Over the past few years Severn Wye have seen a growing interest in energy efficiency from business. Even before the current energy crisis, forward-looking businesses realised energy efficiency gave long term returns and a competitive edge. Many companies looked even further ahead and recognised both their responsibility and the business pressures that will come from climate change. These businesses are reaping the rewards now. With energy bills up to 30% lower than similar businesses, they are more competitive and are already reducing their carbon emissions. Many now have a commitment to Net Zero and see energy efficiency as a way of helping them reach that goal.
These businesses are often those with the highest energy use. Manufacturing, food distribution and catering can all see gains of nearly 30% in energy efficiency with investment in new equipment, efficiency measures and changes in their processes. Before 2022 the average payback period for investments of this kind was 7-10 years. High energy prices mean these payback periods can currently fall as low as 2 years, well within business planning horizons. Whilst the savings for more office based or less energy intensive processes might be smaller (around 10% in our experience), high energy prices mean investments now will still pay off quickly.
The range of energy efficiency measures that we can support businesses with is varied and reflects the diversity of benefits available to different types of business. We’ve worked with furniture manufacturers to enable them to use off cuts and sawdust as fuel for their boilers. We’ve installed double glazing and insulation in a pump factory. New energy efficient cookers have helped a historic pub save thousands each year as they cook delicious meals. We’ve installed new laser cutters, glass formers and cookery equipment saving thousands of pounds. There are, of course, lots of specific energy saving measures for each industry. Modern machinery is often more energy efficient and usually makes business processes more efficient too.
We can’t do much about energy prices at the moment and with the UK Government unable to continue subsidising prices things are tough for business. But the silver lining to this cloud could be a more energy efficient and competitive business sector, with reduced carbon emissions too. Innovative businesses are looking ahead, it is time for the rest of the pack to follow.
