Energy transition has become increasingly popular in recent years, but what does ‘energy transition’ actually mean? And why is now the best time for commercial and industrial (C&I) businesses to adopt it?

What is Energy Transition?

The term “energy transition” refers to a significant change in how energy is produced and used, moving away from fossil fuel-based energy systems to cleaner, more sustainable energy sources such as solar, wind, and battery storage. This shift is driven by concerns about climate change, rising energy prices, energy security amidst global conflicts, and the ambitions to use cleaner, more sustainable energy sources.

At Zestec, we coined the phrase “Energy Transition Culture” a few years ago to describe the will and drive to shift to an increasing majority of renewable energy sources. This culture is no longer just a cost of doing business; it is a mechanism for innovation, new market opportunities, and wealth creation.

Why Now is the Best Time for C&I Businesses to Adopt Energy Transition?

For C&I businesses, taking action on energy transition has shifted from being a “nice to have” PR-driven goal in the late 2010s to being a critical business need and serious responsibility today. This shift has been driven by a complex mix of economic, political, and ecological factors, boiling down to four critical factors:

1: Economic Benefits
Businesses can mitigate against rising energy costs and enjoy the lower costs that renewable energy solutions can provide. For instance, companies using battery energy storage systems can store excess energy and use it during peak times, effectively reducing energy expenditure.

2: Compliance Requirements
The UK now requires large C&I businesses to report on climate-related issues, based on rules from the Task Force on Climate-related Financial Disclosures (TCFD). On 16 May 2024, the Government announced updates to these rules, planning to introduce new standards by early 2025.

3: Reputational Benefits
Doing things right benefits your business’s resilience and sustainability. More than ever before, consumers, investors, and partners are favouring companies that commit to sustainability. Implementing renewable energy solutions like solar panels for commercial buildings showcases a commitment to environmental stewardship.

4: Fully Funded Solution
It’s now easier than ever before, with Zestec offering renewable energy with zero upfront investment through Power Purchase Agreements (PPAs). PPAs allow businesses to adopt renewable energy without the initial financial burden, making the transition economically viable.

How C&I Businesses are Successfully Adopting Energy Transitions

UK business owners have had it tough these past few years; inflation, rising energy costs, and supply chain issues to name just a few. Two things have markedly improved, however – the balance between sustainability and cost-effectiveness.

Making a sustainable choice for your business is now cheaper than ever before. Solar energy, for instance, costs significantly less than traditional fossil fuels, including coal and natural gas.

According to Solar Energy UK, the cost of electricity from utility-scale solar projects is now a third of the cost of electricity generated from traditional gas-fired power stations.

In 2024, Zestec helped a client achieve a first year electricity cost reduction of £84,800, a reduction of 38% against their grid electricity tariff, , as well as a 255-ton reduction of CO2 in their first year. This same project, delivered in 2019, would have saved that client only a fraction of these savings, achieving the same reduction.

See our case studies here to see businesses who have made the energy transition.

Embarking on an Energy Transition is Easy with Zestec

While you’re in the best position ever to embark on an energy transition, there’s no denying it can feel like a big change. Organisational change, significant investment, time, and planning to name just a few considerations. The good news is that Zestec is here to help at every stage with the power to make a difference to commercial and industrial businesses.

Offering a Power Purchase Agreement (PPA), Zestec can deploy funds from Octopus Energy Generation (one of Europe’s largest renewables investors and owners), for the installation, operation, and maintenance of your business’ renewable solution. In return, your business can begin to generate green energy on site, paying only for what you consume, at a lower price than the grid.

Corporates such as Amazon, M&S, Bombardier, Tesco, Nestle, McDonald’s, Lloyds, and HSBC are all entering PPAs to hedge against future volatile power prices at scale. It’s not just household corporate names; commercial real estate owners & operators, utilities and infrastructure organisations, retail and hospitality and leisure are all looking to reduce energy costs, save carbon, and do their part for the climate.

Find Out How Your Business Can Get Energy Transition Ready

The transition to renewable energy is not just a trend; it is a crucial step for businesses aiming to remain competitive, resilient, and sustainable. By adopting renewable energy solutions like solar panels and battery energy storage systems, businesses can achieve significant economic and reputational benefits.

At Zestec, we are clearly optimistic, but for good reason. On one hand, new standards of compliance on ESG reporting mean a brighter and greener future for the UK, where net zero promises become net zero realities.

On the other, the business and financial benefits are greater than ever, with energy cost stability, healthy supply chains, operational efficiency, and brand appeal among others.

Ready to start your energy transition journey? Contact Zestec today to learn more about our fully funded renewable energy solutions and how we can help your business thrive in a sustainable future.

Speak to one of our team on: 01202 018 800
Email us at: info@zestecgroup.co.uk

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