SMEs want security in renewables investments
According to the Federation of Small Businesses (FSB), the vast majority of SMEs want to go green but are put off by perceived poor security for their investments.
In their research, the FSB found that a massive 90% of small businesses want to be more energy efficient and while the initial costs associated with this activity can be a deterrent, it is not the only thing to make some business owners think twice.
“Small firms claim a lack of incentive to invest in rented premises, an uncertainty regarding return of investment and a poor understanding of the options available as the biggest obstacles to energy efficiency,” said FSB National Chairman John Allan.
“Small businesses are desperately looking for security around their potential investments in both renewables and efficiency”.
Keeping an eye on the bottom line
Understandably, finance and long-term returns are pressing concerns for SMEs who must make the numbers work in order to stay profitable and support their growth and expansion.
While desires to “go green” and improve energy efficiency may be prominent it is important than any business owners considering these options take the financial implications – both immediate and long-term – into account.
Failure to do so could leave them in financial difficulty and even force them to seek insolvency advice as a way to address their money troubles.
As well as crunching their own numbers and calculating what is viable within their current cashflow, SMEs should also consider what financial aid is available via the Government.
The FSB’s comments above were made following the announcement that the Green Deal, which offered cashback on eco-friendly building improvements such as insulating, new boilers and double glazing – was being scraped.
The Department for Energy and Climate Change (DECC) said it simply wasn’t viable to continue offering the incentive but assured consumers that they were working on a better value option.
Businesses planning to introduce energy-efficient measures should therefore look at what other schemes are available and weigh up the costs of installation against long-term gains before proceeding.
By Phil Smith