The business case for cleaner energy

The old adage used to state there were two halves to an energy bill: how much you use and how much each unit costs.

But as we power towards a cleaner energy system by 2030 of the UK – and align with market and policy measures to accelerate that progress – there is a growing third element: how much you can generate yourself.

To reach these ambitions, over the next five to six years we will need to see a five-fold increase in flexibility in the system, a four-fold increase in the number of battery storage units hooked up to the grid, alongside significant growth in wind and solar.

Increasing the volume of renewable generation and electricity storage is key to this – and independent generators, as well as businesses, have an important role to play.

A huge 80% of larger business customers surveyed for npower’s Voice of Generators 2024 report found independent energy generators will play a vital role in the low-carbon transition by helping the UK achieve its energy security and net zero ambitions.

npower Business Solutions, powered by E.ON, has set out some of the steps businesses can take to get the best return when installing generation or storage assets as part of the UK’s transition to clean energy.

Michelle Stephens, Generation Services Sales Manager at npower Business Solutions, says installing generation or storage assets requires significant investment, which means getting the best return on that outlay is vital.

“Whether it’s reducing overheads, gaining exemptions from non-energy costs, or maximising the returns you get from generating or storing power, there are a range of options for businesses looking to get active in this sector – and navigating these can make a big difference to your income.”

Michelle’s advice includes:

1. Take necessary steps to reduce your overheads – for example by taking advantage of exemptions that can help independent generators avoid a significant share of the non-energy elements added to electricity invoices (such as network and transmission costs)
2. Review your export arrangements to reflect the often-volatile conditions in the energy market.
3. Access the market in the most effective way for you – whether that is a fixed, flexible or index-linked deal which can make a big difference to your income.

You can read more from Michelle in her blog here.

To find out more about taking advantage of new types of contract for 5GW of export or more – including features and support to make it easier to maximise income get in touch with one of nBS’s Generation Services experts.