Empowering the future: why businesses should install solar and energy storage
So tariffs have decreased – here’s 7 reasons why businesses should still consider solar
#1 The imperative of decarbonisation
Despite reduced overall caps, Energy UK data revealed that accelerating the transition to net zero could boost the UK economy by £240 billion by 2050. Rolling back green policies earlier this decade added £9.8 billion to energy bills in 2022/2023, noted in a recent article by Current in a recent article ‘Energy UK: Net Zero is an Economic Opportunity’. Emma Pinchbeck, CEO of Energy UK, emphasised that failing to meet net zero will impose greater costs than the required investments. Most investment will come from the private sector, which needs regulatory and political certainty. Installing solar PV and energy storage can reduce carbon footprints and attract eco-conscious customers and investors.
#2 Solar comes second to food security
Energy Security Secretary Clair Coutinho emphasised the need for increased security and more rooftop solar installations, protecting agricultural land and considering the impact on local villages. The goal is to meet solar targets without compromising food security.
Centrica Business Solutions reported that 56% of UK businesses plan to increase onsite generation in the next two years. Their report found that 34% experienced limited growth due to unpredictable energy costs. The main drivers for investing in onsite generation are mitigating market volatility (40%), transitioning to Net Zero (39%), and increasing profitability (38%).
#3 Solar offers long-term cost benefits
Although energy prices have fluctuated, their historical context is crucial. Previously, low prices made exploring alternative energy sources less urgent. However, surges due to global economic factors, geopolitical tensions, and supply chain disruptions revealed the risks of relying solely on traditional energy sources. Even with current price stabilisation, future volatility remains a concern. Solar PV and energy storage offer a hedge against price hikes, ensuring long-term cost stability and savings. Though initially costly, these installations typically pay off in 4-6 years, providing stable, clean energy and protecting against future tariff increases.
#4 Energy independence and security
The energy crisis underscored the importance of energy independence. By generating their own power, businesses can reduce dependence on external energy suppliers and insulate themselves from market fluctuations. Energy security is crucial for business continuity, especially in industries where power disruptions can lead to significant operational and financial losses. Solar PV coupled with energy storage provide a reliable and resilient energy solution, minimising the risk of outages and ensuring uninterrupted operations. Energy storage complements solar installations by storing excess energy for use during peak demand periods or at night, enhancing energy security and reliability.
#5 Consumer, procurement and investor choice
According to a 2023 McKinsey study, consumers care about sustainability—and back it up with their wallets. For businesses producing goods that form part of the retail supply chain or global trade, embracing sustainability is crucial to ensuring their future viability.
As society increasingly demands sustainable economies, this sets the tone for future business, politics, and legislation, according to Deloitte. Concerns and regulations stemming from sustainability potentially affect all aspects of global trade, from raw materials to final goods, as well as business partners and suppliers across the entire value chain. As sectors rely more on Environment, Social, and Governance (ESG) frameworks due to international consumer, procurement, and investor pressures, adopting renewable energy solutions becomes a strategic step in the right direction.
The sentiment towards sustainability and decarbonisation is echoed by 62% of UK adults, who believe that the country should reduce fossil fuel usage and increase reliance on renewable energy to enhance energy security.
#6 Funding the future – financial incentives and support
The UK government and local authorities offer financial incentives, grants, and subsidies for renewable energy projects, significantly reducing initial costs. Programs like Feed-in Tariffs (FiTs) provide ongoing financial returns for generating renewable energy. The Public Sector Decarbonisation Scheme, funding over 1,000 projects since 2020, will invest millions for energy efficiency upgrades like solar panels and insulation. Lord Callanan emphasised the £557 million allocation to support public and business sectors in achieving net zero. A 2023 Neos Networks report highlighted the urgent need for upgrades in 91% of public buildings to meet net zero goals.
#7 Regulatory compliance and future-proofing
The regulatory landscape is continuously evolving, with increasing emphasis on reducing greenhouse gas emissions and promoting renewable energy. By investing in solar and energy storage solutions now, companies can ensure compliance with current and future regulations, avoiding potential penalties and ensuring they are ahead of the curve in adopting sustainable practices.
The upcoming UK elections on 4 July could have significant implications for the renewable energy industry. Political support for climate change initiatives and renewable energy policies can influence the level of investment and regulatory framework for solar and energy storage projects. Companies that invest early can position themselves advantageously, regardless of political changes, by aligning with broader societal goals towards sustainability and climate change mitigation.
Let’s partner up - solutions for sustainable power
While energy prices have stabilised, the strategic benefits of installing solar PV and energy storage systems remain compelling for UK companies. Long-term cost savings, energy independence, enhanced corporate image, financial incentives, regulatory compliance, and improved resilience are critical factors that make this investment worthwhile. Additionally, the potential political shifts in the upcoming UK elections highlight the importance of proactive investment in renewable energy to align with future policy directions and societal expectations. By embracing solar energy now, companies can secure a sustainable and resilient energy future.
At RenEnergy, we’ve been trusted by our clients in the UK since 2006, building long-standing partnerships and evolving their solutions when their requirements change. We have a team of consultants, designers, engineers, procurement professionals and installers that work together to ensure your solution is of the highest possible quality.
Unlocking the full potential of solar energy requires more than just technology – it demands expertise. Our extensive intellectual property and thorough understanding of solar applications give us a competitive edge in the market. Choose experience. Choose innovation.