Introduction
As specialists in the renewable energy field, we’ve spent a lot of time talking with clients, both commercial and domestic, about how best to implement sustainable solutions into their properties.
Ordinarily, this is easy enough. With more and more buildings across the UK opting for renewable energy technologies over traditional energy systems, we’ve had experience in designing and installing a range of solutions for different types of properties.
Old and new, large and small, residential and commercial. By and large, if the client wants the technology, and it makes sense for their property, it’s usually a straightforward conversation – and a few months down the line, their system is good to go.
But have there ever been times when the conversation isn’t straightforward? We mentioned there that it has to make sense for the property as a whole, but what if it doesn’t make sense, and might actually be a decision that costs more than it delivers?
The short answer is yes, those conversations can happen. Just because renewable energy is becoming so popular doesn’t mean it’s always going to be the right investment, or that it necessarily fits for every building.
On the contrary, blindly investing in renewable energy can be detrimental to a home or commercial property if the practical considerations aren’t thought through.
To change the script a little, we’re going to be upfront and honest about those specific scenarios, and what you can consider instead if you find that renewable energy just isn’t the right fit for the kind of property you’re running.
The Thing About Energy Usage
Before getting into the practical side, it’s important to discuss the reason people opt for renewable energy in the first place. First off, there’s the sustainability factor. For many homeowners and businesses, reducing their environmental impact is a major motivation, with renewable tech like solar PV and heat pumps helping to lower reliance on fossil fuels and reduce carbon emissions as a result.
For commercial properties in particular, these investments also support any goals for net zero, demonstrating their commitment to more responsible operations by aligning with ESG – Environmental, Social, and Governance – objectives.
The second major driver is cost. With energy prices remaining a concern, renewable energy offers the opportunity to generate your own electricity, reducing reliance on the grid and potentially lowering those long-term running costs.
Yes, the initial investment can be significant, but many people view renewable tech as a way to gain greater control over their energy expenditure, creating a more independent system that creates its own electricity, stores its own electricity, and gradually reduces reliance on all external suppliers.
Both of these are perfectly valid reasons to explore renewable energy. However, neither sustainability nor potential cost savings should be the only factors influencing your decision. Before choosing any renewable technology, it’s important to take a step back and really understand how your property actually uses energy right now.
When do you consume the most electricity? Are your heating and cooling requirements seasonal, or do they remain relatively stable year-round? The answers to these questions can have a significant impact on whether a particular renewable system is actually going to deliver the benefits you’re expecting, or whether it’s going to generate energy you don’t actually need..
After all, two properties with similar energy bills don’t necessarily have the same usage patterns, meaning the most suitable solution – or whether a renewable installation is worthwhile at all – can vary considerably.
Differences in Energy Usage: An Example
To give an example, let’s say a small business operates from a rented office unit. They only use basic lighting, computers and office equipment during standard working hours, with no plans to expand or increase their energy requirements in the future.
After reviewing their energy usage, it becomes clear that the amount of electricity they consume is already relatively modest, and while commercial solar panels could generate renewable electricity, the savings achieved would be limited because there simply isn’t enough energy demand to offset. Add in the fact that the business doesn’t own the building, isn’t expanding its operations any time soon, and the investment becomes much harder to justify.
Now consider a different scenario. An agricultural business operates from its own premises, with high daytime electricity consumption from lighting, machinery, and other equipment. Their energy demand is consistent throughout working hours, meaning much of the electricity they use aligns with when solar PV is generating energy – plus, they have long-term plans to remain at the site and are looking at ways to reduce operating costs over the next decade.
For this business, renewable energy could be a much better fit. Not only do they have a high daytime demand, but their usage pattern and long-term plans mean that they’re far more likely to benefit from reducing their reliance on the grid.
The difference between these two examples is not that one business cares more about sustainability or is more cost-savvy than the other. Both may want to reduce their environmental impact and manage rising energy costs. The difference is that renewable technology needs to match the way a property operates. Without sufficient demand or a long-term reason to invest, the numbers may simply not make sense, and for the former company, the opportunity to cut costs may be found more appropriately elsewhere.
The Logistics of a Property
It’s also important to look at the logistics of a property by itself. Even if the energy usage of a homeowner or business suggests that renewable energy could be a good fit, the building still needs to be suitable.
The thing about renewable systems is that they’re designed around the characteristics of a property, meaning available space, orientation, and condition all influence whether an installation is practical and capable of delivering the expected results.
Take solar PV as an example. A property might have a suitable level of electricity demand, but if the roof is too small or heavily shaded, the system might not actually generate enough energy to justify the investment. In some cases, structural improvements might be needed, or perhaps even roof repairs if the condition of the property is poor.
That means additional costs and an extended timeframe before any return can be achieved, and for many clients, that’s just not practical from a financial point of view.
The same applies to other renewable technologies too. Heat pumps, for instance, require careful consideration of the existing heating system, insulation levels, and how efficiently the building retains heat. Meanwhile, commercial EV charging requires suitable parking arrangements, as well as the right infrastructure to support regular charging demand.
Some of the practical considerations might not be immediately obvious, but the point is, this isn’t a simple buy-and-install scenario. Many properties can be adapted and prepared for installation, but the fact of the matter is that some properties can’t, and for these properties, renewable installations simply aren’t the best use of an investment at that time.
