4 Renewable Energy Generation Methods for Businesses

In today’s world, where environmental concerns and sustainability are at the forefront, harnessing renewable energy sources has become paramount. As businesses strive to reduce their carbon footprint and contribute to a greener future, integrating renewable energy into their operations has proven to be an effective strategy. In this article, we will explore various ways your business can power itself using renewable energy, ranging from solar and wind power to geothermal and biomass solutions. By embracing these clean and sustainable energy alternatives, you can not only reduce your environmental impact but also reap numerous financial and reputational benefits.

Types of Renewable Energy Generation Methods

Renewable energy is derived from sources that are naturally replenished, such as sunlight, wind, geothermal heat, and biomass. Unlike fossil fuels, which contribute to greenhouse gas emissions and environmental degradation, renewable energy sources offer a cleaner and greener solution for meeting our energy needs. Let’s delve into different types of renewable energy sources and the technologies that can help power your business.

1. Solar Energy: Solar power is one of the most popular and accessible forms of renewable energy. By installing solar panels on your business premises, you can harness the sun’s rays to generate electricity. Solar energy systems convert sunlight into electricity through photovoltaic (PV) panels or use sunlight for water heating. Additionally, excess electricity generated can be fed back to the grid, allowing you to offset your energy consumption and potentially earn revenue.

Schemes available for Solar Energy:

• Feed-in Tariff (FiT): The Feed-in Tariff scheme provides financial incentives to businesses that generate renewable energy, including solar power. Under this scheme, businesses can receive payments for the electricity they generate, as well as for any surplus energy they export back to the grid. However, it’s worth noting that the FiT scheme closed to new applicants in March 2019, although existing participants can continue to receive payments.
• Smart Export Guarantee (SEG): The Smart Export Guarantee is the replacement for the FiT scheme. It requires larger energy suppliers (with over 150,000 customers) to offer a tariff for small-scale low-carbon electricity generators, including solar PV systems. Under the SEG, businesses can earn money by exporting excess electricity to the grid.
• Renewable Energy Guarantees of Origin (REGO): REGO is a certification scheme that provides proof of the origin of electricity generated from renewable sources. By obtaining REGO certificates, businesses can demonstrate that their electricity supply comes from renewable sources, including solar power.
• Solar Purchase Power Agreements (PPAs): PPAs allow businesses to enter into long-term contracts to purchase solar electricity directly from solar energy providers. This arrangement provides businesses with a stable and often lower-cost source of renewable electricity, while solar providers benefit from guaranteed revenue streams.
• Government Grants and Funding: The UK government occasionally offers grants and funding programs to support businesses in adopting solar power and other renewable energy technologies. These programs aim to incentivize the installation of solar panels by providing financial assistance or low-interest loans.

2. Wind Energy: Another prominent renewable energy source is wind power. Utilizing wind turbines, businesses can generate electricity by harnessing the kinetic energy of the wind. Wind turbines consist of large rotating blades that convert the wind’s energy into mechanical power, which is then converted into electrical energy. Installing wind turbines on your property, especially in areas with consistent wind flow, can provide a significant renewable energy source for your business.

Schemes available for Wind Energy:

• Contracts for Difference (CfD): The Contracts for Difference scheme is a competitive auction-based system that provides long-term contracts to renewable energy projects, including onshore and offshore wind farms. Successful projects receive a fixed price for the electricity they generate, providing stable revenue streams and encouraging investment in wind energy.
• Renewable Obligation (RO): The Renewable Obligation is a government support scheme that requires electricity suppliers to source a certain percentage of their electricity from renewable sources, including wind energy. Renewable Obligation Certificates (ROCs) are issued to eligible wind projects, and suppliers must obtain and surrender these certificates to demonstrate compliance.
• Smart Export Guarantee (SEG): Similar to solar power, the Smart Export Guarantee also applies to wind energy generation. Larger energy suppliers are required to offer a tariff for small-scale low-carbon electricity generators, including wind turbines. Businesses can earn money by exporting excess electricity generated by wind turbines to the grid.
• Feed-in Tariff (FiT): Although the Feed-in Tariff scheme closed to new applicants in 2019, existing wind energy projects that were accredited before the scheme closed can still receive payments for the electricity they generate. This scheme provided financial incentives for smaller-scale wind installations.
• Government Grants and Funding: The UK government occasionally provides grants and funding programs to support the development and installation of wind energy projects. These programs aim to incentivize investment in wind power and can offer financial assistance or low-interest loans to businesses.

