Small businesses are right at the forefront of the Government’s green energy revolution.
The Government needs the buy-in of business owners to meet their own tough targets. But if the Government needs entrepreneurs to buy into the green revolution what options are available to the UK’s four million small firms? How best do you go green and what is the cost implication?
Stiebel Eltron is a renewable energy product manufacturer based in Merseyside. Mark Mark McManus, managing director of Stiebel Eltron, a renewable energy product manufacturer based in Merseyside, gives his top tips for business owners on going green.
Cost
Converting your property to green energy can cost up to £10,000. This sounds like a massive cash outlay but there are now significant cash incentives to help pay the costs of going green.
In February a new cash incentive scheme was launched which will make a massive impact on encouraging business owners to go green. The Feed in Tariff (FiT) provides significant and long term financial returns for any property using renewable products to generate heat and electricity.
Under the FiT property owners who install low carbon electricity technology, such as solar photovoltaic panels and wind turbines, will be paid for the electricity they generate, even if they use it themselves.
There are leasing schemes available to slash the capital outlay costs and also grant schemes which can pay for up to half the installation costs, but it is vital to ensure you apply for these properly
The level of payment depends on the technology and is linked to inflation. They will get a further payment for any electricity they feed into the grid. These payments will be in addition to benefiting from reduced bills, as they reduce the need to buy electricity. A typical 2.5kW well sited solar panel installation could offer a business owner a reward of up to £900 and save them £140 a year on their electricity bill.
Also, under the Renewable Heat Incentive, installing a ground source heat pump in an average semi-detached house could be rewarded with £1,000 a year and lead to savings of £200 per year if used instead of heating oil.
There are leasing schemes available to slash the capital outlay costs and also grant schemes which can pay for up to half the installation costs, but it is vital to ensure you apply for these properly. Speak to a green energy adviser who should be well versed in applying for these.
Beware of cowboys
Small businesses must work with experts who have an established track record in working on substantial green energy projects for your type of property. Ask for evidence of industry qualifications, ask for examples of previous work similar to your property and request testimonials.
It is desperately frustrating to see business owners ripped off by tradesmen who think they can do the job with minimal training or out-and-out cowboys who are just after a fast buck.
Business owners are advised to seek green energy advice, just as your would go to a doctor to seek health advise. Green energy, like your health, requires highly skilled, highly qualified professionals to get right.
Horses for courses
Every property is different and has its own needs. Do not be duped by pitches from salesmen flogging the ‘one product fits all’ myth. Each property needs to be assessed for what combination of green technologies work best including heat pumps, solar thermal, biomass, hydro and insulation.
For this reason it is vital to bring green energy experts in from the start of the project to give advice on every step of the journey from design, to product specification, to installation and maintenance. You must get the product mix right from the beginning.
Homework
Research shows that property owners who have paid for a system will receive 20% more efficiency due to their interest in it having paid for it. Businesses who rent their premises are less likely to maximise the green energy benefits even though it will result in cheaper energy bills.
Therefore whether you own or rent your premises, learn how to optimise your equipment to help save money on your heating bills.
