There is unprecedented interest in renewable electricity in the UK. From investors enquiring about sustainability reports to customers seeking out brands that show visible commitments to the environment, businesses are increasingly being asked to show that their energy comes from as clean a source as possible. But how do you prove that the electricity powering your business came from renewable resources like wind, solar or hydro?

Enter REGOs – Renewable Energy Guarantees of Origin. REGOs are certificates, created and managed by Ofgem, and are the cornerstone of the UK renewable energy tracking system. Unfortunately, many businesses simply do not know they exist or, even worse, they don’t fully understand what they actually demonstrate. In this blog, we will define REGOs, consider why they are important, and discuss how your business can use them to support both sustainability targets and stakeholder legitimacy. For many companies, understanding REGOs UK is now a vital part of their energy strategy.

What Are REGOs?

Put simply, REGOs are a certificate issued by Ofgem which evidences that one megawatt-hour (MWh) of electricity was generated from renewable energy sources. A REGO certificate is issued for each unit of renewable energy sold in the UK, and then it can be either sold or allocated to energy suppliers.

The intention with the REGO scheme is to allow energy suppliers to demonstrate the percentage of their electricity mix that is renewable. If for example, an energy supplier states it has a “100% renewable electricity tariff”, the supplier would have to have legal ownership of the REGOs equivalent to the electricity they sold.

In summary: REGO certificates explained — they do not affect the electricity entering your property, but they do provide proof of where it came from. They purely represent a transparency tool that sits between renewable energy generation and end-user consumption.

How REGOs Operate in Practice
Let’s unpack the lifecycle of a REGO:

1. Generation – A wind farm, solar array, or hydroelectric plant generates electricity. Ofgem issues a REGO certificate for every MWh generated.
2. Tracking – These certificates are recorded in a single central registry.
3. Supplier Allocation – Energy suppliers buy or are allocated REGOs to align with the amount of renewable electricity they claim to sell.
4. Customer Communication – Then supplier communicates details of REGOs alongside percentage of renewable element of fuel mix that often features on tariffs, energy statements etc.

This means if you are on a “100% renewable tariff”, your supplier has supported this claim, with the total volume of REGOs.

Why REGOs are Important for Businesses

1. Demonstrating Your Green Credentials
   In today’s market, just saying that your business is “green” no longer cuts it. Customers, investors, and regulators are looking for proof. REGOs provide a verifiable link between the energy supplier’s claim and associated renewable generation.
2. Compliance and Reporting
   With ESG (Environmental, Social and Governance) reporting a common expectation, businesses are obliged to demonstrate the source of their energy. REGOs provide the most straightforward way to demonstrate alignment with sustainability targets, ISO certifications or requirements of mandatory disclosures such as SECR (Streamlined Energy and Carbon Reporting).
3. Reputation and Customer Confidence
   Using a REGO-backed tariff means avoiding any greenwashing accusations. Instead of general sustainability pledges, you can refer to a certification framework recognised by Ofgem for backing. It increases trust from environmentally conscious customers and enhances brand reputation.
4. Competitive Advantage
   Often needing to attract investment, bid for tenders, or enter partnerships, there is often a need to evidence renewable energy consumption. REGO benefits for businesses include providing a competitive advantage in demonstrating green credentials.

Criticisms and Limitations of REGOs

While REGOs are beneficial, they are still controversial and understanding their limitations is important.

1. They Don’t Guarantee Physical Supply
   REGOs certify generation but not delivery, meaning the electrons that are powering your office may not have come from renewable projects at all. It’s a guarantee of contractual agreement not a guarantee of physical supply.
2. Concerns Over Greenwashing
   Some critics have argued that REGOs are cheap and easy to come by and therefore suppliers can sell “green tariffs” without supporting new renewable projects. In other words, a supplier purchasing REGOs doesn’t mean they will fund a new wind or solar capacity project. Discussions of REGO prices drop UK often highlight this affordability challenge.
3. Double Counting Risks
   Businesses may unknowingly double-count their renewable energy use if they are not fully aware of REGOs and how they work. It is incumbent on businesses to be transparent and report accurately otherwise they may lead to the widespread impression of renewable energy use that is misconstrued.

REGOs in the Wider Energy Market

Although REGOs are criticized, they are an essential part of the UK and Europe’s renewable energy scheme and the equivalent internationally, and it aligns with other EU schemes and international schemes with Guarantees of Origin (GoOs) that have similar functions and purposes in regard to energy output across Europe.

For business, REGOs are above and beyond a compliance mechanism, they are part of a worldwide move towards accountable, traceable and sustainable energy use. In fact, tracking REGO price trends 2025 is becoming increasingly relevant as businesses plan long-term strategies.

How Organizations Can Take Advantage Of REGOs

1. Use the Right Supplier
   Not all suppliers are the same when it comes to REGOs. Some suppliers are actively putting money into renewable projects and some just purchase REGOs through the open market. Working with the right supplier makes sure your renewable claims aren’t just legally valid but also sit on a higher ethical standard too.
2. Use REGOs In Your Sustainability Reporting
   If you are communicating your ESG reporting, REGOs provide the required evidence or supporting documentation for renewable energy claims. These can be used in annual reports, CSR statements and sustainability disclosures.
3. Use REGOs Strategically
   REGOs should be regarded as an element of an overall energy strategy, not a single tool. When using REGO-backed tariffs, pair these with energy efficiency improvements, onsite renewable generation, or demand-side management, and you will have a strong and more credible sustainability story. Monitoring REGO price trends will also allow you to align procurement with cost-efficiency and transparency.
4. Work With an Energy Consultancy
   The energy market—tariffs, contracts, compliance and certificates—can quickly get complicated for business owners. That’s where specialist consultants like E for Energy can help.

How E for Energy Facilitates Businesses Using REGOs?

At E for Energy we appreciate that certificates and contracts can sound like unusual paperwork. Our aim is to please. We:
• Analyse your energy contracts to provide audit checks against REGO renewable energy claims made by your supplier.
• Identify the best energy deals available using comparisons between suppliers, making genuine renewable investment in their products compared with those purchasing REGOs.
• Support you with your ESG reporting obligations through effective energy procurement representative of the sustainability frameworks you need to comply with.
• Provide market analysis to keep you aware of regulatory changes and developments in renewables.

When you work with us, your organisation is not only buying REGO, it is embedding REGOs into a recognised, affordable, and future-proof energy strategy.

Conclusion

REGOs may not be the perfect answer, but they are a key part of demonstrating renewable energy use in the UK. REGOs bring a level of transparency, credibility and compliance to businesses in a world continuing to move towards sustainability.

In addition, REGOs should not be considered in isolation; you need to think about REGOs in the context of an energy strategy that balances cost, compliance and ‘genuine’ green impact.

At E for Energy, we help businesses like yours manoeuvre through that complexity. We can help you secure REGO backed deals, build a transparent sustainability roadmap and help you ensure that you and your clients are genuinely competitive in an increasingly energy specific business and industry.

Get in touch with E for Energy today, and see how we can help your business reduce costs, increase credibility and help drive towards action-taking on the green agenda.