All businesses like to save cash.
Whether it’s new computers or the electricity that powers them, paying more than you need to for something is the ultimate false economy.
It’s the reason why comparison sites and discount sites exist. It’s also the reason why we seek out quotes for professional services. We like a bargain because it means we have more cash in the business to grow and invest in important things
One of the commodities businesses can save the biggest on is energy.
It’s funny to think that no matter how it is produced, all electricity is the same. Your computer has no idea how the electricity it receives was made.
And yet, electricity prices can be vastly different between suppliers. We’d wager that the price you pay per kWh is different from the business next door.
Surprisingly, renewable electricity can also be cheaper than traditional electricity – despite the infrastructure behind it being much newer.
Cheaper Energy By Going Green?
Your business can save money and slash its carbon footprint in one fell swoop by switching to green electricity when it’s time to renew.
Data compiled by EnergyBillKill from April 1 to April 30 shows that renewable energy prices were cheaper than traditional energy prices over the period.
May followed the same trend, and June’s prices are looking likely to follow suit too. This is great news for your wallet and planet earth.
Admittedly, the cash savings are not enormous – April’s data shows that a business consuming 20,000 kWh per year would pay £2,540 a year for green electricity, and £2,612 a year for traditional electricity.
That’s a £72 saving – not enough to pay your wage bill, but a decent chunk of money for the petty cash box at least (or a good lunch).
Slashing Your Business’s Carbon Footprint
Switching over to renewable electricity won’t cost you anything. As we’ve discovered, it could actually save you money!
It will also significantly reduce your carbon footprint.
Most of the electricity used by businesses is traditional electricity, which means the electricity is produced using nuclear and fossil fuels. This means the electricity contributes to nuclear waste and CO2 emissions.
Renewable energy contributes neither. It is 100% clean.
There are two ways this is achieved:
1) the energy company produces its own renewable certified electricity (rare), or 2) the energy company sources electricity from the grid and buys renewable energy certificates (REGOs) to show that electricity has been generated from renewable sources (common).
Both are legitimate ways to supply green electricity.
Running the Numbers
As a business, you will probably be looking for ways to be greener and reduce your environmental impact. Switching to 100% renewable electricity when your contract is up for renewal is a painless way to go about it.
Let’s say you use 20,000 kWh of electricity each year. Your contract is with British Gas, whose environmental impact is 157g of CO2 per kWh.
This means your CO2 emissions from using electricity are 3,140,000g per year.
This is an astounding number. If you have never done the maths before, you might be shocked by it. We know we always are.
Now let’s compare that number to green energy.
Let’s again say you use 20,000 kWh of electricity each year. Your contract is with Bulb, whose environmental impact is 0g of CO2 per kWh.
This means your CO2 emissions from using electricity are 0g per year. As we’re sure you’ll agree, this is an enormous difference.
So, by switching to green business energy, you’ll save money and you’ll reduce the amount of CO2 entering the atmosphere by a significant amount.
If you ask us, that’s a switch worth pursuing.