It seems that almost every day there are new stories coming out in the news about the climate crisis and how we all need to do more to move towards a net zero future. For businesses that are already juggling many elements to keep themselves profitable, worrying about where their energy comes from might feel like too much.
However, there are a number of tangible benefits to taking the time to switch to a green energy tariff – and it’s not all about the money. But let’s start there.
Green energy tariffs can be affordable
While completely green energy tariffs are often a bit more expensive than energy produced by fossil fuels, the costs have dropped considerably in recent years as renewable power has made up more and more of the country’s energy mix.
There are some very affordable green energy tariffs on the market for businesses. You’ll typically get the best deal if you fix your price for a set period of time. Not only does this allow you to secure cheaper energy for your business, it also makes it easier for you to budget for your expenses.
Instead of having to see how much energy you use before being able to work out your costs each month, you’ll know ahead of time exactly how much you need to set aside to account for your energy use.
You could take advantage of government incentives
Another financial reason to consider switching to green energy tariffs are the incentives for doing so offered by the government. In the UK, the government has made almost £5 billion available to support businesses to become greener.
This is part of the government’s plan to achieve net-zero emissions within the UK by 2050. If you stall your own green energy generation facilities at your premises, you will likely receive money from your supplier who “buys back” any energy you generate but don’t use so that it can feed that back into the grid.
There is a scheme called the Smart Export Guarantee (SEG) that supports this process and ensures organisations that are taking steps towards being more sustainable are rewarded.
It reduces your business’ environmental impact
Whether you invest in the likes of solar voltaic panels at your premises or you simply switch to a green energy tariff, you will be lowering your business’ carbon emissions. This helps reduce your environmental impact.
While that might sound like a “nice to have” rather than something that’s essential, you could be surprised by how important this is for future proofing your organisation.
Both consumers and investors are increasingly looking into how a business’ activities impact the environment. This means if you can reduce your emissions, it could help you bring in new customers and potentially secure investment, if that’s what you’re looking for.
As more and more regulations around transitioning to a low-carbon economy are introduced, a business’ emissions are going to be put under the spotlight more frequently. By making this switch now, you’re getting ahead of the curve and ensuring you can still compete in the future.
It improves your reputation with consumers
Consumers are increasingly looking at the environmental credentials of companies before choosing to do business with them. Standards like B Corp are making it easier than ever for consumers to see which companies are taking steps to reduce their environmental impact and which aren’t.
The latest Global Sustainability Study from Simon-Kucher found that 64 per cent of consumers rate sustainability as one of their top three purchasing considerations. What’s more, 54 per cent of consumers are now prepared to pay a premium for sustainable products.
Switching to a green energy tariff therefore makes perfect sense, particularly if you are positioning your organisation as an eco-friendly option within your industry.
It’s the right action to take
While there is compelling evidence that not only switching to a green energy tariff, but taking steps to improve your business’ sustainability will benefit your bottom line, this isn’t the only reason to take action.
There is inescapable evidence of the climate crisis and the science clearly shows us that unless we all take steps to reduce our carbon footprints, the consequences could be catastrophic. More and more people are concerned about the climate crisis and as a business focusing on ways in which to reduce your environmental impact is therefore simply the right action to take.
Switching to a green energy tariff is a step in the right direction. It isn’t always easy to find the most appropriate tariff for your business though, so it is advisable to work with green energy brokers to find the best option and negotiate the best rates possible.
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