# Solar PPA vs a green energy tariff: which cuts costs more?

A green energy tariff makes the electricity you buy from the grid renewable, but it doesn’t make it cheaper — you still pay grid prices. A solar PPA generates your own power on site at a fixed rate below the grid, so it cuts both carbon and cost. Many businesses use both.

## What a green tariff does

A green or renewable tariff means your supplier matches your usage with renewable generation, usually backed by certificates. It supports renewables and improves your reporting, but you still buy all your power from the grid at market-linked prices — so it does little for your bill.

## What a solar PPA does

A solar PPA generates electricity on your own roof and sells it to you at a fixed rate guaranteed below the grid. That reduces both your carbon and your cost, and shields part of your bill from market volatility — with no upfront outlay.

## They work well together

On-site solar covers a share of your demand cheaply; a green tariff can cover the rest of your grid draw with renewable supply. Together they give the strongest combination of cost savings and genuine decarbonisation.

## Frequently asked questions

**Isn’t a green tariff enough to be sustainable?**

It helps your reporting, but it doesn’t reduce how much energy you buy or what you pay. On-site solar physically generates clean power and cuts your cost — a more tangible step, and stronger evidence of real action.

**Can I have both solar and a green tariff?**

Yes, and many businesses do. Solar cuts the power you buy; a green tariff can make the remaining grid supply renewable. Together they maximise both savings and decarbonisation.

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Source: [Solar PPA vs a green energy tariff: which cuts costs more?](https://ppafunding.com/guides/solar-ppa-vs-green-energy-tariff) · Author: PPA Funding team · Updated: 2026-07-30

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