The case for renewables in UK business

Quantifying financial benefits for businesses generating their own renewable energy.

Information in this report was correct at the time of publication

Publication date: September 2011

Analysis carried out by the Carbon Trust indicates that there is a strong case for businesses to produce their own renewable energy. Historically, the business case for this class of technology was weak, but now offers the potential for returns in excess of 20%. Acting early to secure income from these incentives is key.

The report analyses:

  • Key drivers for renewable investment - including financial incentives, energy security, cost reduction, planning regulations, brand and CSR benefits
  • New drivers, financial returns and take-up
  • Strategic and tactical issues - determining appropriate renewable energy measures and managing implementation considerations

A number of new drivers are combining to make renewable energy measures viable for UK businesses, in many cases, for the first time.  New incentives, energy market trends and building regulations have transformed the returns available to UK businesses from generating their own renewable energy.

In March 2011 the Government announced a new £860m support mechanism, the Renewable Heat Incentive (RHI) to work alongside the existing Feed in Tariff (FiT) regime. These new incentives and other regulations have increased the returns from renewable energy, making renewables a key way to combat energy costs.

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