The rising energy costs over the recent months have been worrying for everyone. Until now, it has been unclear how the government will intervene to support.
A few weeks ago, the government announced a price cap of £2,500 for an average consumer household. This equates to a saving of approximately £1,000 for the average household.
For businesses, it is a different story. The wholesale energy price has been capped. This is a temporary fix for 6-months during the period when gas consumption is at its peak.
The rising energy cost is putting a great deal of pressure on businesses. Many are closing their doors, with many others likely to follow.
So, is now the time for businesses to invest in efficiency and technology?
This is an incredibly difficult time for everyone. Some businesses don’t even have enough to keep the lights on, never mind find the capital to invest in technology.
This shouldn’t deter business from exploring what is available, as there are various financing options to support. It requires a bit of research but it is worth exploring, as it can stabilise energy costs in the long run and keep the business alive.
Financing comes in many forms and can be applied to renewable technology such as solar, battery, heat pumps etc. For solar, it can be done through loans or power purchase agreements (PPAs). These options can be beneficial for businesses that want to make the switch to renewables but don’t have the upfront capital.
For a PPA, the financer of the project would agree a long-term agreement and recoup their investment through the unit rate, the business would pay a reduced fixed rate compared with current market prices.
For energy efficiency measures, certain local councils are offering grants to support businesses. A great example is Coventry City Council. They are offering grants to businesses to support with costs on a range of technologies such as LED lighting, heating, refrigeration, renewable technologies and recycling, to name a few.
These are some simple ways businesses can explore to manage the risks of the rising energy costs. If you want to speak with me about this or any other net zero topic, please email me or find me on LinkedIn.