Frequently Asked Questions About Renewable Energy Contracts
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What is the difference between a green tariff and a PPA?
A green tariff is a standard supply contract where your electricity is matched with renewable generation using certificates such as REGOs, usually on one to three year terms. It is quick to implement and works well across most portfolios.
A Power Purchase Agreement (PPA) is a longer term contract where you buy power directly from a specific renewable generator or project, often for ten years or more. PPAs can offer stronger price visibility and clearer additionality, but they require more detailed commercial and risk assessment.
Inteb helps you compare both routes against portfolio needs, contract lengths, risk profile and internal governance.
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Do renewable energy contracts always cost more?
Not always. In some periods renewable tariffs have been priced at a premium, but this is not automatic. Well timed green contracts can be competitive with conventional supply, and long term PPAs can sometimes be priced below standard wholesale benchmarks.
The cost difference depends on:
Market conditions at the time you contract
Contract structure and length
How much volume you commit
Whether you are buying from an existing project or enabling a new one
Inteb uses market intelligence and procurement expertise to help you avoid paying a green premium where it is not justified.
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Will a renewable contract reduce my Scope 2 emissions?
Yes, provided certificates are handled correctly and you follow recognised reporting standards. Renewable contracts supported by REGOs or equivalent guarantees of origin allow you to:
Report lower market based Scope 2 emissions
Demonstrate that your electricity is matched with renewable generation
For larger consumers likely to be affected by future Scope 2 reforms, we also consider how and when to move towards time matched certificates so that your contracts remain compliant and credible as reporting rules evolve.
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Is a PPA suitable for every business?
No. PPAs are most suitable for organisations that have:
Significant and relatively stable electricity demand
A long term property or operational footprint
Appetite for longer term contracts
Governance processes for managing risk over many years
Smaller or more dynamic organisations often benefit more from high quality green tariffs in the first stage of their renewable journey. Inteb helps determine whether a PPA is proportionate or whether a stepped approach makes more sense.
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How long should I commit to a renewable energy contract?
There is no single right answer. It depends on:
Overall procurement strategy
Lease and occupation profiles
Risk appetite and budget requirements
Contract type, such as tariff versus PPA
Many clients choose one to three year terms for green tariffs and longer terms for PPAs, sometimes ten to fifteen years. We help you balance price visibility against flexibility, taking into account breakpoints, portfolio changes and investment plans.
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Can I pass renewable energy costs through to tenants?
In most commercial leases, energy costs, including renewable tariffs, can be recovered through service charges or recharging where this is allowed under lease terms.
Key considerations include:
Transparency of pricing and certificates
Fair allocation of costs between tenants
Communication of benefits, such as reduced carbon footprint
We regularly work with landlords, managing agents and legal teams to ensure that renewable energy structures align with lease wording, service charge rules and tenant expectations.
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How do renewable contracts support my net zero strategy?
Renewable energy contracts help you to:
Reduce market based Scope 2 emissions
Align your portfolio with grid decarbonisation
Demonstrate tangible progress in ESG reporting
Underpin EPC and net zero roadmaps with robust data
They are one key pillar alongside energy efficiency, demand reduction, on site generation and selective offsetting. Inteb ensures your contracts sit within a wider, credible pathway instead of being a standalone gesture.
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What are REGOs and why do they matter?
Renewable Energy Guarantees of Origin (REGOs) are certificates that prove a given quantity of electricity has been generated from renewable sources. They:
Provide traceability for green supply
Are used in carbon and ESG reporting
Support claims about renewable content
We review supplier approaches to REGOs, including origin, age and allocation, so that your reporting and marketing claims are backed by evidence and remain robust as scrutiny increases.
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What are time matched certificates and why are they important?
Time matched certificates are granular guarantees that link your electricity consumption in a specific period, for example each hour, to renewable generation within the same period. They are a key element of proposed Scope 2 reforms for larger users and help ensure that reported emissions better reflect when clean power is actually generated.
Inteb tracks product development in this space and can help you:
Understand which parts of your portfolio may need time matched solutions
Identify suppliers and PPA structures that can provide time stamped certificates
Plan a phased transition from annual REGO matching to time matched reporting where required
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What risks are involved with renewable energy contracts?
Key risks may include:
Price risk if markets move significantly after you contract
Volume risk if your consumption differs from expected levels
Counterparty risk with the supplier or generator
Policy and regulatory change over long contract terms
Inteb helps you understand and manage these through contract structure, diversification, timing and ongoing review, so that benefits outweigh any additional complexity.