With one of the largest expenses for any business being the provision of energy, the current enthusiasm for all things “green” has translated into an increased demand for micro generation. This is the generating of renewable energy from many different natural sources. With the government encouraging both business and residential consumers to embrace the new technology in the form of grants the benefits of cheaper energy and reduction in the amount of greenhouse gases being emitted this should be a major consideration for every forward thinking business.
The feed-in tariff is designed to provide a financial crutch for low carbon electricity projects and will ensure that all surplus energy generated by the business will result in an export tariff whereby the business sells the excess energy to the electric company – if your business is covered by the CRC (Carbon Reduction Commitment) Energy Efficiency Scheme then this export tariff payment will be in the form of credits. Additionally the government guarantees payment to those businesses with microgenerators for electricity produced by renewable sources. This is an extra payment above the amount received from the electric company.
Whenever renewable energy is mentioned the first thing which usually springs to mind is by the placing of solar panels, which are often installed on a roof. However, although solar panels are extremely popular they aren’t, by any means, the only method of providing alternative energy. The huge wind turbines which are often situated in groups to provide large amount of power can be down-scaled to provide for a single business, with an excess which can be sold back to the energy company. Anaerobic digestion is the provision of converting garden waste, farm animal slurry and food processing plants amongst other businesses, into energy. The resultant products are biogas – methane and carbon dioxide – which is a close substitute for natural gas and digestate which is able to be used as a low level fertiliser. Anaerobic digestion has been used by the water industry for many years in the conversion of waste products into energy.
Another emerging source of renewable energy being implemented by businesses is biomass energy. This is a mixture of twigs and tree branches, dried grass and manure amongst other products. Biomass energy has a carbon neutral footprint. Biomass boilers are increasingly being ordered and installed by some large businesses, including supermarkets and together with the utilisation of solar panels can ensure a constant supply of heating and hot water. Ongoing costs are extremely low and the pellets used in the boilers are exceptionally cost effective. Local councils are now also requesting that architects suggest the provision of biomass boilers within new business premises.
The various alternatives within the renewable energy market are increasing rapidly and the benefits gained, both financially and ecologically are considerably more sustainable than the current mainstream business energy. These are major decisions which will affect your business for many years and the need for discussions with your energy broker is essential to establish the best way forward for your business.