April 8, 2024 Green Heat and Energy Efficiency, Making the Switch to Greener Heating
A Guide To Green Energy For Businesses
Transitioning to green energy is environmentally and commercially essential, but businesses are left to fend for themselves when the government offers little to nothing by way of support.
In the face of those daunting obligations, here are some of the opportunities and reasons to be optimistic about your business’s green energy transition.
So, what renewables are right for you, and how do you make sense of sustainability when the government doesn’t?
Green Energy: Legislation, Regulation, and Commercial Opportunities
Your legal requirements around carbon emissions depend on the size of your business. Large companies must report their carbon emissions, but smaller businesses do not have that obligation. In this context, a business will qualify as a large company if it meets at least two of the following criteria:
- gross income ≥ £36 million
- balance sheet assets ≥ £18 million
- 250 employees or more
If your business falls into that definition, you have an obvious incentive to reduce or eliminate your carbon emissions.
However, green energy is about more than avoiding fines — there are commercial opportunities as well.
How renewable energy supports your business growth
Aside from the cost savings of green power which free capital to invest in growth, heating and powering your business sustainably opens other opportunities for business development.
If you’re a large business, which will face more public scrutiny and media criticism for sustainable practice, you may find it increasingly difficult to win more business (or even avoid boycott) if renewable energy is not part of your strategy.
Smaller businesses may ‘fly under the radar’ by being less widely known, but PR is only one part of the commercial picture. You may not be at a size that requires carbon reporting, but your prospects and targets may be. Part of their reporting involves Scope 3 emissions (emissions from the supply chain). That means that if they work with you, your environmental impact becomes theirs, and they may prefer your competitor if that competitor is greener.
Whatever the size of the business, the story of your green transformation is a powerful message for prospects who care about the environment and their own impact.
Which green energy solutions make sense for your business?
If you want to end your dependence on fossil fuels, hit your ESG targets, and work towards becoming a Net Zero business, where do you start?
Green heat for businesses
If your premises are off the gas grid, you are likely to be using oil to heat your business. Aside from the eye-watering costs of running an oil boiler, your carbon emissions are around 5.2 tonnes for every 20MWh of power.
So, what are the options for sustainable heat for business?
Heat Pumps
The focus of the government’s messaging around green heat has been on heat pumps (albeit with an exclusively domestic focus). So, are they a viable business option too?
They certainly can be. There are factors to consider, however.
- Your building type
Heat pumps’ circulation temperature is lower than traditional heating, so they require a well-insulated building to operate effectively. Large and draughty premises may present a challenge.
- Your heating network
Because of the low circulation temperature, heat pumps need to radiate their heat from relatively large surface areas to warm an area.
- Your local climate
Because heat pumps draw heat from the air, the lower the temperature, the harder it has to work. Depending on the model, there could be low temperatures at which the pump won’t work at all, at the time when you need it the most.
Biomass boilers
Biomass is not always the right solution, but when it is, it’s the perfect solution.
A biomass boiler burns wood chips, wood pellets, or even logs to generate heat for your building. For off-grid buildings, especially those that are old, large, or poorly insulated, biomass offers the reliability and efficacy of traditional fossil fuel heating systems, with the economy and sustainability of wood heat.
For a business with a large heating requirement, the savings from wood heat can be substantial when compared to heating oil. Then, there is the stability and predictability of biofuel prices, contrasted with the volatility of the fossil fuel market.
When it comes to the emissions from combustion, biomass measures extremely well against oil.
| Heating oil | Wood pellets (10% MC) | Wood chip (25% MC) | |
| Carbon emissions per 20MWh (tonnes) | 5.2 | 0.3 | 0.14 |
The bonus is that wood heat forms a carbon-neutral loop, so that your biomass emissions can be net zero.
