A new survey by Ernst & Young has revealed that many British businesses are delaying making large investments in energy efficiency measures because of high start-up costs and a lack of clarity over how long it will take to see returns.
Whilst a large majority of companies have made basic changes to reduce their business electricity rates, they are still unclear on exactly how much expensive green technology will cost in the long-term.
More than 250 business leaders were polled in the survey and the results show that whilst 70% had made improvements to lighting and temperature controls, just 12% had installed more expensive microgeneration technologies, such as solar or wind power. 77% of participants said that high up-front costs were the cause of their reluctance to invest heavily in business energy efficiency, with almost 80% of those polled also concerned about the length of time it would take to see any significant profits.
Despite these concerns, UK businesses do appear to be aware of the problems facing the energy industry over the next decade. 95% of companies polled believed that business gas prices are likely to increase significantly in the next five to ten years, with 70% also predicting that localised energy black-outs would force them to readdress their energy policies.
In an interview with BusinessGreen, a website business web site offering companies the latest news on how to become more environmentally responsible, a spokesman for Ernst & Young explains why the UK is taking a conservative approach to energy saving technologies. Richard Postance, advisory partner in power and utilities, said:
‘A lot of people have made a start and the things they haven’t done – behavioural change, microgeneration – are pretty hard. The problem is people think it’s a future market, even though that’s not the case. Unless something changes, will we really see the energy efficiency improvements we need?’
Yet Postance believes that the government’s Green Deal energy efficiency loan scheme, due to cover into effect in Autumn 2012, will boost action in the commercial sector:
‘Offering the Green Deal business-to-business is a smart move,’ he said. ‘After all, we’re looking to reduce net carbon emissions for the economy and there are some efficiencies that come from scale.’
Whilst a very large majority of companies have made basic changes to reduce their business electricity rates, they are still unclear on exactly how much expensive green technology will cost in the long-term.