By Kevin Ball, Chief Commercial Officer at Wattstor
While the UK is moving ever closer to its clean energy and net zero targets, the publication of ‘Clean Power 2030’ by the National Systems Energy Operator (NESO), highlighted the scale of the renewable energy challenge. It concluded that, while the government’s 2030 target was achievable, it would require a significant amount of investment and a major reform of our energy system.
That is why public and private sector organisations across the country will play an important role in helping to achieve these targets. And, importantly, there is a huge public expectation that they will lead the way.
However, we recently conducted research of more than 2000 UK consumers, which revealed that over half (56%) believe that businesses need to step up their sustainability efforts to help achieve the country’s net zero targets.
The research also showed that a significant majority – 70% – believe that businesses should face serious repercussions if they don’t take sustainability seriously.
In fact, one in three (30%) respondents said that they strongly felt that the government should hold companies accountable if they don’t meet net zero targets. In addition, one in four (43%) consumers believe that businesses should have all or most of the responsibility for achieving those targets.
It also revealed some scepticism about whether net zero was achievable, with half (50%) saying they don’t believe the target will be met, and nearly one in five (19%) unsure.
That said, the research demonstrated the potential commercial advantage for those businesses who do invest in sustainable solutions. More than two-thirds (69%) of respondents said that a business’ approach to sustainability and use of renewable energy was a key factor when choosing to buy from them.
This is a really important point and should be a key factor in making sustainable investment decisions.
However, a well-documented risk is the delay in securing grid connections, in particular for large generation and storage projects, which threatens the UK’s renewable goals. Similar constraints are found in generation capacity which are also hindering economic growth. It’s this aspect that is slowing down the momentum for businesses to make the switch to clean energy and operate more sustainably.
This is where onsite renewable generation can play an important role.
Building the business case for onsite renewable energy
An increasing number of businesses are exploring the installation of onsite renewable generation and storage. The business case is compelling, as it is a proven way to reduce energy costs, manage carbon emissions, and take advantage of energy price volatility.
For more than two years, the volatility in the wholesale energy markets has been a huge issue for businesses, becoming a major risk factor. Onsite generation helps to mitigate this risk, removing the reliance on the wholesale markets and providing much-needed cost certainty.
The recent NESO report outlined two pathways to achieving clean power by 2030 – Further Flex and Renewables’ and ‘New Dispatch’ – and launched a consultation on its plans to reform the connections process, which it says will “reduce and reorder the queue by prioritising ready projects as well as aligning to locational, and technology needs for the future energy system.”
However, these changes will take a while to come to fruition, which is where onsite renewable generation can be the missing piece of the jigsaw.
For example, installing an advanced DC coupled solar and battery system enables businesses to generate and manage their own energy, and connect 4x – 5x more solar capacity on their premises than the generation capacity typically allowed on the local network. This reduces grid dependence and offers a path towards net zero by maximising onsite renewable deployment.
By storing excess energy and using it onsite, businesses can continue reducing emissions, cutting costs, and enhancing their energy resilience. Furthermore, a well- designed battery system can also provide back-up power in the event of grid failure, enabling businesses to do away with standby diesel generators.
Perhaps most importantly, there is a clear commercial incentive to invest in onsite renewable energy in terms of winning new customers and increasing customer loyalty. This research highlights that consumers want to buy from responsible businesses and have said that it is a key consideration when choosing where they spend their money.
Playing your role in net zero
Our research gauges the expectations UK consumers have when it comes to businesses and net zero. While many companies are already taking it seriously, the results of our survey show that more can be done, particularly when the public believes that businesses should be taking a leading role in the UK’s decarbonisation journey.
At the end of the day, for those businesses that have capacity for an onsite renewable energy system, it therefore not only makes environmental sense. It makes commercial and reputational sense too.
The full report is available here.
This article appeared in the Jan/Feb 2025 issue of Energy Manager magazine. Subscribe here.