Everyone, it seems, is talking about ‘Green Energy’ and ‘Greening’ your business. Apart from Government pressure and a moral obligation to ‘do your bit’, are there tangible benefits for your business, and if so, what are they? 

Government-led energy efficiency

Taxes such as Climate Change Levy (CCL) add to the financial burden for the environmentally unaware company. There is also increasing Government and consumer pressure on companies to be more energy efficient. 

Introduced in 2008 as the Carbon Reduction Commitment, the CRC Energy Efficiency Scheme is now a mandatory UK scheme. Qualification is based on energy consumption, and is aimed at improving energy efficiency and cutting carbon dioxide emissions in large public and private sector organisations, which collectively account for about 12% of the UK's CO2 emissions.

The scheme encourages organisations to develop energy management strategies so they have a better understanding of energy usage. They can then make financial savings and reduce energy consumption. Qualifying companies must buy into the scheme, and performance and achievement tables provide an  incentive to improve efficiency.

The CRC Energy Efficiency Scheme  is designed to tackle carbon dioxide (CO2) emissions not already covered by Climate Change Agreements (CCAs) and the EU Emissions Trading System (EU ETS).

Reducing energy usage = saving money

In today’s uncertain economic climate, businesses are constantly looking for ways to save money. Reducing your energy consumption will also reduce your outgoings, leading to an increase in profit.

Even if your organisation isn’t a large enough consumer to be included in formal Government schemes, it still makes sound financial sense to actively manage your energy usage. As every cost reduction analyst knows, just the process of identifying and quantifying your energy usage will lead to opportunities for reducing your costs. And once you’ve identified your usage, you can use the information in your business planning to improve energy efficiency and reduce costs.

What is Green Energy

Choosing Green Energy will benefit your business in more ways than one.  As well as saving you money, another benefit of green energy is the positive message it sends to your prospective customers. 

Green energy comes from renewable, sustainable sources such as wind power, solar energy, biomass fuels and geothermal energy.  Harnessing the earth’s natural resources is the only way to prevent a world-wide energy crisis.

Fossil fuels, a form of brown energy, are running out.  In addition, the use of brown energy is a major contributor to CO2 emissions and increases the impact of climate change.

Green energy tariffs are available from the major energy suppliers, so you don’t have to generate your own energy to be part of the Green Energy movement.

If you are able to generate your own green energy, you may also be able to benefit from the Feed In Tariffs (FIT), providing a further reduction in your costs. 

Financial Benefits of Green Energy

Energy costs are rising, putting increased pressure on businesses.  Since 2001, the Climate Change Levy (CCL) has taxed businesses on their brown energy consumption. 

CCL was introduced to encourage businesses to become more environmentally aware and to promote investment in green energy.  When you make the change to green energy, not only will you save money on your fuel bills, but you will also make additional savings on CCL, as sustainable power supplies are exempt from the Climate Change Levy.

Once your green energy system is up and running, you will substantially reduce your fuel costs.  The Carbon  Trust estimates there are savings of £400 million to be made for UK businesses just on efficient water heating systems alone. 

Replacing energy-guzzling incandescent and fluorescent lighting with LEDs will reduce your costs even more.  And depending on the type of green energy system you choose, you can also recoup money through the Feed-in Tariff scheme.

Funding your Green Energy Investment

The cost of some energy efficiency measures, such as retrofitting LED lighting, is low.  However, to benefit fully from green energy, investment is needed.  But investing in renewable energy such as solar, wind turbines or ground sourced energy, will deliver measurable long-term financial and environmental benefits. 

This has been recognised by the Government and initiatives are already in place to help you fund your green energy changes.  Green Deal is just one of several options open to you.  Which funding option is best for you will depend on your individual situation, and it’s recommended you take advice from a reputable green energy specialist, like Eco2Energy, before making a decision. 

What is the Green Deal?

Green Deal is a Government initiative, launched in October 2012 to help businesses and home-owners become more energy efficient.  With the Green Deal Finance scheme, you can borrow up to £10,000 to implement your energy-saving solutions.  Some of the money you save on your energy bills goes towards paying back the Green Deal loan.  This means you can make the change to green energy without increasing your financial liabilities. 

Green energy not only provides cost-saving benefits, it has marketing advantages too.  As more people are becoming environmentally-aware, they are actively looking for green suppliers. 

Many companies building their green credentials will only trade with other environmentally-aware businesses.  Marketing yourself as an ethical green supplier can open up lucrative new markets, no matter what your business.

Green Energy is Win:Win

Whether your motivation is to reduce your carbon footprint, reduce your costs or market your business, there are many benefits of changing to green energy.  Start your green energy journey today.  It’s win:win for you, your business and the planet.