From Guest Blogger Sanjay Bowry: How Renewable Energy Solutions can Help British Businesses Save Money

“As the nation continues to suffer from rising energy prices, businesses with high energy needs are being put under even greater pressure by their ever-increasing energy overheads. Thankfully, renewable energy solutions are helping these businesses fight back in the battle on fuel bills,” says Dulas CEO Sanjay Bowry.

As part of its commitment to combating climate change and its efforts to secure a sustainable future for our country, the UK Government introduced a number of financial incentives to encourage homeowners and businesses to adopt renewable energy technologies.

From the Feed in Tariffs (FiT) for solar and wind power to the Renewable Heat Incentive (RHI) for biomass, these incentives have inspired many to consider ways to more carefully manage their energy consumption and to explore opportunities to generate their own renewable energy.

Shrewd homeowners were quick to adopt these technologies and the sight of a solar panel on a neighbour’s roof is no longer uncommon in both urban and rural Welsh communities. These residential renewable installations have long proved effective at generating the energy required to power the daily lives of UK households. But how does the technology respond to the rigours of commercial uses? Due to their locations, commercial installations are often less visible than their residential equivalents, but does this mean they are less common? Far from it.

Businesses are increasingly turning to renewable technologies as a mechanism for protecting themselves against rising energy prices, which rose 13% in 2012 and have risen more than 18% already this year. Over the next six years, we are expecting a further 9% year-on-year increase in energy prices. This is significant and means that in six years, electrical energy prices will be twice what they are today.

As challenging economic conditions continue to put pressure on revenues, the money saved by effectively reducing operating costs and energy overheads directly translates into profit. This is an attractive proposition and one which has alerted businesses across the country to look more closely at their energy usage and consider ways to reduce their reliance on fossil fuels.

Having the ability to harness free energy is already providing many businesses with a means to safeguard themselves against these spiralling costs and its popularity is growing. Recent Government figures released in the annual Digest of UK Energy Statistics showed that electricity production from renewable energy sources in 2012 was up by almost 20% on the previous year and accounted for over 11% of all electricity generated in the year. That figure is expected to rise this year meaning more business for solar PV companies and solar panel installers.

Wind energy, solar, biomass and hydro installations each have their own merits, though wind currently accounts for the majority of commercial enquiries. That’s not surprising really, given the UK is one of the windiest nations in the world and, provided a site has a reasonable wind speed, a properly serviced and maintained wind turbine can expect to be active at least 95% of the time.

As one of the UK’s longest established renewables businesses, Dulas has been involved in championing the renewables cause since it began and we are encouraged by the appetite that now exists from business for the technology. This growing corporate commitment to sustainability was demonstrated recently through our work with one of Wales’ most iconic brands, Ty Nant Mineral Water, which had its plans approved for the installation of a 500KW wind turbine on its water bottling plant in Ceredigion. Once installed, this turbine will provide enough energy to support 100% of the manufacturing at the site.

Renewable energy is effective for businesses from all sectors but it is those with higher energy usage that are battling hardest to reduce their operational costs. Those businesses whose core processes require vast amounts of energy are clearly the worst hit by energy price hikes. Businesses involved in manufacturing processes and farmers, in particular, are reaping the benefits of renewable technology.

A recent survey of 700 farmers by the “Farm as Power Station” project, involving Nottingham Trent University, Forum for the Future and Farmers Weekly, showed that over 40% of farmers are now using renewables, compared to only 5% identified in a DEFRA survey in 2010.

Much is made of renewable technologies’ green credentials and these factors should not be overlooked. For most businesses, lowering their carbon footprint and limiting their impact on the environment has become an important agenda. Sustainability is now a buzz word in business, and rightly so.

The beauty of renewable solutions for businesses is that they tick a number of boxes, both financial and environmental. Yes, the initial capital outlay in installing the equipment is a commitment, but most renewable installations, at current incentive rates, are able to pay for themselves within six to ten years.

The key to successful adoption of renewable technology is to ensure that installations are bespoke and tailor-made to suit the business and its circumstances. There’s no ‘one size fits all’ solution to installing a renewable system and experienced renewables businesses are there to support businesses in choosing the right technology to maximise their capacity for generating green energy.