Record-breaking temperatures, dramatically increasing concentrations of atmospheric carbon dioxide and increasingly common extreme weather disasters: the past year alone has demonstrated that we’re living through a climate emergency, undeniably caused by anthropogenic activity. However, when paired with wholesale energy price volatility, first observed in October 2021 and worsening during the Russian invasion of Ukraine, businesses are facing a crisis of even greater gravity – an energy and an environmental crisis.
Wholesale energy prices have reached all-time highs, costing upwards of 80p/kWh at the height of Nord Stream operational uncertainty last year. It is therefore no surprise that the rate of business insolvencies within England and Wales is at its highest level since 2009. Now more than ever, it’s important for businesses to fully understand the options available to them, and how green technology can help tackle the current energy and environmental crisis
Fortunately, green technology holds the answer to both issues and can help lower the energy bills of businesses, moving them closer towards net-zero goals in the process. This is what the webinar I hosted recently intended to highlight.
The solutions are green
Businesses across all sectors have an obligation to do the best they can for their customers, their employees and the planet as a whole. Reviewing their current energy practices and switching to greener energy solutions will not only provide economic and environmental benefits, but will help to elevate the reputation of the company too, leading to greater sales, retention and loyalty. In an ever-competitive economy, getting ahead through green tech could provide the edge many businesses are looking for.
At Advantage Utilities, we employ two guiding principles that shape our work in reducing carbon emissions whilst making energy and operational savings in the process. These are:
The greenest form of energy generation is the most affordable method of consumption
Renewable energy generators have undergone such dramatic technological advancement over the past decades. This means technologies can now produce energy at a cheaper rate than otherwise consumed from the grid. This is achieved through technologies related to onsite generation.
The cheapest and greenest form of energy is that which is not consumed at all
This refers to technologies that undertake the same function as already existing infrastructure. However, these newer, more efficient technologies consume less gas and/or electricity but have the same performance output. This is achieved through technologies related to onsite efficiency.
Increased onsite generation
There are numerous ways that businesses can increase their onsite generation, including solar PV, wind turbines, hydro power, energy storage, air and ground source heat pumps, electric vehicle charging and hydrogen. However, not all of these solutions will be applicable to each business, so a consultation on your site is the best method to identify which technology is best. Beginning with conversing and auditing a site, involving data collection and site assessments, businesses are then designed an accurate system model of what their site would look like. The process ends with delivery and management, enabling businesses to increase their green credentials and energy savings by reducing grid-sourced energy which is both pollutive (0.19kg of CO2/kWh) and expensive (~20 to 32p/kWh).
To give two examples of clients who have successfully installed solar PV on their sites, the first had an installed size of 100.04kWp and was able to make £25,687.20 in energy savings (85,624kWh) in the first year alone. With a lifetime of 25 years, the business is projected to save £513,265 by making 2,053,061 kWh in energy savings over this period. Similarly, a second client had an impressive installed size of 589kWp, enabling savings (375,488 kWh) of £112,646 in the first year and an incredible £2,280,837 over the 25-year lifetime of the installation through making 9,123,349 kWh in energy savings.
Finally, businesses should also explore government incentives on offer as part of their strategy to increase onsite generation. This includes full capital expensing, enabling cost reductions through investment of year-end profits as well as the 50% first-year allowance tax relief scheme – enabling businesses to claim 50% of the cost of eligible capital expenditure, including thermal insulation and solar panels.
Increased onsite efficiency
Businesses should look to the following solutions to increase onsite efficiency: smart building solutions, energy efficient boilers such as biomass boilers, LED lighting, voltage optimisation and upgraded HVAC.
By simply switching to LED lighting, businesses can make impressive energy savings. A client of ours was able to make 52,000kWh in energy savings within the first year, having replaced 382 existing non-LED fittings with high-efficiency, long-lasting LED alternatives. Savings are estimated to total £130,000 over the 10-year lifetime of the LED fittings and the enhanced lifetime of lighting fixtures saves on OPEX replacement which would otherwise cost £680 per year.
Voltage optimisation is another effective method of improving onsite efficiency. By matching onsite electricity to the exact supply voltage required for lighting and equipment via voltage optimisation devices, businesses will reduce their grid consumption and make savings in the process. A client of ours was able to reduce grid consumption by 8%, saving a combined total of 134,975 kWh a year or 25,645kg of CO2! Yearly savings are estimated at £33,744 and the voltage optimisation devices have an expected lifetime of 100 years, so 25-year savings alone would total £843,593.
Last but not least, boiler upgrades should not be overlooked in any organisation’s journey to net-zero. Installation of two 120kW Strebel S-CB 120 boilers allowed another of our clients to increase their efficiency from ~80% to ~95%, leading to an annual saving of ~100,000 kWh per year on gas. The value of this saving was £9,000 in the first year alone, also making carbon savings of 19,000kg in the same time frame.
It is crucial that businesses look to green technology when considering how they can best make cost savings. Their progress in reducing their carbon emissions is also central to how they will reach net-zero as early as possible. Green technology is the best solution they can employ to help get through the current climate crisis and reduce their bills in the process, so they should not delay in finding out how beneficial it could be for them.
For more information on green technology, view my webinar on the solutions available to businesses here
By Dr. James Crosby-Wrigley
