EU-funded carbon-saving scheme Target 2030, which ran from January 2017 and ended in June, was open to SMEs ranging from global manufacturers and retailers to sports centres and community-run spaces. Initiated before the recent extreme hikes in energy tariffs, the scheme has given a greater-than-expected boost to the sector’s bottom line. With SMEs representing 90% of UK businesses, their financial sustainability will be vital for restarting economic growth; their commitment to reducing carbon emissions will also be crucial to achieving regional and national net zero ambitions.
Severn Wye’s business energy specialists carried out hundreds of site surveys and provided bespoke advice on no- and low-cost actions as well as capital investments. With detailed information on related savings and payback periods, the SMEs could make fully informed decisions about next steps and plan for the longer term. As well as funding the advisory reports, a 30% grant towards installation costs from Target 2030 made previously unaffordable improvements achievable for the first time.
Severn Wye CEO Sandy Ruthven says:
‘Target 2030 has been groundbreaking in its impact across the region, at a time when the cost of energy has threatened the very future of some SMEs. The range of measures our experts were able to recommend meant every organisation could take some steps towards improved energy efficiency, even if they decided the time wasn’t right for major investments. Over the six years of the scheme we’ve seen not just measurable financial and carbon-reduction gains but also increased interest in sustainability generally and its importance for the bottom line.’
When Severn Wye began delivering Target 2030 in 2017, it was initially only open to Gloucestershire SMEs for three years. The programme was so successful that a similar programme was extended to SMEs in Swindon and Wiltshire through to 2023.
Businesses across the region that took part in Target 2030 between 2017 and 2023 invested £4.72m in energy efficiency measures, returning more than £1.3m annual savings amounting to £27.5m over the life of the measures installed, even without recent price rises. They also saved a significant 4,760 tonnes of CO2 every year – equivalent to the average emissions of 1,500 of the region’s homes.
Tim Armstrong, Director and General Manager of Highfield Garden World says:
‘Investing in solar panels is proving a real success story for us. We use around 600,000 KVA a year and when the sun shines we’re covering that and pushing some into the grid; we’re reducing our impact on the environment and saving money at the same time. Energy use is right up there on the management agenda where it should be, and our behaviours are changing – we’re all increasingly careful not to leave lights on equipment on standby for example.’
The EU-funded, £2.2m Target 2030 programme will save more than £27.5 for Gloucestershire and Wiltshire SMEs at a time when soaring energy tariffs are posing a significant threat to the region’s economy. While currently there are no similar funding schemes available, Severn Wye has demonstrated that improving energy efficiency for business premises is an important and achievable step towards securing a long-term future for businesses and the climate.
