Guide to financing energy efficiency

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With utility bills continuing to rise, enhancing energy efficiency can have a significant impact on a company’s bottom line, reports the Carbon Trust Advisory’s Hugh Jones.

Research by Carbon Trust Advisory has shown that UK businesses could achieve cost savings of at least £3bn per annum and up to £1.6bn per annum for large businesses. 

A lack of funds is not the key barrier for most businesses.

With many energy efficiency projects delivering quick returns (generally less than three years), the barriers to adoption are often non-financial issues. Key barriers include low overall financial materiality of energy costs, lack of motivation and internal technical expertise, limited time, misaligned incentives (such as a tenant making changes that will only benefit a landlord), and concerns over business disruption.

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By ringi
16th Aug 2011 14:00

Related, but not directly,

We have thought about having solar panels installed on our home, but decided not to, as:

The good return is over many years, but will not change our lifes.The next owner may wish to put in a loft extension, and therefore not wish to pay more for the home to take account the return on the panels.  (The south roof is too small for panel and loft windows)Having solar panels may make our life’s more complex and is not a “core” part of our life.So we have decided to get a lower return by paying down our mortgage as it is easy.

I think a lot of companies hit the same issues, a long term cost saving must be very great to provide a better return on time and “brain power” then just spending the time getting the “core” right.

Thanks (0)