Green & Renewable Energy for Businesses Guide

It’s never been more important to become more sustainable as a business. There are two main ways you can do this. You could either switch to a green business energy tariff or get a business renewable energy source installed on your business’ grounds.

The best option for your company will depend on the nature of your business and your goals for eco-friendliness.

In this guide, we’ll provide you with more information on green energy sources and renewable energy companies to help you succeed in increasing your business’s green credentials.

What is Renewable Energy For Businesses?

Renewable energy comes from a source that cannot run out. These sources are sustainable and unlike fossil fuels, they do not emit greenhouse gases into the atmosphere. They are therefore deemed as better for the environment.

Installing a form of renewable energy in your business can not only reduce your carbon emissions, but it could also increase your green credentials and boost your company’s reputation.

There are different types of renewable energy. Examples include:

Solar PV Panels

One of the UK’s most popular sources of renewable energy, these systems use sunlight to generate electricity. Solar panels are typically easy to install and they are relatively low maintenance.

Costs can average at around £5,000-£10,000 for small solar PV systems. It usually takes between 6-10 years for you to get a return on your investment. 

Biomass Systems

Biomass systems are designed to generate both electricity and heat through the burning or fermenting of organic material. Costs depend on the size of the boiler used, so it can be difficult to get a price estimate for these systems. However, an automatically fed biomass boiler can cost between £10,000-£19,000, with installation costs included.

Wind Turbines

Another popular renewable technology in the UK. Wind turbines are used to generate electricity using power from the wind. These typically need to be placed in large, open areas. Microturbine installations usually cost approximately £10,000 (producing 2.5-6w), whilst larger turbine installations can be priced up to £3m. The payback time for this technology depends on the size of the turbine.

Solar Thermal

Solar thermal technology harnesses energy from the sun to heat water that is stored in a hot water tank. These systems are typically simple to install and they don’t tend to require a lot of maintenance.

Solar thermal systems can cost between £3,000-£5,000 to install. It usually takes around 5 years for them to return investment costs.

Anaerobic Digestion

This renewable process involves the breaking down of organic matter and the burning of biogas (containing methane) to produce heat and electricity.

What to Consider Before Investing in Renewable Energy For Your Business

Many businesses have taken the step to incorporate renewable energy into their business. If you’re considering this, here are a few factors you’ll need to think about:

• Your location and space – Some renewable sources are better suited to specific locations than others. You should consider whether your business has sufficient space for a renewable energy source. For example, wind turbines are most effective in places like coastal and rural areas, where space is ample and the wind is strong and reliable.

• Planning permission – You’ll need to obtain planning permission before you install a renewable energy source onto your commercial property. You should also ensure that the installation will not affect any other buildings nearby. Additionally, bear in mind that installing a renewable source can require alterations to be made to your premises.

• Legal aspects – It’s essential for your renewable technologies to be government-approved. Your selected installer should be registered with the Microgeneration Certification Scheme (MCS). This helps to protect your investment and ensures that your renewable source is installed to the highest quality.

• Costs – Installing a renewable energy source can have high initial costs. However, these costs are likely to be paid back in savings. You could also generate additional income through the government’s Feed-in-Tariff scheme (now Smart Export Guarantee).

These are just a few of the key factors you’ll need to consider if you choose to get a renewable energy source installed. If you’d prefer an eco-friendly option that requires less commitment, you could opt to get a green energy tariff for your business.

What is a Green Energy For Businesses Tariff?

A green energy tariff is a type of energy contract where your supplier matches the energy you buy with purchases of renewable energy. This energy is then fed into the National Grid. Thus, the more people that sign up for green energy contracts, the higher the percentage of renewable energy in the national supply. This is the main benefit of green energy tariffs, they promote a more sustainable generation of energy.

Who Are the Best Green Energy Suppliers in 2024?

Most of the suppliers in the Big Six offer green energy tariffs. However, there are also a number of smaller, independent providers that offer great green energy deals.

Here are some examples of green energy suppliers in the UK:

Octopus Energy

Octopus Energy is keenly committed to renewable energy and actively aims to help combat climate change. All of their electricity tariffs are 100% green and they provide carbon offsetting on their gas supply. This supplier is the UK’s biggest investor in solar farms. They have been deemed a Which.co.uk Recommended provider on multiple occasions.

Ovo Energy

OVO Energy is a big contender amongst UK energy suppliers, especially after acquiring SSE in 2020. This supplier offers 100% renewable electricity as standard to all its customers. They also provide 100% carbon-neutral gas, with 15% green gas and the remainder offset. OVO plant a tree in each customer’s name every year to help the environment.

Here’s a breakdown of OVO’s 15% green gas production:

• Anaerobic digestion (49%)
• Solar (32%)
• Wind (18%)
• Hydro (1%)

npower

Part of the UK’s Big Six suppliers, Npower is a popular name in the energy industry. 100% of Npower’s electricity is green; they generate this power from renewable sources such as wind turbines and hydroelectricity. This provider offers carbon offsetting and they are verified by sustainability specialists, EcoAct.

Ecotricity

A passionate green energy supplier, Ecotricity is committed to bringing an end to fossil fuel energy generation. Recognised as ‘Britain’s greenest energy company,’ this supplier also has a range of electric vehicle charging points across the country; underlining their dedication to environmental sustainability. Ecotricity is the only energy company that is certified as vegan by the Vegan Society. They are also the founders of the Global Green Energy Movement.

Ecotricity may not be the cheapest green energy provider, but the added costs go into their efforts to preserve the environment. 20% of their green energy is generated from their own renewable sources, the rest is sourced from other green generators.

Here’s a breakdown of their fuel mix:

• Wind (98%)
• Solar (0.12%)
• Hydro (0.7%)

What about other renewable energy companies?

Other energy providers may offer both standard fuel and green energy tariffs. However, all of their energy won’t be renewable like the dedicated green energy suppliers mentioned above.

What Are The Main Benefits Of My Business Going Green?

There are plenty of benefits of green energy tariffs and the renewable sources they promote. These include:

1. Eco-friendliness

Renewable sources don’t emit carbon gases when they generate energy. This means that, unlike fossil fuels, they don’t pollute the air. These reduced emissions help to preserve the environment and allow us to combat climate change more effectively.

2. Renewable sources won’t run out

Fossil fuels such as coal, oil and gas are all limited in supply. Meanwhile, as renewable technologies extract energy from sustainable sources like the sun, wind and water, there is no restriction on the energy that they can provide.

Due to the numerous benefits of renewable sources, the UK government has pledged to stop using coal to generate energy by 2025.

3. Low maintenance

Fossil fuel energy generation can require a significant amount of work and maintenance. This is not the case with renewable energy. Technologies such as solar panels and wind turbines don’t have many moving parts (if any). They are therefore less prone to malfunctions.

Furthermore, as most renewable sources don’t use combustible or flammable fuel sources, they can be deemed safer.

4. Can help you save

As aforementioned, renewable technologies can have expensive purchase and installation costs. However, the savings they provide tend to outweigh these initial costs and further savings can be made through the government’s Feed-in-Tariff scheme.

If you’d prefer not to make such a long-term investment, you could still go green by switching suppliers and getting a green energy tariff.

5. Increased reputation

Whether you decide to invest in a renewable source, select a green energy tariff or simply make more efforts to improve your business energy efficiency, going green will have a positive impact on your company.

Doing your bit for the environment will boost your green credentials and improve your reputation amongst customers and potential partners. Studies have shown that a third of customers prefer to make purchases from sustainable brands, and this figure is likely to rise in the future.