Renewable energy is no longer just a choice for eco-minded individuals making sacrifices for a cause.
It is an increasingly practical tool used by businesses - of all sizes - to reduce costs and shield their operations from volatile energy markets over the long term.
Falling technology costs have made many projects far more accessible than they were just a decade ago, meaning renewable energy is no longer a niche part of the UK's energy system.
Renewable sources generate a substantial proportion of Britain's electricity. In 2024/25, 42.1% of Britain’s electricity came from renewable energy, according to the Department for Energy Security and Net Zero.
However, getting started with renewable energy feels daunting.
It remains a relatively new technology, a new way of doing things, and we’re here to help you explore the fundamentals of renewable energy and whether using it could suit your business.
In this article:
There are four key types of renewable energy that your business could encounter:
Green energy drastically reduces carbon emissions. A study by the United Nations Intergovernmental Panel on Climate Change (IPCC) has listed the median level of CO2 equivalent per kWh of electricity produced for various sources.
No source of energy is completely free from carbon emissions due to the processes involved in manufacturing parts and equipment necessary to function, but renewable energy does emit far less than traditional sources.
Renewable energy is not a fad. It’s here, and it forms a huge part of daily life in the UK.
Since May 2012, almost one quarter (24.1%) of total UK electricity usage has been generated by renewable sources (solar, wind, hydro), according to iamkate.com’s National Grid: Live.
In a year-long period from June 2025, renewable generation rose dramatically to 43.4% while alternative sources, nuclear and biomass added another 19.8% to the blend.
For reference, 26.7% of electricity came from fossil fuel generation in the same period.
By the way, iamkate.com is a great resource for understanding the UK energy mix. Whether you’re a die-hard data nerd, chart lover or simply a fan of colourful pictures, there’s something for everyone here.
There are two main ways businesses can tap into renewable business energy:
Businesses seeking to reduce their carbon footprint may choose a dedicated renewable energy supplier.
ESG (Environmental, Social and Governance) targets encourage businesses to pivot towards sustainability and therefore green energy.
Signing a contract with a supplier committed to using renewable energy is the easiest way to meet targets and increase sustainability without requiring specialist equipment.
However, some suppliers may apply a premium to their green energy, meaning the shift may cost your business more than if you stick with a standard tariff.
The Net Zero transition has sparked a wave of investment from small-to-medium businesses in on-site renewable energy generation.
You will have passed solar farms lining the A-roads and railways of Britain, but on-site generation doesn’t need to be a mass development taking over vast swathes of land.
When was the last time your business used the roof - for any reason? What about that warehouse on your site? Every inch of disused roof space could be saving you money and shielding you from market volatility.
Solar panels are not the only form of on-site generation that could suit your business. Wind turbines are also increasingly fitted to sites, while biomass boilers are coming onto the scene.
Myths surrounding renewable energy costs are among the biggest blockers to businesses interested in making a shift towards on-site generation. We want to put the record straight.
Solar panels and wind turbines do come with upfront costs, there’s no denying that. However, like any investment, you’re setting yourself up to reap the benefits over the long term.
Take solar panels, for example. They typically deliver a return on investment (ROI) in 6-10 years. Every unit of energy you generate after breaking even is effectively free.
Panels typically come with a 25-year performance warranty meaning they are expected to retain around 80-90% of their original efficiency by then.
However, some panels could last much longer albeit at a reduced efficiency rate.
Renewable energy comes with an upfront cost. You need to invest in the solar panels and wind turbines capable of generating the cheap energy you’re aiming for.
Upfront costs can put some businesses off, but a range of grants, tax reliefs and incentives may help reduce the financial burden.
One of the most widely used schemes is the Annual Investment Allowance (AIA), which allows businesses to claim up to 100% tax relief on qualifying capital expenditure, including some renewable energy technologies.
Businesses that generate surplus electricity may also benefit from the Smart Export Guarantee (SEG), which pays organisations for exporting excess power back to the grid.
Depending on your location, sector and project type, additional funding opportunities may be available through local authorities, regional development programmes and industry-specific schemes.
As funding options change regularly, it is important to explore what support is available before making an investment decision.
We’ve heard about the benefits of renewable energy, but what about the common challenges.
Some of the main concerns around green energy are:
Every business is different. There is no single solution that works for every site. However, there are some stand-out attributes that make certain businesses ideal candidates for renewable energy generation.
Your business could stand to benefit if you:
Warehouses, manufacturers, farms, hotels, leisure facilities and office buildings can all be strong candidates for on-site generation.
It’s tricky to know where to start with renewable energy for business. The boom feels new and overwhelming. There’s a lot of noise. You can’t separate the truth from myths and rumours.
We get it. We can support you.
Troo exists to help businesses like yours make sense of their energy needs, simplify complex information and make smart decisions that lead to real change and reduced costs.
We are not here to sell you a quick fix. We're here to understand what matters to you, offer clear advice, and take ownership of the hard parts, so energy becomes one less thing to worry about.
Book a free energy health check today to explore renewable energy options for your business.