Rising energy costs are a significant concern for UK businesses, impacting their bottom line and overall sustainability. Efficient energy management is not only crucial for reducing expenses but also for enhancing corporate responsibility and sustainability.
UK energy costs have been the subject of intense debate over the past couple of years. The energy regulator Ofgem, originally introduced an energy price cap for households to protect those who did not switch – as higher costs disproportionately affected the old and financially vulnerable.
Businesses were not afforded the same energy price cap protection, but following a backlash, the Government announced the Energy Bill Relief Scheme, which provided a discount on wholesale gas and electricity prices for all businesses.
When this came to an end in April 2023, it was replaced by the Energy Bills Discount Scheme which offered a discount on gas and electricity depending on the rates paid to the supplier.
However, that scheme finished in March 2024, removing all government support for struggling businesses. It means that small businesses are once again at the mercy of volatile energy prices and rising energy costs are again a concern for many business owners.
In this article, we share some expert guidance on keeping costs down as well as providing practical tips and information on available support to help UK businesses manage their energy bills effectively.
We will start with the importance of conducting comprehensive energy audits, before moving onto the benefits of solar energy, battery storage and other technologies.
Energy Audits
This is the starting point for reducing energy costs. We will work with your business to identify inefficiencies in your systems.
The audit will look for areas with high energy wastage and recommend improvements. We will focus on both quick wins to get the ball rolling, like lighting upgrades, along with longer-term projects such as solar installations, and insulation improvements.
We will then develop an action plan with clear timelines and responsibilities to implement the recommendations of the audit, prioritising energy-saving measures based on cost-effectiveness and impact to ensure success.
Following this, we will monitor and review to measure the effectiveness of the changes. We will set up a system to track energy consumption after implementation, adjusting strategies where required to maintain efficiency.
Investing in solar energy systems
1. The first step in this process is to assess feasibility. We will conduct a site assessment to determine solar potential, considering factors like roof space, orientation, and shading. A great time to fit solar is alongside roof replacements. It’s also a good idea to look to carports as a way of using dead space for energy production.
2. The next stage is Financial Planning. We will explore financing options, including grants, loans, and Power Purchase Agreements (PPAs). We calculate the return on investment (ROI) and payback period for solar installations to ensure financial viability. We then work out a levelized cost for what you self-produce. The stability of this will give an idea of the long-term price of your green energy.
3. It’s important to choose reputable solar installers with experience in commercial projects who take the Collective Construction Design Management (CDM) Duties seriously. Ensure the installation complies with local regulations and standards to avoid any legal issues.
4. Set up a maintenance schedule to keep panels clean and ensure optimal performance. Monitor energy output regularly to identify and resolve any performance issues quickly.
Battery storage solutions
Determine Storage Needs: Analyse your energy consumption patterns to size the battery system appropriately. Consider the capacity required to cover peak usage times and provide backup power during outages.
Integration with Solar: Ensure compatibility between your solar system and battery storage for seamless integration. Use smart inverters and energy management systems to optimise energy flow between solar panels, batteries, and the grid.
Financial Considerations: Investigate available incentives and subsidies for battery storage. Assess the long-term savings from reduced grid dependency and lower peak demand charges.
Maintenance and Monitoring: Establish a maintenance plan for battery systems to ensure longevity and efficiency. Use monitoring software to track performance and manage energy usage effectively.
Additional Tips
- Optimise Energy Contracts Regularly
- Keep updated on new and future technologies that integrate with your energy saving investments for the business or organisation.
- Empower your team to become involved in your plans as they will become invested in the sustainability of the business.
Managing rising energy costs is a multifaceted challenge that requires a strategic approach. By conducting energy audits, implementing energy management systems, optimising operations, and investing in renewable energy, UK businesses can significantly reduce their energy costs. Staying informed about the latest developments in energy policy and market trends will also help businesses adapt and thrive in a changing energy landscape.
