Organisations around the world are experiencing unprecedented disruption and market uncertainty in the aftermath of COVID-19. In the current harsh economic climate, controlling business costs is more important than ever.
Reducing energy spend can provide effective relief from cost pressures. According to experts from the Carbon Trust, a 20% cut in energy costs can represent the same bottom line benefit as a 5% increase in sales.
The pandemic has not only touched everyone across the world, but it’s been a learning opportunity. We’ve managed to overcome various challenges that we didn't think were possible – like deploying infrastructure to enable remote working and remain connected. In that vein, as you steer your organisation on the path to business recovery, there are opportunities to quickly reduce your energy spend, generate revenue, and reduce your carbon emissions. With an energy management strategy in place, you can unlock opportunities to transform your energy infrastructure from a cost to an opportunity for growth.
But how can you achieve energy cost efficiencies without jeopardising your carbon reduction goals or incurring extra cost?
What's certain is that the traditional cost reduction methods of negotiating a better energy deal will no longer deliver the savings you require. Implementing energy efficiency improvements is a good place to start. Making changes to your energy infrastructure is a longer-term strategy – incorporating flexible technology solutions that can keep pace with how your business changes over time, help shield you against rising costs and energy supply disruption, and help you meet your sustainability goals.
There's a growing recognition that innovative distributed energy solutions are the answer to driving better operational, cost and environmental performance.
Installing on-site generation technologies like solar and Combined Heat & Power (CHP) will lower your reliance on the grid and reduce your costs. Internet of Things (IoT) energy insights technologies can monitor your energy consumption in real-time to provide granular visibility of energy performance and identify where your costs truly lie. Battery storage can also be used to fully optimise your energy and increase demand side revenue opportunities. You can thus unlock value from your energy, rather than treating it as a fixed cost.
At a time when cash conservation is paramount, your business may lack the capital to invest in energy efficiency measures and integrated distributed energy infrastructure. But this doesn't need to frustrate your sustainable energy ambitions.
Cost saving energy solutions can deliver such strong and predictable returns on investment that projects can be funded off balance sheet using flexible finance options.
Centrica Business Solutions' flexible finance solutions are supporting thousands of businesses globally to overcome barriers to investment. In this way, we can help you to unlock opportunities that reduce energy and operational costs, improve energy resilience and environmental performance, and meet your corporate social responsibility targets.
By moving from a capital cost model to an operating cost model, you can use energy as a service. You can then share in the cost and carbon saving benefits of distributed energy projects, without the risk, upfront investment or ongoing asset responsibility. You simply pay for the power/cooling/heat or other guaranteed outputs, such as carbon savings, over an agreed contract term.
With no capital expense, you can preserve precious cash reserves for core business investments. You will be able to balance both your commercial and environmental performance by taking advantage of advanced energy opportunities.
Our international research into future trends in sustainable business growth shows that sustainable energy leaders are also the most commercially successful. These businesses take a long-term view, with 63% of sustainable businesses having a detailed efficiency and distributed energy solution investment strategy.
More and more businesses are recognising the opportunities to take distributed energy investment off balance sheet. 41% of the 1,500 businesses we surveyed stated a preference for a longer term financial agreement, such as an Energy Performance Contract. Here, they can pay back the investment through ongoing operational savings.
Our broad range of financial solutions turn your energy challenges into business advantage, with no upfront investment. We build these flexible solutions around your specific business and energy goals, appetite for risk and financial objectives.
We support thousands of organisations across both the public and private sector to accelerate their energy, operational and environmental performance. By combining our global energy industry leadership with a strong balance sheet, we deliver lasting results.
Benefits of flexible finance from Centrica Business Solutions:
Watch our video to see how you can finance your sustainable energy ambitions:
Our managed Zero CAPEX portfolio solution brings together grid supply, on-site energy generation and optimisation services into a single, tailored package. This is repaid via a simple p/kWh rate. We manage commercial risk, deliver guaranteed savings, and future-proof your energy estate by providing access to new technologies as they become available.
Our ESA finances installation of multi-technology solutions, including operation and maintenance. This covers projects for up to 20 years and is funded either by Centrica or 3rd party finance. This option may cover large, integrated energy infrastructure projects across single or multiple sites.
See how Alton Towers Resort is using ESA finance to reduce energy costs by 12% per year:
Our DEP option finances on-site generation assets, such as CHP. The zero CAPEX agreement covers 7-15 years and includes all ongoing maintenance. You repay the investment via an attractive fixed p/kWh unit rate for the electricity generated. The recycled heat/cooling from CHP assets is provided free of charge.
See how Newcastle United Football Club is funding high efficiency CHP via our DEP:
Our FTA enhances the flexibility of DEP due to the option to replace or return the generating asset after 3-5 years, penalty free. This recognises the dynamic nature of your operation keeps pace with your changing business demands.
Our OOA expands the flexibility of our DEP option on a shared capital investment basis. You can make a CAPEX contribution at a level of your choice, which will reduce your DEP (p/kWh) fixed rate accordingly. After year one you can choose to invest more.
Our PPA finances on-site renewable generation assets, such as solar PV, for a period of up to 25 years. We provide the long-term funding, operation and maintenance of assets and you pay for the power consumed at a fixed rate (that is typically lower than purchasing electricity from the grid).
There are two key types of solar PPA:
Discover how Toyota used our PPA to finance the UK’s largest factory-connected Solar PV system:
Our CAPEX option applies to organisations wishing to use their own capital to benefit directly from distributed energy savings, and to claim financial incentives and tax benefits. Our optional Operation and Maintenance service packages simplify management and allow for long-term returns under a single contractual agreement.
Centrica Business Solutions finances and delivers integrated distributed energy projects. We provide full energy lifecycle support across insights; optimisation; efficiency; on-site generation & renewables; supply and trading, and electric vehicle enablement.
We partner with commercial, industrial and public sector organisations internationally to eliminate complexity and risk from sustainable energy strategies – providing flexible finance where required.
As your long-term partner, we can help you to become more efficient, resilient and sustainable – on your pathway to a low-carbon future.
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