The UK's ongoing energy crisis makes commercial solar power an eco-friendly, stable choice for businesses
The energy crunch
The energy crisis is due to continue for the foreseeable future. Wholesale gas price surges are still having a significant impact on businesses and energy firms across the country. The initial surge in wholesale costs stemmed from various factors, including the harsh winter of 2020/21 in Europe, increased global demand and supply disruptions due to political instabilities.
Adding to the complexity is the recent change in government support for non-household energy bills. The Energy Bill Relief Scheme, which provided financial support to business owners for their energy bills for six months starting from 1 October 2022, has been replaced with the Energy Bills Discount Scheme as of 1 April 2023. Importantly, neither of these schemes has price limits in place.
Furthermore, businesses are navigating an intricate landscape of fixed-rate energy contracts. Business owners must carefully assess their options and consider the financial implications of their decisions. Renewable energy sources, such as commercial solar power, offer the advantage of long-term price stability and align with environmental sustainability goals, making it a wise choice for businesses seeking stability and eco-conscious solutions amidst the ongoing energy challenges.
The cost of doing business
It’s a challenging situation, and it’s here where the proverbial double-edged sword comes into play.
The change in governmental support underscores the challenge facing businesses as they approach the end of their fixed-rate energy contracts. With volatile energy prices, businesses must carefully consider the financial implications of renewing these contracts. Accepting higher rates will have a direct impact on their bottom line and operational costs, making it a pressing concern for many.
On the other hand, many businesses opted for fixed-rate energy deals during the energy market peak of 2022. However, recent data from Cornwall Insight’s Delivered Electricity Cost Forecaster shows that they could be facing the possibility of their energy bills increasing by 133%. These figures, representing a worst-case scenario, underline how the combination of high wholesale prices at the time of contract fixing and a reduction in government support has left some businesses vulnerable to steep increases.
It has become increasingly important to explore how solar energy solutions can provide a buffer against rising energy costs and the operational impact of accepting higher rates. Solar power offers a multifaceted approach to addressing these concerns, including cost savings through reduced electricity bills, income generation through feed-in tariff schemes, long-term energy price stability and a greater degree of energy independence.
Solar simplicity, business prosperity
Commercial solar PV (photovoltaic) systems are at the forefront of renewable energy solutions available to businesses in the UK. These versatile solar generation and energy storage systems are designed to capture sunlight and convert it into electricity, providing companies with a reliable, sustainable and efficient energy source. They help businesses meet their energy needs while contributing to a cleaner and more sustainable future.
One of the prevailing misconceptions about solar energy in the UK is that its weather conditions hinder the effectiveness of PV systems. However, the reality is quite different. Solar panels do work best in direct sunlight, but they can also work on cloudy days and in partial shade. This is because (PV) panels use particles of light, called photons, to generate electricity. Photons are present in direct and indirect sunlight, so solar panels can operate in both conditions. The UK experiences a significant number of sunny days throughout the year, especially during the spring and summer months. During these periods, PV systems can produce surplus energy, which can be stored for later use. This energy storage capability further enhances the reliability and versatility of solar PV solutions, ensuring that businesses have a consistent source of clean energy, regardless of weather fluctuations.
With ever-improving technology and energy storage options, businesses can benefit from commercial solar energy year-round, reducing energy costs, minimising their carbon footprint and contributing to a greener energy landscape.
From sun to socket
With offices in the UK and South Africa, RenEnergy has developed expertise across multiple commercial solar PV applications. Our commercial solar solutions extend beyond conventional solar installations in diverse UK environments. We offer a comprehensive range of solutions tailored to meet your unique energy requirements, including ground-mounted arrays, rooftop installations, energy storage solutions, solar PV carports and electric vehicle (EV) charging infrastructures. Our process begins with a thorough understanding of your business, energy consumption patterns, current needs, future needs and the physical environment in which you operate.
Our deep understanding of technology and our 17 years’ experience are substantial differentiators with a barrage of new entrants into the commercial solar market.
The energy shift
As the energy landscape undergoes a seismic shift, it's only natural for business owners to feel the weight of uncertainty due to the changing tides of government support and the complicated web of fixed-rate energy contracts.
So, the message is clear: it’s crucial to recognise the immense potential for positive change and take control of your energy independence. It’s precisely these challenges that have become the catalyst for innovation. Businesses are not just adapting; they are thriving by embracing alternative avenues to secure their energy stability. With our experience and expertise, RenEnergy is the perfect business partner in this journey.