Investing in a greener future
Businesses and public sector organisations looking to cut their fuel bills by investing in new technology will soon be able to take advantage of a range of green energy finance deals
nvesting capital into energy tech- nologies that will bring savings for years to come may seem like a wise business move, but the reality is that many operators are too focused on simply keeping their facilities run- ning in these challenging times. As the UK emerges from an eco- nomic downturn, businesses that can find ways of investing in new technolo- gies will be in a stronger position, as many of their competitors will be more focused on the ‘here and now’ and not on making long-term gains. However the energy investment land- scape is changing, and with the help of new government and private sector initiatives, businesses will be able to access green technologies and make significant savings on energy bills with little or no investment up front.
Which of the following do you you most look for from your energy supplier? Rank top three
1st Help reducing our consumption 2nd Competitive contract price
3rd Expertise in monitoring and managing our infrastructure and energy consumption
4th A supplier with scope to meet our supply needs as well as offer broader energy services (e.g. energy monitoring & management)
5th Support in meeting our legislative obligations
THE GREEN DEAL At the heart of the government’s energy efficiency push is the Green Deal, which was introduced to Parliament in December 2010 as part of the Coalition’s Energy Bill and will take full effect in 2012. This new financing deal will offer businesses, through ‘provider’ suppli- ers like British Gas, a wide range of energy efficiency improvements, the cost of which will be recouped through savings made over an agreed period by means of instalments on the custom- er’s energy bills – what is known as 'the golden rule'. Also, the cost of any installation will remain with the prop- erty, not the current tenant or owner. While new-build leisure facilities may well have many energy-saving technol- ogies incorporated, the Green Deal will be an unprecedented opportunity for smaller leisure businesses – many of whom have high-energy consumption – to upgrade ageing stock, save money and improve the environment of their facilities for customers and staff alike. Well in advance of the Green Deal, British Gas is introducing Energy Performance Contracts (EPCs) – a results-based method of procurement and financing suitable for larger busi- nesses and the public sector. The drivers are already there for custom- ers needing solutions now, and include energy cost, CSR and legislation. Energy Services companies will install energy efficiency kit and serv- ices into businesses with a guarantee of cutting a certain percentage of
energy consumption over a defined period. For the customer, the savings made will always be greater than their overall investment. If targets are not met as part of the whole energy bun- dle, the energy supplier bears the loss, not the business. “When those targets are met, it’s a win-win situation,” says Mike Chessum, head of Energy Solutions at British Gas Business.
Are you aware of the Green Deal for businesses, coming into effect next year?
YES 35% NO 65% “The EPC is a bundled solution of
energy efficiency measures, offering a holistic solution to a firm's energy needs. Depending on the customer’s drivers, this may include energy effi- ciency services, products, renewables, strategy and awareness campaigns. “At British Gas we have expertise
across the energy services spectrum and can provide a solution tailored to individual businesses using the right tools for the job,” he says. With the announcement of the
Green Deal came the prediction from Secretary of State for Energy, Chris Huhne, that there would be an almost ten-fold rise in employment within the energy sector from 27,000 to 250,000 over the next 20 years.
Find out more: www.britishgas.co.uk/business
0845 955 5820
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