With climate change at the forefront of most peoples’ minds, the idea of switching to renewable energy sources that promise to cut energy bills and enhance the image of a business is an attractive proposition.
Pressure is growing for businesses to become more sustainable and carbon friendly as a matter of urgency, pushing them to act more responsibly when it comes to the environment.
But before installing any type of renewable energy technology, there will be things to take into consideration, something the experts at Ecomech know all about. These include planning permission and connection requirements, a renewable energy site survey and adhering to regulatory and legal obligations.
When planning the installation of any type of renewable technology, businesses need to be aware that it will take a number of years to produce any tangible return on investment. Because of this, it is recommended that the business premises is owned outright or has a long-term lease to ensure that the investment is worthwhile.
What are the renewable energy options?
This depends on location and how much the organisation is willing to invest. Options include wind turbines, solar PV panels, solar thermal energy, biomass systems, geothermal or ground source heat pumps, a combined heat and power system (CHP) and hydroelectric power.
Amazon Warehouse Lighting
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam ipsum dolor sit amet, consectetur adipiscing elit.
How much will renewable energy installations cost?
- Wind power– Varying from £10,000 for micro turbines (2.5-6kW) and £3.3 million for large turbines. Small turbines (20-50kW) can take eight to 15 years to pay back and large turbines (1MW-2.5MW) can take one to five years.
- Solar PV panels– Cost £5,000-£10,000 for small systems and are estimated to take six to ten years to pay back.
- Solar thermal energy– £3,000-£5,000, meaning approximately five years to pay back.
- Biomass systems– Cost varies but is estimated to take five to 12 years to pay back.
- Geothermal and ground source heat pumps– £11,000-£15,000, payback is around 15 years.
- Combined heat and power– £32,500, taking 10 and a half years to pay back.
- Hydroelectric power– £4,000-£8,000 per kW. An 8kW hydroelectric power plant will takes seven years to pay back.
Are there funding options to help with renewable energy installations?
To help with costs, various incentives have been put in place by the Government to make the energy saving and renewable focused approach more attractive to all sized businesses and funding options help with the initial costs of commercial renewable energy installations. These include the Renewable Heat Incentive, Enhanced Capital Allowances, The Green Deal, Salix Finance, Power Purchase Agreement and Lease Purchase Agreement. It is also possible to use a business loan or fund the installation privately and then claim back the government subsidy rewards over 20 years.