Renewable energy costs spike causing panic

Article posted

23rd Apr 2024

Read time

2-4 min read


Mollie Pinnington

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The push for renewable energy is a critical step towards a sustainable future. However, for businesses, the transition might not be entirely smooth sailing. While the long-term benefits are undeniable, there's a potential for green energy to increase energy bills in the next few decades. Here's why businesses need to be cautious and take a strategic approach:

1. Infrastructure Investment: The current energy grid is largely built for traditional fossil fuels. Integrating a significant amount of renewable energy sources like solar and wind requires substantial investment in new infrastructure. These upfront costs may be reflected in energy prices for businesses.

2. Intermittency Challenges: Renewables like solar and wind are variable sources. The sun doesn't always shine, and the wind doesn't always blow. This intermittency can create challenges in meeting peak demand, potentially leading to higher prices during high-consumption periods.

3. Storage Solutions: Storing excess renewable energy for later use is crucial for a stable and reliable grid powered by renewables. However, efficient and cost-effective storage technologies are still under development, and their integration might add to energy costs initially.

4. Policy and Market Fluctuations: Government policies and incentives play a big role in shaping renewable energy costs. Changes in these policies or fluctuations in the global energy market can impact the price businesses pay for green energy.


What Businesses Can Do


  • Energy Audits and Efficiency: Businesses can proactively reduce their overall energy consumption through energy audits and implementing efficiency measures. This can significantly lower their energy bills irrespective of the source.
  • Fixed-Price Contracts: Consider locking in fixed-price contracts with energy suppliers for a set period to mitigate market fluctuations. Get a quote today to get started.
  • On-Site Generation: Explore possibilities for on-site generation of renewable energy like rooftop solar panels. While there's an initial investment, the long-term savings can be significant, especially with government support schemes.
  • Stay Informed: Businesses should stay updated on the evolving renewable energy landscape, including policy changes, technological advancements, and market trends. This knowledge can help them make informed decisions regarding their energy strategies.

The transition to green energy is inevitable. While there might be short-term cost considerations, businesses that embrace a strategic approach and invest in efficiency measures can navigate these challenges. By understanding the potential hurdles and taking proactive steps, businesses can ensure a smooth transition towards a sustainable and cost-effective energy future.

If you're looking to save money on your energy bills then why not get in touch today? The relationships Resolve Energy has developed with over 24 of the UK’s biggest business energy suppliers allows our energy experts to source the best business energy rates available for your company right when you need them. Request a free quote today and start saving money on your energy.

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