There’s never been a better time to invest in renewable energy

 

We’ve all seen the climate change headlines that are getting more dramatic every week.

Just this morning, there’s a new study that has discovered the World now sees double the number of 50C days each year than the 1980s ⁽¹⁾, and another Global survey has revealed the depth of anxiety that young people feel about climate change, with almost 60% feeling very worried about their future ⁽²⁾.

Add this to the backdrop of record rising energy costs now at levels not seen since 2008, smaller energy suppliers collapsing and the impending release of the cap on standard energy tariffs from October and we can see a perfect storm brewing, just as the UK prepares to host the biggest climate change summit in November (COP26).

The targets are certainly well-documented now – we need to get to Net Zero by 2050.

This target may still seem a long way off, but change needs to happen fast and maybe some of these dramatic headlines are beginning to drive the shift towards alternative options for businesses and consumers in the UK to protect themselves from the steepest energy bills in 10 years.

Here are just a few of the key things that are happening to help people make the right decisions:

• The cost of installing renewable energy technology is reducing quickly
• It is now up to 50% cheaper to generate renewable energy than using fossil fuels
• Performance of renewable energy is continually improving with new innovations such as battery storage in a rapidly growing industry
• Electricity suppliers are introducing agile tariffs to support renewable energy usage at the cheapest rates
• Grants and subsidies are still available for businesses and homeowners to benefit from installing renewable energy at their premises

The Growth of Renewable Energy

The renewable energy industry is growing fast, as consumers and businesses alike learn more about the huge savings and benefits that can be made, whilst also reducing their carbon footprint and supporting the drive towards net zero and a brighter, greener future for all of us. For example, UK Solar firms installed 135MW of solar energy capacity in the second quarter of 2021, more than double for the same period in 2020! ⁽³⁾ And large commercial rooftop installations of more than 100kW in size have seen their strongest ever period of sustained growth, supported by a rush of new planning applications that are fuelling the pipeline for the coming year.

So what’s driving this growth? Aside from the fact that businesses are recognising their responsibilities towards climate change and making positive changes to the way they do business, the facts are clearly indicating that renewable energy is one of the best investments you can make right now.

Currently, businesses are typically paying between 15p and 20p for electricity (but as we all know, that is set to rise significantly). By generating your own renewable energy with solar panels for example, you reduce the need to buy electricity at ever increasing prices – that’s already a big win!

Then, if you are using more of the energy you generate on site, you will get a greater return. For example, a large commercial system of 100kw with 95% on-site usage will generate an average of 13.5% return, as well as over 40 tonnes of carbon reduction.

But, what many business owners may not realise is that by installing renewable energy solutions such as solar PV, renewable heating, battery storage or solar thermal, it could actually be the best investment you will ever make. With solid payback periods of 5-6 years, ongoing energy security and a potential 40 year lifespan on solar PV systems for example, it increasingly makes economic sense to consider the change.

In many cases, businesses can actually make more money in the longer term by reducing their energy bills than many other sales and cost reduction activities.

And that’s before you consider other benefits like capital investment allowances. Just like buying plant equipment or machinery, renewable energy will reduce your tax burden. As announced in the latest budget, there will be 100% allowances into next year.

So, there are lots of areas where solar energy alone can provide a big financial win for your business – the economics really do make sense and many businesses are already reaping the benefits. For example:

TG Group recently installed a 57kWp solar energy system on their builders’ merchants site in Bridgnorth, including 152 roof mounted solar panels installed by the team at Caplor Energy. With support from the Marches Renewable Energy Grant scheme, TG Group believe they will recoup their costs in just over 3 years, enabling them to operate a sustainable and responsible site whilst also making significant ongoing long term savings. Watch our video to see more on this project.

Increasingly, batteries are playing a more important part in renewable energy, enabling you to purchase energy on much cheaper tariffs at off-peak times (often just 4-5p in comparison to the higher typical rates of 15-20p), which means you can store and use that power for your vehicle, home or business use during the day to offset more expensive power. In conjunction with solar, the business case looks even better as the solar panels can also charge up the batteries, helping to provide free energy at all times of the day. When you couple these benefits with the agile tariffs that are now available from ethical, green energy suppliers such as Caplor partner Good Energy, the savings continue to increase, particularly against the backdrop of record energy costs as highlighted earlier.

The fact is that we will all be using renewable energy at some point in the next 10-20 years. Many large organisations have already taken The Climate Pledge to reach net zero carbon emissions by 2040, but for many businesses there is every opportunity to achieve this target sooner. However, to achieve this we all have to start now. It is clear that businesses are now addressing social and environmental issues as part of their longer term strategies, not to mention the impact of ethical operations on client and staff recruitment and retention, so reducing environmental impact has now become an integral part of many organisations’ brand values, which is a clear step in the right direction.

Caplor Energy – Leading by example to secure a brighter future

As one of the first renewable energy businesses established and accredited with the Microgeneration Certification Scheme (MCS), the team at Caplor Energy are passionate advocates of renewable energy, with a mission to inspire businesses, communities and home-owners to install renewable energy systems that will help to deliver a zero carbon future to conserve and enhance the long term social and environmental future of our planet.

We have many years’ experience of specialising in the design, installation and maintenance of a wide range of renewable energy systems across the UK from solar PV and battery storage to renewable heating systems, solar thermal and electric vehicle charging. We’re award winning, ‘excellent’ rated on Trustpilot and committed to leading by example, with many renewable energy installations at our base at Caplor Farm in the beautiful Wye Valley. Our aim is to support all our customers through knowledgeable, unbiased advice, quality products and reliable service in our quest for a greener, more sustainable economy that will provide a better environment for our future generations.

For more information about Caplor Energy, watch our short video here.

Whether you’re interested in generating power from the sun, storing and offsetting energy with batteries, using heat pumps to keep your buildings warm or charge your electric vehicles, there’s a renewable way forward for your business to operate, with significant long term savings available whilst doing your bit to reduce the impact of climate change.

To find out more about what your business can do to save money whilst reducing your carbon footprint, talk to our team of specialists at Caplor Energy who will be able to give you clear, unbiased advice on the best solutions for you.

• https://www.bbc.co.uk/news/science-environment-58494641
• https://www.bbc.co.uk/news/world-58549373
•  https://solarenergyuk.org/news/135-mw-of-new-uk-solar-capacity-installed-in-the-second-quarter-of-2021/