EnergyPlus · May 2026
Cheapest green electricity tariff for UK homes (June 2026)
Since Ofgem's October 2024 green-tariff reforms, suppliers selling a tariff as '100% renewable' must back the claim with REGO certificates and disclose how the green electricity is sourced. That gives UK homes a clearer view of what they're buying — and a tighter comparison between cheap REGO-only tariffs (cheapest, weakest claim) and PPA-backed tariffs (slight premium, stronger additionality). In May 2026 the cheapest 100% renewable fixes sit at the cap to ~3% below cap, several no-exit-fee green fixes are at or just below cap, and Big Six green variants now exist alongside specialist suppliers like Good Energy and Ecotricity.
Editorial information, not financial advice. Prices and policy can change — always confirm against the supplier and Ofgem.
Cheapest green electricity tariff — June 2026 at a glance
In May 2026 the cheapest REGO-only green electricity fixes sit at the April–June 2026 cap to ~3% below cap on typical use, almost matching the cheapest non-green fixes. PPA-backed green tariffs (Good Energy, Ecotricity, Octopus Greener) carry a small premium of 1–4% above the cheapest non-green fix in exchange for direct generator funding. Since Ofgem's October 2024 reforms suppliers must disclose how green claims are backed — REGO-only, REGO + matched PPA, or REGO + matched PPA + carbon-offset gas.
Quick checklist (May 2026):
- Cheapest REGO-only green fixes: cap to ~3% below cap — almost the same price as non-green.
- PPA-backed green fixes: 1–4% premium for direct generator support.
- Ofgem October 2024 reforms enforce disclosure on green claims.
- Green dual-fuel adds carbon-offset gas — usually a few percent above non-green.
- Switching to green takes 5 working days under Faster Switching.
- Last updated
- May 2026
- Reviewed by
- Energy Specialist
- Audience
- UK households & small businesses
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Cheapest green electricity tariff for UK homes in June 2026
A clear, current overview to help you choose with confidence.
What 'green electricity' actually means in 2026
All UK electricity comes from the same shared grid, so 'green' tariffs are about how the supplier matches your usage. REGO certificates prove a matching kWh of renewable electricity was generated somewhere on the grid; PPAs (power purchase agreements) directly fund a generator. Ofgem's October 2024 reforms tightened disclosure rules so suppliers must tell you which mix they use.
REGO-only vs PPA-backed
REGO-only tariffs are usually the cheapest green option — the certificates are inexpensive on their own, so the supplier can sell green at almost the same price as standard. PPA-backed tariffs (Good Energy, Ecotricity, Octopus Greener) commit money to specific generators, with a small premium for that additionality.
Ofgem's October 2024 green tariff reforms
Suppliers selling tariffs as '100% renewable' must publicly disclose the source mix, the PPA percentage, and how unmatched renewable claims are handled. The reforms haven't banned REGO-only tariffs — but they've made the difference between green tiers visible, so consumers can choose with eyes open.
What about gas?
Most 'green' dual-fuel tariffs use carbon-offset natural gas (offsets paid into verified schemes) rather than biomethane (true renewable gas, limited supply). Biomethane-backed gas is available from a handful of specialist suppliers at a higher premium. Offset gas adds typically 1–3% to a dual-fuel green tariff.
Compare like-for-like
Indicative May 2026 view for a typical UK electricity customer comparing green options. Use the form on this page for a personalised comparison.
| What to compare | Typical range (May 2026) | Notes |
|---|---|---|
| Default tariff cap (Apr–Jun 2026) | Reference baseline | Standard variable, no green backing required. |
| Cheapest REGO-only green fix | Cap to ~3% below cap on typical use | 100% renewable claim backed by certificates only. Cheapest green option. |
| PPA-backed green fix (Good Energy, Ecotricity) | 1–4% above cheapest non-green fix | Direct generator funding. Strongest 'additionality' claim. |
| Octopus Greener tariff | At cheapest non-green fix to ~2% above | Mix of REGO + PPA disclosed in supplier reporting. |
| Standard variable green tariff | At cap | Same framework as default, with a green badge. No price saving vs default. |
How to pick the cheapest green UK electricity tariff (June 2026)
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1. Decide your green standard
REGO-only (cheapest, weakest impact), PPA-backed (small premium, direct generator funding), or biomethane (strongest, highest premium).
