The Ultimate Guide to Renewable Energy for Businesses

Renewable, green energy is becoming more popular and more accessible, both for domestic and business use. But what makes energy green? And how can you introduce green energy to your business? Our Ultimate Guide to Renewable Energy for Businesses covers everything from basic definitions to the best way for you to switch. 

Fossil fuels are non-renewable forms of energy, made from naturally occurring substances found in the earth. These contain carbon and hydrogen, which can be burned to create energy. The three main types of fossil fuels are coal, oil, and natural gases.  

The problem with fossil fuels is that they are finite and non-replenishable, meaning that once they have been used, they cannot be used again, and we cannot create more. They are also large contributors to pollution, climate change and global warming.  

To help combat this, modern technologies have been developed to create a new type of renewable (also known as ‘green’) energy that will reduce our reliance on fossil fuels.  

Renewable, or Green, energy is derived from natural sources that can be easily replenished at a steady rate, such as wind, solar, biomass and hydroelectric. This means it has a minimal impact on the environment when compared to fossil fuels. Renewable business energy comes in many different forms, we’ve listed some of these below. 

Today, a significant proportion of the UK’s energy comes from renewable sources, with this figure increasing year on year. In 2023-2024, 39.5% of the UK’s energy came from renewable sources, with wind power making up the majority (29%), followed by biomass (4.9%), solar (4.5%) and hydroelectric (1.2%).  

These figures have increased by 28.8% in the last 10 years and are predicted to continue rising as the UK invests in more renewable energy systems and works towards its net zero targets. 

Solar Energy  

One of the most commonly used forms of green energy, solar energy involves using the power of the sun to generate electricity. It is captured by photovoltaic cells on solar panels, usually placed on the rooves of buildings where they are exposed to the most sunlight. The main drawback of solar energy is its dependency on weather conditions, location, and time of day.   

Wind Power 

Wind energy, or wind power, is collected through large wind turbines, which work by converting kinetic energy into electricity. The stronger the wind, the more energy the turbines collect, so they are often placed in high-wind areas such as the tops of hills, in open water, or between the gaps in mountains, to take advantage of naturally windy conditions.  

More recently, the invention of bladeless turbines has allowed wind turbines to become safer, with lower maintenance needed, whilst their sleek design and silent operation has reduced their impact on surrounding areas. 

Biomass 

Biomass is organic, renewable material from plants, animals, and wood. These biological items contain stored energy from the sun, which is then released when burnt. We can generate more biomass material through growing and harvesting more material. However, it is not considered the most environmentally friendly method of renewable energy, as CO2 is still released when matter is burnt. Though this is much less damaging than the burning of fossil fuels, other forms of renewable energy are considered ‘cleaner’. 

Hydro Energy 

Hydro energy uses the power of moving water to create energy. This is done by building a dam or barrier that moves the water into a reservoir, which then directs the flow of water to drive a turbine and generate electricity. 

Geothermal Energy 

Geothermal energy uses natural heat from below the Earth’s surface from sources such as underground reservoirs. This is often done using steam produced by hot water to drive turbines, generating electricity. In some cases, the hot water itself can also be used for heating purposes.  

As the name suggests, renewable energy is a better option as it does not run out and has a lower impact on the planet. This is because it is derived from natural resources, causing a lot less damage to the environment.  

It is also easier for homes and businesses in remote areas to generate their own renewable energy, which they may not otherwise have had access to.  

In terms of business-specific benefits, adopting a greener approach to energy can have a positive effect on brand image. Global warming and climate change is a major topic of conversation and poses significant threat to our future. Consumers are now more conscious of their purchasing habits and want to give their custom to businesses that share their sustainability values and care about the planet. By using renewable energy for your business, you can show your commitment to protecting the planet, appealing to both new and existing customers. 

If you are considering switching your business to green energy, there are a range of options to choose from, as a well as a wide range of benefits you can reap.  

Environmental sustainability  

By using renewable business energy, whether this is generated by yourselves, or through your provider, not only will you be adhering to corporate social responsibility, but you will actively be doing your bit to promote a more sustainable way of operating.  

Public image  

Running your business on renewable energy will make your business more attractive to green-minded customers. According to a recent survey, 4 out of 5 people surveyed said that they would be more likely to support a business with a positive approach to environmental sustainability.  

Employee Satisfaction  

It’s not just customers that you’re likely to impress with a greener attitude; Frontiers of Psychology Journal found that ‘79% of millennials consider a company’s environmental commitments when deciding where to work’.  So, if this is a demographic that makes up part of your workforce, or if you’re looking to hire more people of this age group, increasing your sustainability in order to attract new applicants may be something you want to consider. 

Government Incentives 

As part of the UK government’s Net Zero goals, they have invested £5 billion into helping UK businesses become greener by introducing a number of incentives designed to encourage the adoption of renewable energy. These include tax breaks, loans for installing renewable infrastructure and other financial incentives.

The reliability of renewable energy overall is not dependant on a single source, but on multiple channels. As renewable energy sources are often dependent on factors such as weather, location, and seasonality, there is no guarantee that a regular amount of energy will be generated by a single source at all times. Similarly, demand for energy fluctuates. For example, there is less demand at night or in the summer; when weather is warmer, days are longer, and heating and lighting is used less.  

However, to help combat this fluctuation in demand, renewable energy generators will often store any excess energy collected during periods of low demand and use them when demand is higher than the rate of generation. It is also common for multiple renewable energy sources to be used together, so when one source falters, another can pick up the demand. Whilst at the moment renewable energy still needs to be backed up by traditional sources, the UK is showing a steady increase in the amount of renewable energy generated each year. 

The rise of Electric Vehicles (EVs) is hard to ignore, with over 840,000 EVs on UK roads today, and 66% of them registered to businesses. This number is only apt to go up, and for good reason.  

EVs offer an efficient, reliable alternative to traditional fossil-fuel dependent vehicles. They are not required to pay Clear Air Zone tax and offer peace of mind for the planet with zero tailpipe emissions.  

What’s more, with some chargers, EVs can be charged using your power supply, so if your energy comes from a renewable source, such as one of our green energy plans, not only will you be boycotting fuel emissions, but you’ll also be running your vehicle in the most environmentally friendly way possible. 

If you think EV’s might be the right fit for you, you can find out more about EV installation for businesses.

Though still relatively new, green energy technology and infrastructure is constantly growing and evolving. Currently, renewable energy makes up around, 26% of the world’s electricity, with this figure expected to grow in coming years. 

Whether we can move to 100% renewable energy across the world is still up for debate, though it is defined as a global goal by 2050.  What it is clear to see, is that it isn’t going anywhere, with many businesses working towards carbon neutrality and a more sustainable way of working. 

We offer REGO backed Green Business Electricity plans so businesses can benefit from 100% certified renewable electricity. 

The Renewable Energy Guarantee of Origin scheme (also known as the REGO scheme) is a scheme administered by Ofgem that gives consumers transparency about the proportion of electricity that energy suppliers source from renewable generation. 

Energy suppliers are issued one REGO certificate per megawatt hour (MWh) of eligible renewable output that they source from generators of renewable electricity. This provides proof to the customer that the energy was produced through renewable sources. 

We also offer  carbon neutral gas plans, to boost your sustainability even more. The projects we support through our green gas sales have already reduced or removed nearly one billion tons of carbon emissions from our atmosphere.  

Ready to go green? Get a quote for renewable business energy today!