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Impatience impedes energy saving investment
Majority of UK businesses want returns within three years When it comes to self-generation of renewable energy, UK SMEs want an unrealistically quick return on investment, according to research carried out by energy consultancy energyTEAM. Nearly three-quarters (74 per cent) would need payback within three years in order to justify introducing such measures. Only four per cent are prepared for this process to take over five years, despite growing global concern over commercial energy usage. energyTEAM's study revealed that 40 per cent of enterprises with 50 to 500 employees would have to be convinced of a return on investment in just one year before they would proceed down the route of self-generation. Over a third (34 per cent) said two years was the maximum time they could wait for a renewable energy source to start paying for itself. However, when asked which method of self-generation they would be most inclined to choose, over half of respondents (54 per cent) highlighted solar power as the preferred method. This is despite that fact that solar has one of the longest payback times, at around ten years. Second most popular was wind power (44 per cent) and then biomass (13 per cent), although both of these technologies have a payback period of less than four years. Brian Rickerby, joint managing director at energyTEAM, believes these findings reveal that more education is required on self-generation energy techniques. He comments: "It is interesting to see that the majority of UK SMEs are keen for investment in energy generation to have a swift payback. I can understand that seeking a quick return is a pragmatic, business-like approach, but unfortunately this is not realistic when it comes to energy issues. Self-generation technologies must be viewed as a long-term strategy that will have a significant positive impact for many years to come. "The interest in solar power reflects the fact that many people remain unsure about some of the newer methods available. It is true that solar is also comparatively cheap after the initial payback period, although this is much longer than wind or biomass alternatives. Solar is also one of the most visible forms of self-generation, which may be playing a role in respondent's choices - after all, everyone wants to be seen to taking proactive measures to cut their environmental impact!" The energyTEAM survey was conducted by telephone amongst 100 managing directors and CEOs of UK organisations with between 50 and 500 employees. For further information on energyTEAM please visit www.energyteam.co.uk. |
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