As we move further into 2024, many are hopeful for greater stability and preparedness in the UK’s energy market, following years of unpredictability and sharp price increases. The continuous rise in energy costs has created significant challenges for business owners, who face higher expenses and uncertainty about the future. In 2021, a survey revealed that over a third of small business owners experienced increased energy bills, and almost a third planned to reduce their energy usage to cut costs. Businesses on fixed-price contracts expiring in late 2021 saw their bills quadruple within the year.
The Role of Renewable Energy in Reducing Costs
The energy crisis has resulted from a combination of high global gas demand, gas shortages, insufficient investment in renewable energies, and the bankruptcy of smaller energy suppliers. The previous UK government had maintained its stance against intervening to rescue failing energy companies or subsidise energy prices for businesses. Consequently, many businesses have had to switch to new suppliers at higher tariffs or risk losing their energy supply. The crisis has had widespread effects on other sectors like food production, transport, and manufacturing, leading to scaled-back production and, in some cases, staff reductions.
The Federation of Small Businesses (FSB) has called for urgent government action to support small businesses. Their suggestions include providing grants or loans for energy efficiency improvements and creating a hardship fund for the most affected sectors. The FSB also advises businesses to seek the best energy deals and consult with trade associations or local authorities for guidance.
Addressing the Energy Crisis with Innovation
The energy crisis presents a significant challenge, likely to persist for the foreseeable future. However, businesses can adapt and innovate by adopting renewable energy sources, diversifying their products or services, or finding new ways to reduce energy use.
Data shows that the average energy cost for a commercial building in 2023 was £3,375 higher than in 2021, and about £1,582 higher than in 2022, representing increases of 139% and 38%, respectively. These figures underscore the ongoing impact of the energy crisis on commercial buildings in the UK, emphasizing the need for businesses to reduce energy consumption and enhance energy efficiency.
Cost Analysis of Commercial Energy Use
The average energy costs in commercial buildings depend on various factors, such as building type and size, energy supplier and tariff, energy consumption and efficiency, and market conditions. Here’s a breakdown of average annual energy costs for a typical small commercial building consuming 15,000 kWh of electricity and gas:
2021:
- Electricity: 13.22 pence per kWh = £1,983
- Gas: 2.91 pence per kWh = £437
- Total: £2,420
2022:
- Electricity: 21.56 pence per kWh = £3,234
- Gas: 6.53 pence per kWh = £979
- Total: £4,213
2023:
- Electricity: 28.76 pence per kWh = £4,314
- Gas: 9.87 pence per kWh = £1,481
- Total: £5,795
These calculations highlight the substantial increase in energy costs over recent years, emphasising the critical need for businesses to focus on energy efficiency.
Amongst the numerous means and methods of conserving energy and the energy-saving products that are available, Contrasol offers a diverse range of architectural louvres and solar shading products that contribute to a building’s energy efficiency.
Some of the benefits of Contrasol’s solutions, include:
- Reducing the solar heat gain and glare in buildings, which can improve the thermal comfort and productivity of occupants and reduce the need for artificial cooling and lighting.
- Enhancing the aesthetic and functional design of buildings, by creating unique and aesthetically enhancing façades, roofs, and canopies, and providing natural ventilation and daylight.
- Reducing reliance on mechanical ventilation systems; Contrasol’s ventilation louvres optimise natural airflow, thus lowering energy consumption and associated carbon emissions.
- Helping to achieve compliance with the relevant building regulations and standards, such as the Energy Performance of Buildings Directive (EPBD), the Minimum Energy Efficiency Standards (MEES), and the Building Research Establishment Environmental Assessment Method (BREEAM).
- Providing bespoke solutions that suit the specific needs and goals of each project, as well as the budget and timeline.
At Contrasol, we’re committed to helping businesses navigate these challenges with innovative energy solutions tailored to their unique needs.
Get in touch to get a quote for your commercial building project.
