Renewable Energy for Businesses | Ultimate Guide
With net zero initiatives and environmental consciousness taking centre stage across the globe, businesses are exploring renewable energy options to not only reduce their carbon footprint but to also save money on long-term operational costs and ensure compliance with ever-changing environmental legislation.
But what are the main sources of renewable energy for them to consider? And how do they go about implementing it?
What Is Renewable Energy?
Renewable energy comes from naturally replenishing sources such as the sun, wind, water and geothermal heat. Unlike fossil fuels, which are finite and take millions of years to form, renewable sources are abundant, sustainable, and significantly reduce environmental impact. By embracing renewable energy, businesses can decrease their dependence on non-renewable resources, cut energy costs, and contribute to the fight against climate change.
Is Renewable Energy Reliable for Business?
Businesses often worry about the reliability of renewable energy when considering a switch. However, advancements in technology and infrastructure have made renewable sources just as dependable as traditional energy.
However, solar power can be stored in batteries for use at night or on cloudy days, while wind energy can be paired with storage systems to maintain a consistent supply. In the UK, grid connections are increasingly integrating renewable energy, ensuring businesses have access to a stable and reliable power source.
Types of Renewable Energy for Businesses
There are several types of renewable energy that businesses can choose from, depending on their location, energy needs, and sustainability goals.
Solar Energy
Solar energy is a widely used renewable power source for businesses, converting sunlight into electricity through solar panels. It can supply energy to anything from small offices to large industrial facilities. One of its greatest advantages is its virtually unlimited availability, particularly in sunny regions.
Even in the UK, where cloudy weather is common, businesses can still benefit by installing solar panels that generate power throughout daylight hours.
Are There Business Grants for Solar Panels in the UK?
There are several financial incentives and grants available for businesses in the UK to install solar panels.
The UK government offers schemes such as the Smart Export Guarantee (SEG), which allows businesses to sell excess solar energy back to the grid.
Additionally, businesses can claim tax relief on investments in energy-saving technologies, including solar panels. Moreover, regional grant programs may also be available to assist with the installation costs.
Wind Power
Wind power involves harnessing the energy from wind through turbines to generate electricity. It is particularly effective in areas with consistent and strong winds. Many businesses, especially those located in rural or coastal areas, can benefit from wind turbines.
In the UK, large-scale wind farms are a common sight, both offshore and onshore. However, smaller businesses can also invest in smaller turbines to generate electricity for their own needs. Wind power is a renewable and reliable energy source, with the capability of producing large amounts of electricity if installed correctly.
Like solar energy, wind power can be paired with energy storage systems to ensure power availability during times when wind speeds are low.
Hydro Energy
Hydropower, or hydroelectric energy, uses water flowing through turbines to generate electricity. While large hydroelectric power plants require substantial infrastructure, smaller systems can be set up in rivers, streams, or other water bodies to generate power for businesses.
In the UK, where numerous rivers and streams exist, businesses that are located near such waterways can harness hydro energy. Though not as widely used as solar or wind power, hydroelectric energy can provide a stable and predictable power source, particularly for businesses located near water sources with consistent flows.
Geothermal Energy
Geothermal energy is derived from heat within the Earth, which can be harnessed for electricity generation or direct heating. This type of energy is particularly useful in areas with geothermal activity, such as Iceland, New Zealand, and parts of the United States.
In the UK, geothermal energy is not as prevalent as in other regions, but it is still a viable renewable energy option for businesses that are willing to invest in the infrastructure required to tap into the Earth's heat. Geothermal systems can provide sustainable heating for businesses, reducing reliance on fossil fuels and cutting energy costs.
Renewable Energy Business Benefits
Switching to renewable energy offers numerous benefits for businesses, from reducing costs to enhancing corporate social responsibility. Some of the main advantages include:
- Cost Savings: Over time, renewable energy can help businesses reduce energy costs. With solar and wind power, businesses can generate their own electricity, reducing their dependence on external energy providers. With energy costs higher than they ever have been, having your own sources is a huge benefit. Additionally, the aforementioned government incentives like tax breaks and subsidies help reduce upfront installation costs.
- Sustainability and Brand Image: Companies that use renewable energy are seen as environmentally responsible, which can improve their brand image and reputation with customers. Consumers are increasingly drawn to businesses that are committed to sustainability, and failing to adapt could cause businesses to fall behind their more contemporary competitors.
- Energy Security: By generating their own renewable energy, businesses can become more energy independent. This reduces the risk of power outages or price fluctuations in the energy market, giving businesses greater control over their energy supply.
- Compliance with Regulations: As governments implement stricter environmental regulations, using renewable energy can help businesses stay compliant and avoid potential fines or penalties.
How do Companies Switch to Renewable Energy?
Switching to renewable energy is a multi-step process, but it can be straightforward if planned carefully:
Conduct an Energy Audit
The first step is to assess your business's energy needs. Conduct an energy audit to understand how much energy you use and where it comes from. This will help you determine the best renewable energy solution for your needs.
Choose the Right Renewable Energy Source
Based on your audit, choose the renewable energy source that aligns with your business's location, size, and energy needs. Whether it's solar, wind, or another source, make sure you choose a solution that is both cost-effective and efficient.
Consult with Experts
Work with energy consultants, renewable energy providers, or contractors to understand the logistics of installation, permits, and costs. They can guide you through the process and help you find the most suitable technology.
Install the System
Once you’ve chosen the right system, work with a certified installer to set it up. The installation will typically involve system design, permits, equipment installation, and integration with your existing energy infrastructure.
Monitor and Maintain
After installation, it’s important to monitor the performance of the system and maintain it regularly to ensure efficiency. Many renewable energy providers offer monitoring services to track energy production and system performance.
By following these steps, businesses can make the transition to renewable energy smoothly and start reaping the benefits of sustainability and reduced energy costs.
One of the best ways to gain an understanding of how to become more sustainable and cost effective is to complete some training on the subject. We have environmental courses available for all levels of an organisation. From the IEMA Sustainability Skills for the Workforce course to the IEMA Foundation Certificate in Environmental Management for those looking to build a specialist understanding of the subject.
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