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Study reveals growing emphasis on green energy for businesses

Study reveals growing emphasis on green energy for businesses

Study reveals growing emphasis on green energy for businesses

There is a growing interest, among businesses and consumers alike, in where the energy they use is sourced from, a recent survey has suggested.

For companies, deriving energy from renewable sources can deliver a number of benefits, with the government offering incentives to encourage firms to improve their environmental standards and efficiency.

Having stronger green credentials can also help to enhance an organisation's reputation among its customers.

In a recent survey of 1,001 consumers by comparison site Love Energy Savings, four out of ten respondents (40 per cent) were of the opinion that businesses should be using renewable sources to meet their energy needs.

One in three people (33 per cent) said they would be willing to pay more for renewable energy. The report noted that there is growing demand for services from sustainable suppliers, but the range of tariffs available is not as broad as it is across the energy market as a whole.

Discussing the research findings, Phil Foster, managing director of Love Energy Savings, said there has been a clear increase in awareness among businesses regarding issues such as carbon emissions and efficiency.

"Green energy tariffs are already popular for homeowners, and while there are not as many renewable contract options available to businesses, due to usage requirements, many suppliers do offer a greener alternative," he commented.

"We've found that businesses are increasingly aware of their carbon emissions as taxes and governmental requirements force compliance and measurement. Suppliers know this too and it will be interesting to see how their fuel mixes change as green targets become ever more challenging."

The comparison site put together a guide to show where Britain's biggest power companies get their energy from.

It revealed that E.ON has the highest share of 'clean' energy in its overall mix, with 40 per cent of its electricity coming from renewables, compared with 27 per cent from natural gas, 16 per cent from coal and 11 per cent from nuclear.

British Gas has a fairly equal share of nuclear (34 per cent) and renewables (33 per cent) in its energy mix, while SSE derives more of its energy from renewables (37 per cent) than any other source, but still has a heavy reliance on coal (31 per cent).

Other significant figures showed that EDF derives nearly two-thirds (64 per cent) of its energy from nuclear generation and Npower takes a similar proportion (66 per cent) from natural gas.

Over the coming years, we could see an increase in businesses showing a preference for suppliers that place an emphasis on renewable generation.

However, Guy Harwood, TPI contract manager at npower, pointed out that while customers are "certainly more aware of green energy", price is still a major determining factor in buyer behaviour and purchasing decisions.

As well as looking into changing their power supplier, smaller businesses can make a positive difference to their energy efficiency by choosing eco-friendly service providers and encouraging better day-to-day practices in the workplace.

 

Posted by Julie Tucker

Image courtesy of iStock/Petmal