‘Commercial payback is the number one reason why businesses choose renewable heat like biomass’
There are three key reasons why senior estimators, commercial directors or heads of sustainability come and talk with us about renewable energy, like biomass in their building.
One of those reasons is: They want to see a financial benefit and payback to the business.
Regardless of what sector the business is in, at the end of the day everyone wants to save money where they can and cut costs where applicable – one unavoidable cost easy to cut down on is energy. This is because operating costs like energy are one of the largest costs on a business’s profit and loss statement. Fossil fuels are unreliable in terms of costs, and certainly on reliable in the long run, and often business decisions are made in favour of renewable energy because of its longer term payback, and assurance. Renewable energy will not only improve your environmental credentials in business, which is often a brand attribute, core competency or value of the organisation, but gives you stable energy costs for the future.
Payback in renewables happens in various ways, from reduced tenant churn (proven to be more likely in greener buildings) as well as increased resale price for the property in the future (proven in USA and UK commercial building pricing studies). Payback, some companies also like to count is on the triple bottom line, especially if carbon credits is relevant in your industry – like manufacturing, technology, construction or retail.
When investing in renewable technologies you are guaranteed to lower operating costs therefore putting money back into the piggy bank of the business. In addition, academic experts found that there is a positive relationship between the energy efficiency rating of a property and the transaction price per square metre. Essentially this means installing a renewable heating solutions – such as a biomass boiler or heat pump which can increase the value of a property. To read more about quality in renewables click here.
Renewable costs may seem daunting or risky to some but renewable technologies aren’t only more reliable economically but also financially too, so you can plan long term for your business without the worry of the never ending inconsistencies of fossil fuel prices. This will also add strength and value to your brand, and even help to raise brand awareness. As we see, social conscience, especially around traditional business, is slowly becoming more top of mind for various consumer segments, if this relates to you, it is something to be able to invest in and return in image easily.
Currently we in the United Kingdom, are lucky enough to have financial support from the Government so businesses can factor that into budgeting with a generous quarterly payments from the Renewable Heat Incentive (RHI). RHI is what is making now the most attractive time ever to make the switch. The benefits don’t stop there – you can add fuel savings and huge CO2 reductions along with boosting green credentials.
In 2011 the official UK government statistic for rise in UK energy price was 17%, a recent energy report forecasts an average of 13% per annum for the foreseeable future – this level of uncontrollable cost increase makes it extremely difficult for businesses to remain competitive in the global economy, so it becomes key to help businesses within the UK thrive and reach their carbon targets and other sustainability goals with the added piece of mind of the super steady cost of wood fuel.
Furthermore in February 2013 OFGEM announced that the UK could experience electricity outages in the not too distant future, due to the phasing out of coal-fired power stations; with reliance on imported gas leading to continuing higher energy prices. OFGEM also advised that UK businesses should take action to protect themselves against likely energy price rises by investing in energy efficiency and on site power generation. To read more on this click here.
With INNASOL being the UK market leaders in the distribution of biomass boilers and heat pumps they are the perfect and obvious choice when it comes to boosting your environmental credentials and adding value to your property. To see how other businesses have benefited from green technologies and seen a financial gain and pay back, take a look at our case studies here.
If you want to see the other two reasons why senior estimators, commercial directors or heads of sustainability come and talk with us about renewable energy, like biomass in their building, see our next two points!
This is part of our 3 part series exploring renewable heat in commercial buildings through the eyes of >