3. Geothermal Energy: Geothermal energy harnesses the Earth’s natural heat to generate power. By tapping into the heat stored beneath the Earth’s surface, geothermal systems can produce both electricity and heat for various applications. Geothermal power plants use steam or hot water from deep underground to drive turbines, generating electricity. Geothermal energy systems can also be utilized for heating and cooling purposes, offering businesses a sustainable and cost-effective solution.

Schemes available for Geothermal Energy

• Heat Networks Investment Project (HNIP): HNIP is a government initiative aimed at supporting the development of low-carbon heat networks, including those powered by geothermal energy. The project provides funding and financial incentives to businesses and organizations involved in the planning and construction of heat networks using renewable heat sources.
• Non-Domestic Renewable Heat Incentive (RHI): The Non-Domestic Renewable Heat Incentive scheme offers financial support to businesses and public sector organizations that generate and use renewable heat sources, including geothermal energy. This scheme provides long-term payments based on the heat output of eligible installations, helping to offset the costs of implementing geothermal heating systems.
• Geothermal Regional Investment Programme (GRIP): GRIP is a government-funded program that aims to accelerate the development of geothermal projects across the UK. It provides financial assistance and support for businesses and developers engaged in exploring, testing, and deploying geothermal technologies.
• Local Authority Delivery Scheme (LADS): LADS is a funding scheme that supports local authorities in developing low-carbon energy projects, including geothermal energy. It provides financial assistance for feasibility studies, project development, and deployment, encouraging local authorities to explore geothermal resources and develop geothermal heat networks.

4. Biomass Energy: Biomass refers to organic matter such as wood pellets, agricultural waste, and dedicated energy crops. These materials can be burned to produce heat or converted into biogas for electricity generation. Biomass energy is considered renewable because the organic matter used in the process can be replenished through sustainable forestry practices and agriculture. Businesses can install biomass systems to generate heat, power, or combined heat and power (CHP), which simultaneously provides heating and cooling.

Integrating renewable energy into your business operations brings numerous benefits:

• Environmental Impact: By reducing reliance on fossil fuels, businesses can significantly lower their carbon dioxide emissions and contribute to mitigating climate change. Renewable energy sources produce little to no greenhouse gas emissions during operation, minimizing their environmental impact and preserving natural resources.
• Financial Savings: Generating your own renewable energy can lead to substantial cost savings in the long run. While upfront installation costs may be involved, renewable energy systems typically have lower operational and maintenance expenses compared to traditional energy sources. Moreover, certain regions offer incentives, grants, or tax credits for businesses adopting renewable energy solutions, further enhancing the financial benefits.
• Energy Independence and Security: Relying on renewable energy sources provides businesses with greater energy independence and security. Unlike finite fossil fuel reserves, renewable energy resources are widely available and accessible. By generating your own renewable energy, you can mitigate the risks associated with fluctuating energy prices and potential supply disruptions.
• Positive Brand Image: Embracing renewable energy aligns your business with sustainability goals and demonstrates a commitment to environmental responsibility. Consumers and stakeholders increasingly value companies that prioritize clean and green practices. By integrating renewable energy into your operations, you can enhance your brand’s reputation and attract environmentally conscious customers.
• Energy Efficiency: Adopting renewable energy often goes hand in hand with improving energy efficiency. Businesses can implement energy-saving measures, such as LED lighting, efficient appliances, and insulation, in conjunction with renewable energy systems. This combination maximizes energy optimization and reduces overall energy consumption, leading to further cost savings and environmental benefits.
• Diversification of Energy Sources: Depending solely on traditional energy sources, such as fossil fuels, can expose businesses to price volatility and supply uncertainties. By diversifying your energy sources with renewables, you can reduce your reliance on non-renewable energy and create a more resilient energy portfolio.
• Compliance with Regulations and Standards: Governments and regulatory bodies worldwide are increasingly implementing measures to promote renewable energy adoption and reduce carbon emissions. By integrating renewable energy into your business, you can ensure compliance with existing and future regulations, avoiding potential penalties and staying ahead of sustainability requirements.
• Innovation and Technological Advancement: The renewable energy sector is constantly evolving, with ongoing advancements in technology, efficiency, and scalability. By embracing renewable energy, businesses can position themselves at the forefront of innovation and capitalize on emerging opportunities within the clean energy market.