What are REGOs and how do they benefit commercial solar installations?
- Rosie Robinson-Jones
- Nov 18
- 3 min read
As more UK businesses join the renewable transition, it is important to understand the additional value streams that enhance the return on solar installations. One such opportunity is through REGOs - Renewable Energy Guarantees of Origin.
These certificates are recognised as formal green energy tokens for your system’s generation and carry both commercial and reputational value.
What Are REGOs?
The REGO scheme is a UK government-backed certification led by Ofgem, the energy regulator responsible for overseeing and maintaining fairness and transparency in the UK energy market. REGOs have been designed to demonstrate that one megawatt-hour (MWh) - equivalent to 1,000 kilowatt-hours (kWh) - of electricity has been generated from a renewable source such as solar, wind or hydro.
Each REGO certificate represents 1 MWh of verified green energy and can be issued to eligible systems. All installations must undergo a thorough application process, and once approved, monthly or annual generation can be submitted, leading to certificate issuance.
For commercial solar installations, this means your system not only produces power but also generates certified proof of clean energy. Whether the electricity is used onsite or exported to the grid, REGO certificates can still be claimed and either sold or retained, depending on your strategy.
This makes REGOs a flexible and traceable asset within the renewable energy market.
How Do REGOs Benefit Commercial Solar Owners?
While REGOs do not currently carry high standalone market value, they offer recognised proof of renewable generation -and this verification alone brings several key advantages for commercial system owners:
Additional Revenue Stream
REGOs can be sold alongside or independently of exported electricity under a Power Purchase Agreement (PPA), creating a modest but consistent income stream over time.
Hand in hand with Export PPA agreements, market-leading energy suppliers often purchase REGOs in addition to the exported energy - amplifying the overall revenue opportunity.
At Eden Sustainable, we offer a system buy-back scheme for clients with self-funded solar installations. As part of this, we will purchase your system, manage and optimise your Export PPA and REGOs to ensure maximum value for your exported electricity.
Sustainability Reporting
REGOs play a crucial role in corporate sustainability reporting, supporting Environmental, Social and Governance (ESG) commitments and internal net-zero goals. Holding and retiring REGOs allows companies to claim the environmental benefit of the electricity they generate, contributing to formal sustainability statements and third-party audits.
Enhancing Export PPA Value
Some energy suppliers offer higher export rates for sites that agree to transfer REGO ownership alongside their exported energy. This makes the electricity more attractive to buyers building a renewable energy portfolio.
REGOs can be sold or transferred annually, and it’s advisable to shop around or ask your Export PPA provider for their current rate. Transferring REGOs strategically can boost overall return from your solar asset.
Marketability of Green Credentials
Being able to verify renewable generation through REGO certificates significantly enhances a business’s green credentials. This is particularly useful in sectors where sustainability influences customer decisions or plays a role in public or private tendering processes.
Some fossil fuel or high-emission companies also purchase REGOs to offset their carbon footprint. By acquiring REGO certificates, they gain formal recognition for supporting green energy - making your renewable output more valuable in the broader energy market.
How Are REGOs Managed and Traded?
REGOs are issued electronically via Ofgem’s Renewable and CHP Register, usually on a monthly or annual basis, based on metered generation data. To access REGOs, the solar installation must be registered with Ofgem and meet all relevant scheme requirements. As mentioned, the process for an installation to be verified can be thorough, but the long-term returns and added asset value make it worthwhile.
At Eden Sustainable, we provide all the documentation required to make the REGO application process as smooth as possible, and remain available post construction to support clients through the process.
In practice, many commercial solar owners assign REGO management to their energy supplier or export aggregator under the terms of their Export PPA. In these cases, REGOs are typically bundled with exported electricity, and the income or benefit is reflected in the export tariff.
Alternatively, some system owners may choose to retain the REGOs and retire them themselves, especially if they wish to report on their own green energy generation.
Conclusion
REGOs may be small in scale per unit, but they play a significant role in verifying and increasing the value of clean energy. For commercial solar installations, REGOs represent financial, strategic, and reputational benefits - from boosting export returns and supporting ESG goals, to improving market visibility and traceability of your sustainability claims.
Understanding and leveraging REGOs effectively ensures your solar system continues to deliver value beyond just electricity generation.
