CLEAN ENERGY NEWS

UK businesses urged to prepare for the end of Government support on commercial energy bills

One of Britain’s biggest solar businesses has urged companies to waste no time in becoming part of a new era of commercial and industrial operations generating their own energy through renewable sources.

The call comes following news that the energy price cap will end in March 2023, and warnings from the World Bank that energy bill support is unaffordable for governments –  making it increasingly unlikely that businesses will be able to count on ongoing support with energy costs.

Before the introduction of the Energy Bill Relief Scheme, large users of energy saw costs soar to 45-65p per unit, a circa 350% increase over the last year alone, prompting fears that many businesses would go to the wall. It has been estimated that the intervention by the government will reduce expected costs this winter by half.

Stephen Barrett is managing director of Solarsense, one of the longest standing solar panel contractors in the UK, which expects to see a sixfold increase in turnover this year, believes that companies need to use the six-month relief scheme to get on the energy self-generation ladder.

“There is no doubt that this short-term help from Government has been welcomed by businesses across the country as it will provide a much-needed stop gap and avoid potentially disastrous levels of energy cost increases for businesses this winter.

“However, there are no guarantees beyond the six months and therefore businesses need to consider their options urgently as to life after the relief ends. The Government support gives precious time for companies to transition over to renewable energy sources so they are much more in control of energy bills long into the future and limit their exposure to future price hikes which will affect the profitability and competitiveness of UK plc.

“Even with the reduction in business energy bills, as a result of the Government relief scheme, they are still way higher than the likes of solar energy, which works out at about 4p/kWh based on the capital outlay and generation over 20 years.”

Barrett added:

“For businesses with high energy usage, it is particularly critical to act now in order to have an alternative supply up and running before the price cap ends in April next year. A typical solar project, for example, takes around 4-6 months to get through planning, grid permission and installation so our message to businesses is: don’t delay.

“There’s never been a better time to do it. With solar technology coming down in price and energy costs going in the opposite direction we are seeing payback periods for the technology as low as between 2-5 years which would have been unthinkable just a few years ago.

“Businesses should maximise the use of their roof spaces – those who have already have panels on south facing roofs may now find east/west or north facing aspects are viable, given the high costs of energy from the grid.

“Not only is making the transition to renewable sources of energy good for the balance sheet, it is also essential in the UK’s move away from fossil fuels and towards a greener, more stable, energy future.”

The business case for installing solar panels now

• The relief scheme is currently only in place for six months, providing a short window of opportunity for businesses to switch to renewable energy technologies
• Solar energy typically costs around 4p per kWh – some 90% lower than energy purchased on the open market before the relief scheme was launched
• Decreasing cost of solar technology and rising energy costs have cut payback times for PV panels to between 2-5 years in some cases
• Installing solar panels will reduce your corporate carbon footprint and offers a range of added benefits
• Solar panels allow you to pre-purchase electricity at a fixed unit price, forecast your long-term energy costs and protect your business against future increases in utility prices.

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