Budgets, ROI, and Future Costs
Every homeowner and business owner, of course, will be looking for a return on that investment. One of the main positives of installing renewable technologies into a property is that they can help reduce reliance on traditional energy sources, ultimately lowering long-term running costs and providing greater control over future energy expenditure.
However, that doesn’t mean every renewable installation will automatically provide the same financial benefit. The upfront cost of renewable technologies can be significant, and the value of the investment depends on a range of factors, including how much energy the system generates, how much of that energy is used on-site, current energy prices, maintenance requirements, and more.
For some people, the expected return simply might not justify the initial outlay. A property owner who is planning to move within the next few years, for example, may not have enough time to see the full financial benefits of the installation, and so while the technology could still add value to the property, the immediate savings wouldn’t be enough to outweigh the upfront cost during their time there.
The same applies to businesses. A company may want to reduce its carbon footprint and lower energy bills, but if the available budget is limited, other, more cost-effective improvements – that don’t involve the relatively high upfront costs of sustainable installations – might provide a faster or more noticeable return.
It’s also important to remember that no business or household is static. Times change, circumstances too, and the energy needs you have now might not be the same in three or five years’ time. Can you say for sure that your business will have the same energy demands for the next three or five years, or is there a chance the business downsizes and the system you’ve installed becomes less valuable as a result?
We’re not saying that it’s a long slog to get a return on investment for renewable technologies. But situations vary, and budgets, circumstances, and future costs must be accounted for if a decision is to be truly justified.
Other Options to Consider
There are always other options to consider. Just because renewable energy might not be the right investment for you right now, that doesn’t mean there are no investments you can make to improve your property and make your energy usage more efficient.
Domestic Options
For homeowners, this could mean simpler improvements that reduce everyday energy consumption. For instance, improving insulation in walls, loft spaces and floors can help a property retain heat more effectively, meaning your heating systems don’t need to work as hard to maintain the right temperatures.
Speaking of heating systems, if your boiler is old, that likely means your energy costs are increased unnecessarily, which can be fixed by considering an upgrade or installing smart thermostats to give you greater control over how and when your heating is used.
Addressing draughts and improving ventilation can also be a good idea, especially if your property has poor airflow management. The last thing you need is for your heating systems to be working harder than necessary simply to compensate for energy being wasted, but with something like draught-proofing or upgraded windows, there’s no reason why you can’t create a more efficient home without any kind of hefty investment.
Commercial Options
In terms of commercial properties, the opportunities could be even broader. As we noted above, businesses often operate in more complex buildings with higher energy demands, meaning even small inefficiencies can have a big impact on operating costs.
Upgrading lighting systems, for example, can be a relatively straightforward way to reduce electricity consumption, while automated lighting controls can be good for managing usage across larger buildings.
Another option is improving how energy is monitored and managed. Something like BMS – Building Management Systems – can be a great way to understand how a building is operating, controlling elements such as heating, cooling, lighting, and ventilation on demand.
Rather than heating empty spaces or running systems at times they’re not required, a BMS can help ensure energy is being used where and when it’s needed – so it wouldn’t be a complete change of system you’ll be investing in, but a tool to better understand your already-made investments and ensure they’re operating efficiently.
A Gradual Phasing Plan
In many cases, too, the above options can be the precursor to a gradual energy plan. What we mean by this is that renewable energy doesn’t have to be an immediate, all-or-nothing investment. On the contrary, for many people, taking smaller steps first can be a far more practical way to improve efficiency when renewable tech is implemented.
Let’s say a homeowner starts by improving their airflow, and later down the line, they decide to install domestic heat pumps over their traditional boiler. Since heat pumps work by moving heat from the surrounding environment, by improving the property’s ability to retain heat first, they’ve created a much better environment for the technology to operate effectively – simply because they’ve reduced the amount of work it needs to do.
The same principle might apply to a business. Let’s say a commercial property upgrades its existing insulation levels, then decides to optimise its existing HVAC to a modern HVAC system. By reducing heat loss throughout the building, they’ve created a more efficient environment for the new system to operate in, reducing energy use and thus improving its overall performance.
From a heat pump or modern HVAC solution, there might then come battery storage, EV charging, solar panels. Essentially, you’d be phasing in a more sustainable, reliable framework, creating a long-term energy strategy that evolves alongside your property’s needs instead of committing to a single large investment before you’re ready.
Conclusion
Indeed, the above approach is often what we recommend to clients upon reviewing their property. Even if their property isn’t yet suitable for a full renewable renovation, there are often small, incremental renewable solutions that can set them on the road to greater energy efficiency and sustainability.
As time moves forward and circumstances change, those smaller solutions can then be given room to grow, with costs gradually declining and the sustainability of the property gradually going from strength to strength.
The main thing is to get professional advice on your property and energy requirements, giving you a far clearer idea of what the right next steps really are and how you can make informed investments that deliver genuine long-term value.
To get that professional advice, make sure to get in touch with us here at GSM Ltd, where we can talk through your energy usage, your future goals, and make an assessment of your property to determine the best options for you.
