Why Green Energy Used to Cost More
Historically, green tariffs were more expensive due to several market factors that no longer apply today.
Limited Renewable Generation
In the past, renewable energy sources were less developed and couldn't meet large-scale demand, driving up costs.
Higher Production Costs
Early renewable technology was expensive to manufacture and install, with costs passed to consumers.
Fewer Competitors
Limited suppliers offered green options, reducing market competition and keeping prices high.
Important Update for 2026
Those conditions no longer apply in today's energy market.
What Changed in the UK Energy Market?
By 2026, the renewable energy landscape has transformed dramatically, making green energy more accessible and affordable than ever before.
50%+ Renewable Power
Renewable electricity now supplies over half of UK power generation, increasing availability.
Cheapest Generation
Wind and solar are among the cheapest sources of electricity generation today.
Widespread Availability
Most major suppliers now offer green tariffs, increasing market competition.
Green Energy vs Standard Energy: Price Comparison
| Energy Type | Typical Cost in 2026 | Key Features | Savings Potential |
|---|---|---|---|
| Green Electricity | Same Price | 100% renewable, same unit rates & standing charges | No extra cost for renewable |
| Standard Electricity | Standard Price | Mixed generation sources | No price advantage |
| Green Gas | Slight Premium | Carbon offset or biomethane blends | Often offset by electricity savings |
| Standard Gas | Standard Price | Traditional natural gas supply | Base pricing |
Key Finding for 2026
In many postcodes, green electricity costs no more than non-green electricity. The small premium for green gas is often offset by electricity savings when choosing comprehensive green tariffs.
Fixed vs Variable Green Tariffs: Which Saves More?
Fixed Green Tariffs
Often the cheapest option - lock in renewable electricity prices at competitive rates
✅ Frequently priced below the Ofgem price cap
✅ Protection against future price rises
✅ Best for budget planning and long-term savings
Variable Green Tariffs
Typically more expensive - track the energy price cap without price certainty
⚠️ No exit fees but less predictable
⚠️ Usually more expensive long-term
⚠️ Not ideal for maximizing savings
Potential Annual Savings
Many households switching to fixed green tariffs save money compared to standard variable tariffs, particularly when moving from price-capped options to competitively priced green deals.
Compare Your Green Energy Options
Find out exactly how much green energy could cost for your home. Compare prices, tariffs, and potential savings in just a few minutes.