As businesses gear up for an influx of activity and a return to premises, many are auditing the systems that they have in place and considering alternative solutions to decrease costs and increase efficiency. One area in which businesses could make large gains is in their approach to energy. Business owners are contemplating renewable energy to reduce their carbon footprint and save on electricity bills.
How does renewable energy affect a business?
With the UK committed to reducing carbon emissions by 80% by 2050, business owners are encouraged to think outside the box when it comes to satisfying their energy demands. There are several benefits to switching to renewable energy sources, over and above reducing your carbon footprint and energy bills.
Energy subsidies incentivise switching
Given the upfront cost of installing commercial renewable energy solutions, you may be reluctant to make the switch, and understandably so.
But there are several options available for those willing to make the leap to commercial renewable:
- The Green Deal to Lease Purchase Agreements
- Enhanced Capital Allowances
- Renewable Heat Incentives
- and others
These funding options help mitigate the initial costs,. They allow you to deduct the cost of equipment against your taxable profit and provide you with the infrastructure to transform your business energy practices.
Improving your reputation
An often overlooked benefit of converting to green energy practices is the social impact it has in your community and among your customers and stakeholders.
Sustainable business practices are valued. They show a commitment to the betterment of the environment in which we all live. Given that every advantage must be leveraged in this competitive landscape, you cannot overlook the impact that going green can have on your brand.
Planning is easier
Because renewable energy sources are not affected by fluctuations in electricity prices, you can forecast expenses more easily.
It also becomes easier to plan your energy usage and needs as you get to grips with the average energy output of your green energy solutions.
The combination of solar energy and improving inverter technology means that you can reliably generate power at a large scale, as recently demonstrated by the UK’s largest solar rooftop system, recently unveiled at the Port of Hull.
Green energy for profit
With the age of fossil fuels coming to an end, being an early adopter of green energy technology comes with advantages.
Another benefit of going solar is that you are able to sell excess electricity back to the grid at a premium. This flexibility means that even when you’re not using the full potential of your solar array, you can make a positive impact to the environment, and turn a business expense into a profit.
Exemption from levies
Businesses that adopt renewable energy practices are exempt from the Climate Change Levy (CCL). This is the government-imposed tax designed to encourage businesses to adopt energy-efficient practices and reduce carbon emissions.
The sooner your business makes these changes, the more you stand to benefit from levy exemptions.
Find a partner to help you switch
Committing to switching to renewable energy is one thing, but it can be daunting to follow through. Finding a partner with the expertise to give you the right guidance is vital when making the switch to renewable energy.
At Smarter Business, our team of experts will explore all the options, and find a renewable energy solution that is cost-effective and future-proof.
If you’re interested in switching to renewable energy, get in touch with us today.