Reduce

Renewable electricity: the change customers ask about first

Switching to renewable electricity is the fastest large cut most suppliers can make and the easiest to prove. The options differ in cost and in how much a customer will credit, so pick with the evidence in mind.

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Why do customers ask about renewable electricity first?

Because for most suppliers it is the single biggest reduction available in a year, it needs no new equipment, and it can be evidenced with a document. Your electricity is your Scope 2, and your Scope 2 sits inside your customer's Scope 3. When you switch, their number falls as soon as they have your figure. Customers with targets know this, which is why "what share of your electricity is renewable" appears in almost every supplier request.

What are my options?

Four routes, from cheapest and quickest to most involved. They can be combined.

Route What it is Cost What a customer will credit
A renewable tariff Your supplier sells you electricity backed by renewable certificates Often the same price as a standard tariff, sometimes slightly more Counted if the supplier provides the certificates and they meet the GHG Protocol's quality criteria; the weakest evidence of the four if they do not
Buying certificates yourself Energy attribute certificates (REGOs in the UK, GOs in the EU, RECs in the US) matched to your consumption A small cost per certificate on top of your normal tariff Counted under the market-based method when the certificates are from your grid region, for the same year, and retired in your name
On-site generation Solar panels on your roof, sometimes a small wind turbine Capital cost, or a power purchase deal where a developer owns the panels and sells you the power Fully counted for the share you generate and use; also cuts your bill
A power purchase agreement (PPA) A long-term contract to buy electricity from a named renewable generator, directly or through your supplier No upfront cost but a multi-year commitment, usually for larger consumers The strongest evidence; counted in full

The GHG Protocol Scope 2 Guidance sets the quality criteria a certificate or contract has to meet to count, and customers' auditors use it. Many countries run their own certificate scheme with a plain explanation: South Korea's K-RE100 sets out five routes to renewable power with a usage certificate, and Türkiye's YEK-G system explains how Turkish certificates work.

Your customer will accept: a renewable tariff or certificates with the certificate numbers, the year, the grid region and your consumption on one page. That is the evidence; the tariff name on its own is not.

How do I prove it?

Four things on one page, kept with your footprint.

  1. Your electricity consumption for the year, in kWh, from the bills.
  2. The instrument: tariff name and supplier, or certificate type and quantity, or the PPA counterparty, or your on-site generation in kWh.
  3. The certificates themselves, or your supplier's fuel-mix disclosure showing they were retired for your account, for the same year and grid region.
  4. Both figures: your Scope 2 on the location-based method (grid average) and on the market-based method (your contract). The GHG Protocol asks for both, and customers increasingly do.

If your supplier cannot give you the certificate details, ask for its fuel-mix disclosure document; if it cannot give you that either, the tariff is marketing and a customer's auditor will treat it that way.

What if I rent my premises?

Ask the landlord for the kWh and whether the building's supply is on a renewable contract; many are. If the landlord will not switch, buying certificates matched to your share of the building's consumption is the route that stays in your control, and on-site generation is usually a lease negotiation rather than a dead end.

Does it cost more?

A renewable tariff often costs about the same as a standard one, and certificates are a small addition to the bill. On-site solar has a capital cost and typically pays back through a lower bill over several years; many suppliers find it the best-returning investment on this list. A PPA fixes your price for years, which can be a saving or a cost depending on the market. The Reduce stage guide on paying for it covers grants and finance for the capital options.

Do this week: find out what your current electricity contract is and when it ends. If it is standard, ask your supplier for a renewable tariff with certificates and the price difference. If it is already renewable, ask for the certificates and the fuel-mix disclosure.

What should I do next?

Heat, efficiency, fleet and logistics covers the reductions that come after electricity. For a ranked plan for your business, ClimateMate builds one free from real-world case studies. If your customer uses DitchCarbon, claim your profile and record your renewable share and the evidence.

Where to get help

  • GHG Protocol Scope 2 Guidance: the rules for what counts, and the quality criteria certificates and contracts must meet. Free, also listed in Japanese.
  • RE100 technical guidance: what counts as a credible renewable electricity claim, from certificates and green tariffs to PPAs. Free, criteria also in Indonesian, Japanese, Korean and Spanish.
  • I-REC world map: check whether I-REC certificates and a local issuer exist in your country, useful where there is no national scheme. Free.
  • Reduce your scope 2 emissions with renewable electricity: a short PSCI talk for suppliers on buying renewable electricity. Free.
  • ClimateMate: a free decarbonisation plan builder, backed by real-world case studies, that ranks electricity against your other options. Free.
  • SME Climate Hub action plan: practical steps, including energy, for small businesses. Free with registration, also in Arabic, Spanish, Swedish, French and Portuguese.

In your country

Local calculators, grants and advice for this guide, where we have them. See all countries →

Canada

  • RETScreen: Natural Resources Canada. Clean-energy and efficiency project analysis software. In English and French. Viewer free; Pro paid.

China

Japan

  • 再エネ100宣言 RE Action (RE Action, 100% renewable pledge for smaller organisations): RE Action Council. Public pledge to reach 100% renewable electricity, with yearly reporting. In Japanese. Fees not stated.
  • 電力調達ガイドブック 2026 (Renewable electricity procurement guidebook 2026): Renewable Energy Institute. Compares PPAs, certificates and green tariffs in Japan. In English and Japanese. Free.

Malaysia

  • Green Electricity Tariff: Tenaga Nasional Berhad. Buy renewable electricity blocks with a certificate. In English. Premium per kWh.

Mexico

Morocco

South Korea

  • K-RE100 (Korean renewable electricity scheme): KEA New and Renewable Energy Center. Five routes to renewable power and a usage certificate. In Korean. Free to join.

Türkiye

  • YEK-G Sistemi (Renewable guarantee of origin system): EPİAŞ. How Turkish renewable electricity certificates work. In Turkish and English. Info free; certificates paid.

UAE

  • Shams Dubai: FAQs on Solar PV: DEWA, Dubai. Costs, net billing and approvals for business rooftop solar. In English. Free.
  • D33 Renewable Energy Certificate (Dubai I-REC allocation): DEWA, Dubai. How eligible firms bid for I-RECs. Arabic: /ar-AE/consumer/solar-community/d33-renewable-energy-certificate. In English and Arabic. Info free; certificates paid.

US

Europe (regional)

Looking for another country? See free help by country.

Common questions

Why do customers ask suppliers about renewable electricity?

It is usually the biggest cut a supplier can make in a year, needs no new equipment, and can be proven with a document. Your Scope 2 sits inside your customer's Scope 3.

What are the options for a small business to go renewable?

A renewable tariff, buying energy attribute certificates yourself, on-site solar, or a power purchase agreement. They can be combined and differ in cost and in how strongly a customer credits them.

How do I prove my electricity is renewable to a customer?

One page with your kWh for the year, the tariff or certificate details, the certificates or your supplier's fuel-mix disclosure for the same year and grid region, and your Scope 2 on both the location-based and market-based methods.

Does renewable electricity cost more for a business?

A renewable tariff is often the same price; certificates add a small amount; on-site solar has a capital cost that typically pays back through lower bills; a PPA fixes your price for years.

Can I switch to renewable electricity if I rent my premises?

Ask the landlord for the kWh and the contract. If they will not switch, buy certificates matched to your share of consumption, or negotiate on-site generation into the lease.

Get help

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