UK industrial and commercial (I&C) organisations have long relied on Renewable Energy Guarantees of Origin (REGOs) to demonstrate renewable energy sourcing, writes Hazel Cockerill, Head of Trading & Renewables, Evolve Energy.
For many, certificates have been the simplest way to evidence progress against Scope 2 emissions and secure green energy for business. However, cracks in that model are becoming harder to ignore.
Are REGOs still fit for modern renewable business energy strategies?
After REGOs reached record highs of around £20 per certificate in late 2023, affordability became a significant concern for large energy users. While prices have since softened, volatility remains evident. For the 2024–25 disclosure year, average REGO prices fell from £2.56 in January to just £0.77 by April. This fluctuation raises a commercial question for Third-Party Intermediaries (TPIs) advising on renewable energy business strategies: is a certificate-only approach stable enough for the long term?
REGOs remain Ofgem-recognised and compliant. One certificate per megawatt-hour provides a clear framework for tracking renewable supply. Yet the annual redemption model creates a structural mismatch. Summer solar output can be retired against winter demand, meaning a portfolio consuming heavily during dark winter evenings may still claim renewable supply backed by generation that occurred months earlier. While compliant, this book-and-claim model increasingly struggles to satisfy investor scrutiny, supply chain due diligence and tightening ESG expectations.
Renewable generation growth is increasing scrutiny on business energy claims
This issue is becoming more visible as Britain’s renewable output accelerates. According to Financial Times analysis of University of Sheffield data, by mid-August 2025 solar had already generated 14.08 TWh – roughly one-third more than at the same point the previous year – with a new half-hour record of 14 GW reached on 8th July 2025, accounting for almost 40% of demand in that settlement period. This growth is positive for decarbonisation, but it also highlights the timing imbalance between renewable generation and certain I&C consumption profiles.
For consultants supporting large portfolios, this creates reputational exposure. Renewable business energy claims must increasingly demonstrate alignment between consumption and generation, not simply certificate volume. Stakeholders are moving from asking, “Do you hold REGOs?” to, “Can you evidence when and where your power was generated?”
Why TPIs must move beyond certificate-only supply
At the same time, policy is reinforcing the long-term shift toward credible renewable investment. The UK Government has extended Contracts for Difference for wind and solar projects from 15 to 20 years and increased administrative strike prices for certain technologies to restore investor confidence following weaker auction rounds. These measures are designed to accelerate renewable build-out, but as generation scales, so too will scrutiny of how that output is linked to end users.
This is where differentiation emerges. Many standard business energy suppliers can provide certificates as part of a supply contract. Fewer can structure arrangements that align renewable generation with consumption on a more granular basis. Half-hourly matching models and asset-level traceability allow renewable business energy to be linked more closely to a company’s actual load shape, strengthening credibility without requiring every business to enter long-term Corporate Power Purchase Agreements (CPPAs).
How traceable renewable business energy creates competitive advantage
For TPIs, the opportunity is strategic. Moving beyond certificate-only supply enhances reputational resilience, supports stronger ESG reporting and provides clients with a more defensible renewable narrative. It also future-proofs procurement decisions. Businesses reviewing business energy contracts today must consider whether their renewable approach will withstand scrutiny five or ten years from now, particularly as investor and supply chain expectations continue to rise.
In a volatile wholesale market, traceability can also play a role in managing long-term business energy costs. Securing access to long-term renewable generation helps lessen the impact on end users from geopolitical events causing bullish movements in the market, particularly when renewable access is structured intelligently across diversified assets rather than tied to a single generation profile.
The future of renewable procurement for UK I&C businesses
I&C businesses that move beyond traditional book-and-claim models can demonstrate not only that they purchased renewable electricity, but that it genuinely reflected how and when they consumed power. In a market where expectations are rising, that level of transparency separates forward-thinking strategies from standard business energy suppliers.
Learn more: https://www.evolve-energy.com/
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