Case Study: Dunkeld House Hotel
Location: Perthshire
Challenge: The hotel’s oil boiler was very old and highly inefficient, and couldn’t handle the full demand of the business. The owners had resorted to generating half of their hot water by electricity. Aside from the expense of running two ineffective heating systems, the expense of frequent repairs was placing a serious burden on the hotel’s finances.
Solution:
- Replace the oil boiler with an ETA Hack 500kW boiler and a large fuel store for wood pellets.
- Connect the new heating system was connected to the hotel’s existing heating distribution system.
- The installation caused minimal disruption to hotel operations.
Results:
- Fuel Savings: £113,000
- CO2 Savings: 196 tonnes per year
- Easy maintenance
- Reliable Heat
Installer: KES Group
Case Study: Colchester Zoo
Location: Essex
Challenge: Colchester’s ‘Green Zoo’ initiative required energy independence and carbon neutrality, while heating locations across 60 acres, including offices, guest facilities, and animal enclosures. Previous commercial biomass installers had disappointed the zoo, so it was mission-critical to install a more reliable commercial biomass heating system that facilities staff could maintain themselves, and that maintains good air quality.
The solution:
- Install 1 ETA ePE-K 120 boiler, 2 ETA ePE-K 180 boilers, and ETA PC50s boilers
- Fit each boiler with an electrostatic precipitator to prevent particulate emissions
- Remotely monitor and manage boilers’ efficiency
- Provide spare parts and train facilities staff in their installation
The results:
- ‘Green Zoo’ requirements met
- Reliable heat
- Self-sufficiency in energy systems
Installer: LC Energy
Case Study: National Trust, Sutton Hoo
Location: Suffolk
Challenge: Sutton Hoo is one of the National Trust’s most important and historically significant sites, and the Trust needed to heat its onsite museum and three holiday cottages. It was using Liquid Petroleum Gas (LPG) at great expense and with substantial carbon emissions, and needed an environmental and economical alternative. An additional requirement was that the new heating installation had to be visually sympathetic to the historic site as a whole.
Solution:
- Install an ETA Hack 200kW Boiler
- House the boiler in an unused listed outbuilding, disguise the producing flue as a chimney
Result:
Sutton Hoo site saves 250MWh of energy every year
Installer: East Green Energy
Green Electricity for Business
If you want to secure your independence from the electricity grid (and its volatile prices), and reduce or eliminate your emissions, then there is one realistic way of generating the power you need. That is Solar PV.
- Zero-carbon: solar power produces no emissions
- Simple and inexpensive to install – with minimal maintenance and life-cycle costs
- High ROI: the electricity that you generate is free, so your installation pays for itself
Realistically, not every business will have a suitable roof for Solar PV, but a survey will establish the viability of an installation, and any businesses will find they can benefit from solar power, such as manufacturers, warehouses, hospitality, and corporate headquarters.
How to invest in green business energy when there is no government support
In the days of the Renewable Heat Incentive (RHI), investing in green heat was almost easier than not investing. Now, there is nothing available to businesses by way of support schemes for the upfront costs of switching. Does that mean generating green power is unachievable? Fortunately not. Bear the following in mind when planning your green energy switch.
Boiler Upgrade Scheme
Though the boiler upgrade scheme is structured for the domestic market, and the support level is weak (£5,000 towards a biomass boiler) your business may be eligible. Be aware, you do need to own the building you would apply for, which many businesses do not.
Full expensing
In the Autumn Statement 2024, the chancellor announced that full expensing would be made permanent. You will be able to deduct 100% of the capital expenditure on your renewable energy installation from your pre-tax profits.
0% VAT
There is a 0% rate of VAT on the installation of energy-saving materials until 31 March 2027.
Return on Investment
Calculate the ROI and payback period of your installation to support budget proposals.
For expert help on the practicalities of choosing green business energy, contact Innasol on 01621 892613. Our nationwide network of fully trained and accredited renewable energy experts is on hand to offer no-obligation guidance on your business’s Net Zero transition.
