What does net zero mean for businesses?
The UK has committed to becoming carbon neutral by 2050. This will mean changing the way we heat our buildings and power industry, and will demand significant investment across energy and transport infrastructures.
We will need to make fundamental changes across the public and private sectors if we hope to meet these ambitious decarbonisation commitments.
For many organisations, investment in decarbonisation has already begun. After all, a more sustainable approach to operations makes good commercial sense. For others, finding funding for renewable energy projects is proving more difficult.
What help is available on your journey to net zero?
Here, we will take a look at the renewable funding opportunities and green energy grants available to businesses that want to lower greenhouse gas (GHG) emissions and take their next steps towards a carbon neutral future.
The need to decarbonise is increasing due to direct consumer pressure, supply chain issues and climate change, so we will also explore how organisations from different sectors are responding and why sustainability is good for business.
The green energy grants available now
The UK government has made almost £5 billion of funding available to help UK businesses decarbonise their premises. Each clean energy grant will be available for different periods of time and will be awarded to businesses investing in green technologies to increase energy efficiency or reduce carbon emissions. A full list of past, present and forthcoming funding opportunities is available on gov.uk.
Energy Management Checklist
The energy management checklist can help you optimise your business’s energy use. It’s by no means definitive, but it is designed to provide you with additional guidance and useful pointers.
PPAs explained
Installing renewable energy generation on your site is costly and complex, with a strong but slow return on investment (ROI). If you have a requirement for quick ROI or cannot support the capital investment outlay, how do you move forward in the path to carbon neutrality?
Through a Power Purchase Agreement (PPA), you have the option to hand the project over to a third party expert who will fund, design and build the on-site generation asset. The third party will then sell the energy generated to you at an agreed price. They will own the asset, so you won’t be able to sell any extra energy back to the grid. However, you will be able to agree with them on a price, which is usually set for a minimum of 10 years. This will ensure energy security regardless of market volatility.
If your business decides to start its own capital infrastructure project and own the renewable asset, we can help you minimise your exposure to third party costs. Our team can monitor and maintain the asset, so you won’t need in house capabilities. In this case, any excess energy can also be sold back to the grid, to create a new revenue stream for your business.
Funding solutions by renewable technology
Whether you’re just starting on your next zero journey, or you’re well on your way, one of the most crucial decisions you will need to make is which renewable energy technology will be right for your business.
As part of the E.ON Group, we can offer access to a wide range of sustainable generation technologies that will give you secure supply and reduce your grid dependence as well your carbon footprint.
If you already have a renewable generation asset, why not download our guide to help you make the most of it?
Your starting point - the Net Zero Calculator
To plan for the future, you need a clear picture of the present situation. To calculate your current emission levels and find out the best ways to reduce them, you can try our Net Zero Calculator.
This is a user-friendly, interactive tool that helps calculate current emissions, forecast emissions from now to 2050, and assess the impact of different green technologies in reducing your energy costs and environmental footprint.
Watch our video to learn more about the calculator.
The difficulty of funding decarbonisation during the energy crisis
As ongoing economic uncertainty continues to create challenges for UK organisations, it’s possible that some will put sustainability initiatives on hold while more pressing financial needs are addressed. With 70% of businesses worried about the cost impact of carbon neutrality , what budget friendly options are out there?
Differing views on who should fund net zero
Recent research found businesses are optimistic about embracing carbon neutrality, but there is understandably concern about how the transition will be funded. Perhaps unsurprisingly, views on who should foot the bill vary according to who’s answering the question.
Investing while energy prices are rising
Energy consumers across every sector are feeling the pain of unprecedented rises in energy prices. Is investment in net zero a possible solution? Businesses can use green energy projects to increase resilience and reduce their exposure to energy price volatility, but it takes a longer-term outlook.
Net zero is fast becoming a collective priority across a range of sectors, and with less than thirty years to go before the UK’s 2050 target, fundamental changes are required across the board - from the way we heat our buildings to the cars we drive.
However, access to funding is cited as one of the major barriers to business investment in renewables projects and on-site generation. Discover what businesses told us about their future funding plans and how you too could shape an ambitious and practical net zero strategy for your business.
Many organisations are already generating their own power on-site, and their contribution could be crucial in reducing the UK’s reliance on imported natural gas.
Our new report, The Future of Energy: The critical role of business in a zero-carbon world investigates how businesses can support the UK’s transition to net zero while reducing their energy invoices.
Energy Security Plan
Department for Energy Security and Net Zero (DESNZ) publications March 2023
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