The current global energy crisis – caused by a number of major events colliding from the pandemic to the war in Ukraine – has triggered an upsurge in prices so dramatic it has threatened to destabilise entire economies.

In order that catastrophe might be averted, the UK government in conjunction with private industry, has announced a series of measures to help keep bills as affordable as possible. This has included looking at longer term strategies such as investing in nuclear power and resuming the controversial practice of fracking for shale gas.

Despite this, some companies are deciding they want to move away from a reliance on energy suppliers altogether and are instead exploring the potential of generating their own energy onsite.

If this is a category your business fits into, here’s some advice to ensure you make the right decisions.

As there are various methods for generating energy onsite, you need to clearly define what your objectives are so the right strategy can be developed.

For example, if your overarching goal is to achieve net-zero or just lower your carbon footprint, renewable technologies such as wind and solar should be at the top of your hit list. Even if decarbonisation isn’t your initial objective, you should keep in mind the UK government’s 2050 net-zero target. As this date nears, the pressure on businesses to reduce their greenhouse gas emissions will intensify. Acting now could prevent much stress further down the line.

If the motivation for moving to onsite energy generation is more of a financial one then other solutions might be more suitable. At present, the energy crisis looks like it might last for longer than anticipated. As such, reducing reliance on the grid is a shrewd means of dodging future price hikes. Here, the likes of ground and air source heat pumps could be the answer.

Other businesses are simply looking to future-proof against market volatility and future geo-political stand-offs. With more generalised objectives such as these, companies may wish to combine energy generation with battery storage. By reverting to battery power during periods of peak demand, costs can be reduced even further. Batteries also provide extra capacity should the need arise and are increasingly being used to provide Electric Vehicle (EV) charging stations with the additional energy needed for rapid charging.

Establishing your current usage and – as accurately as possible – how your future usage might look is highly advantageous for getting the implementation phase of your onsite generation system right.

A comprehensive analysis beforehand will expose any discrepancies in your usage profile versus the assets you’re exploring. Without one, you could end up with a system that either cannot meet your demand or is over-sized and becomes a financial burden.

You’ll also need to consider how new technologies such as EVs will influence your business’ reliance on electricity and whether all steps have been taken to achieve maximum energy efficiency. Again, a new electricity-dependent technology could over-burden your asset, forcing your business back onto the grid. Conversely, energy efficiency measures completed after the installation of an energy generation asset could lead to the system becoming too big for your needs.

As there are multiple types of onsite energy generation systems, the nature of your business will also determine which is the most appropriate. For example, anaerobic digestion – the process of using microorganisms to break down biodegradable material for fuel production – is much more suited to agricultural enterprise than the likes of retail.

It is thus advisable to make a complete list of the available technologies, how they work, and the pros and cons of each, relative to your specific business demands.

For starters, it’s not as much work as it sounds. A thorough energy usage analysis and forecast together with market research can be completed in a few weeks. Should the results of this activity draw you towards onsite energy generation, the benefits can be compelling.

Among the more common benefits are:

• Increased supply reliability:Should a fault in the grid lead to loss of power supply, onsite generation can kick in to ensure minimal operational disruption.
• Reduced grid connectivity costs: Every p/kWh of grid power avoided translates to a saving. Where grid power can be avoided for long periods – or even altogether – the savings can be significant.
• Rapid ROI: Onsite generation technology is both cheaper to install and more efficient than it has ever been, meaning returns are delivered quicker.
• Asset longevity: With regular, competent maintenance, modern systems can last for up to 20 years and typically come with generous warranties.
• Lowered carbon emissions: Power generated by onsite systems mostly produces lower carbon emissions than the grid thereby supporting net zero ambitions.
• Additional revenues: Some systems can be purchased with government subsidies or allow for surplus power to be sold back to the grid
• Finance options: It is common practice now for onsite generation providers to offer a range of payment option, meaning large CAPEX outlays can be avoided.

With such a wide range of onsite energy solutions available, choosing the right one for your business can feel overwhelming.

Speak to Red Hawk today and our expert consultants will guide you towards a solution that lowers your bills and emissions and puts you back in control of your own power supply without disrupting your workflows.