Generate Your Own Energy

UK energy bills have gone through the roof, and they're not coming back down anytime soon. Watching your business's electricity statements with a growing sense of dread? You're not alone. The good news is that generating your own power isn't just for eco-warriors anymore. It's becoming a sensible financial decision for businesses of all sizes.

Why businesses are taking energy into their own hands

The numbers tell the story. Commercial energy rates have jumped by over 50% in recent years, pushing companies to find ways to dodge the next price hike. A Manchester printing firm installed solar panels in 2022 and now saves £18,000 annually on electricity bills. That's real money back in the business.

Renewable energy might seem complicated or expensive, but technology has come a long way. Solar panels cost 70% less than they did a decade ago. Commercial wind turbines run quieter and more efficiently than ever. The government's backing this shift too, with various grants and tax incentives making the switch more affordable.

Your options (and yes, there are quite a few)

First up, there's the easy route: switching to a green energy tariff. But be careful here. Some suppliers claim their tariffs are '100% renewable' when they're actually just buying Renewable Energy Guarantees of Origin (REGOs) certificates rather than sourcing genuinely green electricity. These certificates prove that renewable energy has been generated somewhere, but not necessarily that you're using it. Worth digging deeper or you might end up paying extra for nothing.

Want something more ambitious? Generate your own power. UK businesses already produce about 10% of the country's electricity through small-scale generation. That figure could easily double if more companies jumped on board.

Solar: The UK's surprising success story

"But we don't get enough sun!" I hear you cry. Solar panels actually work perfectly well in the UK climate. They need daylight, not blazing sunshine. Germany has similar weather to us and leads Europe in solar energy production.

Modern photovoltaic panels fit on most commercial roofs. A typical 50kW system (suitable for a medium-sized office or warehouse) costs around £40,000-£50,000 but can slash electricity bills by 40-60%. Through the Smart Export Guarantee scheme, you can sell excess power back to the grid. Current rates range from 3-7p per kWh depending on your supplier – worth shopping around as rates vary significantly. You'll need approval from your Distribution Network Operator (DNO) before connecting to the grid, but most installations get the green light without issues.

Solar thermal systems work particularly well for businesses needing lots of hot water – hotels, care homes, or gyms spring to mind. These heat water directly using the sun's energy and can provide 60% of your hot water needs annually.

Wind power: Not just for Scottish hillsides

Small wind turbines can work brilliantly in the right location. An exposed site with average wind speeds above 5 metres per second could prove highly lucrative. A 15kW turbine (about 15 metres tall) generates enough electricity to power a small office block.

Planning permission can be tricky though. You'll need to consider:

• Noise regulations – modern turbines are quiet, but neighbours might still object
• Visual impact – some councils are stricter than others
• Wildlife concerns – particularly if you're near protected bird habitats
• Distance from buildings and boundaries – usually needs to be the turbine's height plus 10%

Your local planning authority can guide you through the process, and many renewable energy installers offer planning support as part of their service.

Biomass: Turning waste into watts

Biomass boilers burn wood pellets, chips, or even agricultural waste to provide heating. They're particularly brilliant for rural businesses or those producing organic waste. A Yorkshire farm shop recently installed a biomass system that burns waste from their vegetable processing – they've cut heating costs by 80% and reduced waste disposal fees too.

The upfront costs are steep (£10,000-£25,000 for a commercial system), but running costs work out at about half those of oil heating. Biomass produces 90% less CO2 than fossil fuels too. Just make sure you source fuel from the Biomass Suppliers List to ensure it's genuinely sustainable.

Your situation may be slightly different. ask a question below ↓ and our editorial team will reply with our advice.

Ground source heat: The quiet achiever

Ground source heat pumps tap into the constant 11-12°C temperature underground to provide incredibly efficient heating. For every unit of electricity used to run the pump, you get 3-4 units of heat – that's 300-400% efficiency.

The catch? You need space for underground pipes, either laid horizontally (requiring about 200 square metres of land) or drilled vertically (expensive but space-saving). Installation typically costs £20,000-£40,000, but the technology lasts 50+ years with minimal maintenance.

Energy storage: Making the most of what you generate

Battery storage systems are becoming increasingly popular for managing self-generated energy. They let you store excess power generated during the day for use during peak times or at night. Commercial battery systems start from around £15,000 but can significantly increase your energy independence and reduce reliance on the grid during expensive peak periods.

Making it happen

Before rushing out to buy solar panels, get an energy audit. The Energy Saving Trust offers assessments specifically for businesses, while the Renewable Energy Association can connect you with accredited installers. Speaking to businesses that have already made the switch proves invaluable – most are surprisingly happy to share their experiences, warts and all.

Check what support's available too. The government's Capital Allowances scheme lets you write off the full cost of qualifying renewable energy equipment against taxable profits in the year of purchase. Some local authorities offer additional grants or interest-free loans – your local enterprise partnership can point you in the right direction.

Here's your action checklist:

• Conduct an energy audit to understand your current usage
• Research which renewable options suit your location and needs
• Get quotes from multiple accredited installers
• Check planning requirements with your local authority
• Investigate available grants and incentives
• Talk to other businesses who've made the switch
• If connecting to the grid, contact your DNO early in the process

Generating your own energy isn't just about saving money or hitting sustainability targets. It's about taking control of one of your biggest overheads and future-proofing your business. The technology's proven, the finances increasingly stack up, and energy companies aren't going to start cutting prices anytime soon. Why wait for the next price shock when you could be generating your own power instead?