Would You Pay More For Renewable Energy?

As a small business owner, you might wonder whether switching to renewable energy is worth the extra cost. Let's explore this topic to help you make an informed decision.

Is Renewable Energy More Expensive?

The cost of renewable energy can vary depending on how you plan to use it:

Option 1: Green Tariffs

Many UK energy suppliers offer green tariffs, where the electricity you purchase is produced using renewable methods. These tariffs are increasingly competitive, and in some cases, they may even be cheaper than standard tariffs, especially as Government incentives become more common.

Option 2: Self-Generated Energy

Installing renewable energy systems, like solar panels or wind turbines, involves upfront costs but can lead to long-term savings. Small solar panel systems typically cost £5,000 to £10,000 and can take six to 10 years to pay for themselves via savings on energy bills.

The Benefits of Renewable Energy

Switching to renewable energy sources reduces your carbon footprint, contributing to environmental sustainability and enhancing your company's reputation with eco-conscious customers. The UK Government offers various incentives to encourage business owners to adopt renewable energy. For example, there are business rate reliefs for investments in on-site renewable energy generation and storage until 2035.

Generating your own renewable energy can also reduce your reliance on the grid and insulate your business from fluctuating energy prices.

The Challenges to Consider

Despite the benefits, some challenges might affect your decision. The upfront costs associated with self-generated renewable energy can be substantial, which could be a barrier for some businesses.

Research indicates that a lack of information has prevented some British businesses from embracing green energy.

Is Renewable Energy Suitable For My Business?

To determine if renewable energy is right for your company, consider whether you can handle the initial investment required for installations. Evaluate whether your business location is suitable, like having sufficient roof space for solar panels.

Also, consider your business's long-term plans and whether the potential savings and environmental benefits align with your goals.

In Summary

While the upfront costs of installing renewable energy systems can be high, the long-term benefits - such as lower energy bills, energy independence and a positive environmental impact - can make it a wise investment.

However, if installation isn’t feasible for your company, switching to a green energy tariff could be an easier and more affordable way to reduce your carbon footprint. Many green tariffs are now competitively priced, and you might not have to pay more to shift to renewable.

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