In recent years, many companies and institutions have been exploring the option of generating their own energy on-site, rather than relying on the national grid for their power supply. Onsite power generation can take a number of forms, from solar panels and wind turbines to fuel cells and biomass plants. There are many benefits to generating your own energy, including cost savings, environmental benefits, and increased energy security. However, there are also some drawbacks and factors to consider when making the decision to generate your own energy.

So, let’s start with the basics.

What is onsite energy generation?

Onsite energy generation for businesses refers to the practice of generating electricity on the premises of a business or commercial facility, rather than relying solely on the national power grid. This can be done through various means, such as installing solar panels, wind turbines, or other forms of renewable energy technology, as well as using generators or fuel cells.

The generated energy can be used to power the business’s operations, and any excess can be sold back to the grid. Onsite energy generation can offer a number of benefits, including cost savings, greater energy independence, and reduced environmental impact.

How can companies generate their own renewable energy onsite?

In the UK, companies have a variety of options to generate their own energy onsite.

Here are some of the most common methods:

1. Solar power: One of the most popular methods of onsite energy generation is through solar panels. These panels convert sunlight into electricity, which can be used to power the business. The cost of installation can vary depending on the size of the system, but it is generally a cost-effective solution with low maintenance requirements.
2. Wind turbines: Another renewable energy option is to use wind turbines to generate electricity. Wind turbines work by capturing the kinetic energy of the wind and converting it into electrical power. While the initial cost of installation can be high, the long-term benefits of using wind power can be significant.
3. Biomass: Biomass involves burning organic materials such as wood or waste products to generate heat or electricity. This method is suitable for businesses that produce a lot of waste or have access to renewable fuels. The cost of installation can be high, but the fuel costs are low.
4. Combined heat and power (CHP): CHP systems generate both heat and electricity using a single fuel source. This method is highly efficient, as it uses the waste heat produced by the electricity generation process. The cost of installation can be high, but the long-term savings on energy costs can make it a worthwhile investment.

What are the pros of Onsite Energy Generation?

1. Cost Savings: One of the primary benefits of generating your own energy is the potential cost savings. Onsite energy generation allows businesses to avoid many of the costs associated with buying power from the grid, such as transmission and distribution fees, and the climate change levy. Additionally, onsite generation can help companies to manage their energy costs more effectively, as they have greater control over the energy production process.
2. Environmental Benefits: Another significant benefit of onsite energy generation is the potential to reduce carbon emissions and environmental impact. Renewable energy sources such as solar and wind power generate electricity with little to no emissions, making them a much more sustainable and environmentally-friendly way to procure renewable energy. Companies that generate their own energy on-site can also benefit from carbon credits, which can be sold on the open market.
3. Increased Energy Security: Onsite energy generation can provide companies with greater energy security, as they are less reliant on the national grid for their power supply. This can be particularly important in regions where the grid is unreliable, or where power outages are common.
4. Power Purchase Agreement (PPA): Onsite energy generation can also provide businesses with a way to procure renewable energy through a Power Purchase Agreement (PPA). A PPA is a contract between a renewable energy generator and a consumer, whereby the generator agrees to supply electricity to the consumer at an agreed price. PPAs can provide companies with a stable and predictable source of renewable energy, which can be particularly valuable in regions where energy costs are high.

What are the cons of Onsite Energy Generation?

1. Initial Cost: One of the primary drawbacks of onsite energy generation is the initial cost of installation. Solar PV arrays, wind turbines, and other renewable energy systems can be expensive to install, and the return on investment may not be realized for several years. However, there are many financing options available to help companies offset the initial cost of installation, such as leasing or power purchase agreements.
2. Intermittent Power Supply: Onsite energy generation using solar and wind power can be intermittent, as these energy sources are dependent on weather conditions. This means that there may be times when a business is unable to generate enough energy to meet their demand, and may need to rely on the grid or energy storage systems.
3. Operation and Maintenance: Onsite energy generation systems require regular maintenance to ensure optimal performance. This can be time-consuming and expensive, particularly for large systems such as wind turbines or solar farms.
4. System Cost and Capacity: The cost and capacity of onsite generation systems can be a barrier to entry for some businesses. The cost of larger systems such as solar or wind power can be prohibitive for some businesses, while smaller systems may not be able to meet the energy demands of the business.

Factors to Consider When Deciding on Onsite Energy Generation

1. Energy Demand: The energy demand of the business is a critical factor to consider when deciding on onsite energy generation. Businesses with high energy demands may benefit more from onsite generation, while smaller businesses with lower energy demand may find it more cost-effective to buy power from the grid.
2. Energy Efficiency: Energy efficiency is another important factor to consider when deciding on onsite energy generation. Improving energy efficiency can help businesses

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