Businesses of all sizes are being warned of inevitable energy price rises in the coming months. Reflecting on this, the findings from the latest British Chamber of Commerce (BCC) Quarterly Economic Survey (QES) shows rising energy costs are a growing cause for concern for many.
With no energy price cap for businesses, many will be exposed to the full impact. Most organisations will understand that improving energy efficiency is a key step in reducing energy consumption. Yet, more often than not, businesses are reluctant to invest in the required low carbon solutions that can help them achieve this when cashflow is an issue.
However, taking swift action on energy efficiency investments is the best way to mitigate the hit of inevitable price rises. With many commentators suggesting that the cost of gas and electricity could rise by around 30%, ask yourself if your business could stand up to such a massive spike in operational costs. If the answer is no, then the time to act is now.
Act on energy efficiency now
At Journey, we have developed a model that covers the cost of upgrading to greener, more energy efficient technology – but without any capital outlay. It works in a similar way to a contract hire or fixed cost motoring agreement, unlocking significant cost savings – often in excess of 60% – over the term of a contract providing businesses with predictability and control over operational costs.
Here are our top five reasons why we think it pays to invest in energy efficiency.
1. Reduced operational costs
One of the main reasons to invest in energy efficiency solutions, is the significant savings that can be made in relation to operational costs. Less efficient equipment requires more energy to run, thereby inflating utility bills. By replacing it with modern solutions, significant savings can be made. Take lighting for example: by replacing existing outdated lamps with energy efficient LEDs, savings of up to 60% can be expected, rising to 80% when intelligent lighting controls are utilised. And the savings are generated from the low carbon technology is switched on.
2. Road to decarbonisation
Reducing energy consumption takes place against the need for businesses to contribute towards the Government’s legally binding commitment to reach net zero by 2050. Not only will investing in energy saving technology reduce your overall carbon emissions, but it shows key stakeholders – including customers, shareholders and investors – that you are committed to improving your company’s green credentials in line with organisational, domestic and international climate action goals.
3. Fixed costs
Cash is a limited resource, and many businesses will want to save their money for their core business activities. One of the biggest benefits of ‘as a service’ energy efficient upgrades is there is no need for upfront capital expenditure. Energy and costs savings can be aligned with the fixed monthly repayments providing greater predictability. And because contracts can be classed as an operating expense, businesses can preserve their existing banking covenants.
4. Bespoke solution
With our range of ‘as a service’ solutions we work together to develop the right model for your business, whether that is for LED lighting upgrades, EV charging or renewable energy generation technology and storage. Whatever you need, we can support you to enable your specific requirements.
5. Peace of Mind
With our turnkey approach to delivering energy efficiency, we take care of everything; from the design, installation and maintenance giving you peace of mind. Any ongoing maintenance is included within the monthly service costs.
To learn more about cutting costs and saving energy through our service-based models download our free guide.