The number of green energy tariffs available to UK households has fallen sharply, as consumers opt for affordability over sustainability amid the ongoing cost of living crisis.
According to data from uSwitch and energy consultancy Cornwall Insight, green energy deals—once making up 85% of the market in 2022—now account for just 18% of the tariffs listed on price comparison websites.
The decline marks a significant shift in consumer behaviour since Russia’s invasion of Ukraine in 2022, which triggered a global energy shock and pushed UK household gas and electricity bills to record highs.
Green tariffs typically carry a premium due to their use of renewable energy sources or associated green certifications. However, with inflation and energy insecurity biting, many households have abandoned green tariffs in favour of cheaper alternatives.
“Green credentials aren’t a higher priority than cost,” said William Mann-Belotti, analyst at Cornwall Insight. “Amid a cost of living crisis, it becomes difficult to sell pure green tariffs at a premium.”
Cornwall Insight found that the number of dual-fuel green tariffs available to UK consumers has halved in the last year, dropping from 24 in summer 2023 to just 13 last month.
uSwitch data confirms the broader trend: green deals—once dominant on price comparison sites—have become a niche option, representing less than one-fifth of all available tariffs this year.
The fall in green tariffs is a clear response to shifting customer priorities. Energy suppliers have pulled back premium-priced renewable offerings as households have shown stronger price sensitivity during a prolonged period of economic uncertainty.
“Consumer choice plays a strong role in what’s available in the market,” said Mann-Belotti. “When cost concerns take over, suppliers reduce the green options on offer.”
He added that many consumers are still exploring other ways to reduce their carbon footprint, including a rise in domestic solar panel installations.
Despite the reduction in the number of green tariffs, the quality of remaining deals has improved, according to uSwitch.
The price comparison service grades each green tariff to identify which ones genuinely support renewable generation—versus those that rely on purchasing renewable energy certificates (RECs), a practice often criticised as “greenwashing”.
In 2021, fewer than 15% of green tariffs were rated gold or silver by uSwitch. By 2023, 9 out of 10 green deals received top-tier ratings, with only one rated bronze.
This reflects a market shift away from tokenistic environmental claims, with suppliers increasingly choosing to source energy directly from renewable projects, or tie pricing to real-time renewable availability—encouraging consumers to use power when it’s cleanest.
While the short-term outlook suggests continued pressure on green tariffs due to economic constraints, industry experts say policy incentives and falling renewable costs could help restore their popularity.
In the meantime, providers looking to support sustainability will need to find creative ways to balance green credentials with cost-conscious customer expectations.
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Green energy tariffs fall to five-year low as UK households prioritise cost