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2. Find your annual kWh
Use last year's bill or your supplier app — the most recent 12 months of electricity (and gas if dual-fuel).
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3. Check the supplier's post-Oct-2024 disclosure
Suppliers must publish their source mix and PPA percentage. Check this before signing — it's how you tell REGO-only from PPA-backed.
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4. Compare on annual cost
Annual cost = (unit rate × kWh) + (standing charge × 365). Add any premium for green vs non-green.
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5. Run a whole-of-market comparison
Use the form on this page — it surfaces every green tariff for your postcode.
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6. Apply and submit opening reads
Switching takes 5 working days. Submit electricity and gas opening reads on day one.
Common pitfalls to avoid
The most frequent issues we see when households and businesses act on what looks like a good deal.
- Assuming all 'green' tariffs are equally renewable — REGO-only and PPA-backed have very different real impact.
- Paying a green premium without checking the supplier discloses PPA percentage post Oct 2024 reforms.
- Switching to a green variable at-cap and thinking it's cheaper than the default — it's the same price.
- Picking a PPA-backed dual-fuel without checking how the gas side is handled (offset vs biomethane).
- Forgetting that green tariffs follow the same Ofgem cap framework — no special pricing rules.
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Frequently asked questions
What's the cheapest green electricity tariff for UK homes in June 2026?
In May 2026 the cheapest REGO-only green fixes from challenger and Big Six suppliers sit roughly at the April–June 2026 cap to ~3% below cap on typical use — almost the same price as the cheapest non-green fixes. PPA-backed green tariffs cost 1–4% more in exchange for direct generator funding.
Are green electricity tariffs more expensive?
Not significantly. REGO-only green tariffs sit almost at the same price as standard tariffs because the certificates are inexpensive. PPA-backed green tariffs (Good Energy, Ecotricity, Octopus Greener) carry a small premium of 1–4% for direct generator funding.
What's a REGO certificate?
Renewable Energy Guarantees of Origin — Ofgem-issued certificates that prove a matching kWh of renewable electricity was generated somewhere on the UK grid. Suppliers buy and retire REGOs to back '100% renewable' claims. The certificates are cheap, which is why REGO-only tariffs are the cheapest green option.
What's a PPA-backed green tariff?
A power purchase agreement is a direct contract between the supplier and a renewable generator (wind farm, solar park, hydro plant). The supplier funds generation directly, which adds 'additionality' — your money is supporting new renewable capacity. PPA-backed tariffs cost 1–4% more than REGO-only.
What changed with Ofgem's October 2024 green tariff reforms?
Suppliers selling tariffs as '100% renewable' must now publicly disclose source mix, PPA percentage and how unmatched claims are handled. Greenwashing claims without backing data are no longer compliant. The reforms didn't ban REGO-only tariffs but made the difference between green tiers visible.
Is green gas available in June 2026?
Limited supply. Most 'green' dual-fuel tariffs use carbon-offset natural gas (offsets paid into verified schemes). True biomethane gas is sold by a handful of specialists like Green Energy UK and Ecotricity at a higher premium — biomethane production is much smaller than the UK gas demand.
Can I switch to a green tariff if I'm renting?
Yes — as the named bill-payer you have the right to switch supplier, including to a green tariff, unless your tenancy agreement specifies otherwise.
Will switching to a green tariff actually reduce my carbon footprint?
On grid carbon, indirectly — UK grid carbon is shared, so your individual usage isn't physically 'green'. The impact of your switch is the funding signal to renewable generation. REGO-only sends a weak signal (certificates are oversupplied); PPA-backed sends a stronger one.
Trust, methodology and sources
Page governance
- Written by
- EnergyPlus Editorial Team
- Reviewed by
- Energy Specialist
- Last updated
- May 2026
How we keep this page current
We refresh this page each month against the latest Ofgem cap, supplier tariff changes and current scheme guidance. Worked numbers are illustrative; quotes you receive via the comparison form are personalised to your meter and postcode.
Editorial independence: our priority is clarity and like-for-like comparison. Where commercial relationships exist, options are still presented on suitability and the information available at the time.
Reputable UK sources we reference
- Ofgem — green tariffs and renewable claims
- Ofgem — REGO certificates
- Citizens Advice — green energy tariffs
- Energy Saving Trust — renewable energy
If you spot anything that looks out of date (a rule change, a new scheme), please contact EnergyPlus so we can review and update this page.
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