewable energy and energy that only claims to be. You might be supporting clean power or just paying for the label that says you are. It is like paying for an organic sticker without the organic food.

It’s a messy loophole. And at tem., we think it’s time to clean it up.

How is RED different?

At tem, we decided from day one that we'll only ever say our energy is renewable when we can prove it – and we've worked to make that the standard. 

With REGOs, the offset happens at the supplier level. That means a utility can buy fossil fuels, then buy a certificate later to claim it’s renewable, without changing anything about the actual energy that powers your business.

We don’t think that’s good enough.

That’s why we built Renewable Energy Direct™ (RED) – a new kind of energy transaction that shows you exactly what you’re paying for, who generated it, and where your money goes.

Instead of relying on the wholesale market and offsetting with certificates, RED matches energy directly between UK-based renewable generators and the businesses that use it. No middlemen. No added fees. Just real renewable power at a fair price.

As a RED customer, you can be confident that a high proportion of your energy is directly funding individual renewable generators across the UK. Every month, we share a RED™ coverage score with all customers in their insights portal, showing exactly how much of your energy was matched with real renewable generators and what portion of your spend went straight to accelerating the transition to clean energy.

If our algorithm can’t match every unit of your power in real time, your supply falls back to our licensed UK partner, where fossil fuels may be part of the mix. But you’ll always know – and we show you the breakdown clearly in your insights.

This is a level of transparency you don’t get with traditional utilities, where fossil and renewable sources are bundled together and passed off as “green.”

Our goal is to get every business as close as possible to running their entire operations on Renewable Energy Direct - we won’t stop until that’s done. 

Can I still claim 100% renewable energy if I use RED?

With RED, you’re buying energy directly from UK-based renewable generators, which is already a big step beyond what a standard utility can offer today. 

But the phrase '100% renewable energy' doesn't come for free. In the UK, if you want to officially claim your energy is 100% renewable for reporting or compliance purposes, you’ll still need a REGOs certificate to prove it.

Can I buy REGOs through tem.?

If REGOs are right for your business, we can provide them alongside RED. But we’ll always be upfront about what they are, what they mean, and what they cost.

We only buy REGOs directly from renewable generators we already work with, so you know exactly where they’ve come from. And we’ll never sneak them into your contract or inflate your price. They’re completely optional – you choose if and when to include them.

That way, you're not paying extra for something you don’t need, and when you do choose to buy REGOs, you know it’s a decision that aligns with your values and your budget.

Should I buy a REGO certificate?

That’s completely up to you. Some businesses choose REGOs to meet specific reporting or compliance needs. Others prefer to skip the paper claims and focus on running their operations with real, traceable renewable energy.

That’s why we’re here to give you the full picture so you can make the right call for your business. With transparency at the heart of every transaction, you’ll always know exactly what you’re paying for.

The bottom line?

REGOs were built with good intentions, but they’ve become a confusing shortcut in a system that desperately needs more transparency. 

At tem., we want to help businesses move beyond the labels and power real change. If you’re ready to take a closer look at how your energy is sourced and make sure your business is driving the renewable future, we’d love to chat.

Get in touch with us here today.