Renewable energy is reshaping the way the world generates and uses power every day.
Wind turbines, great and small, are a familiar sight in the countryside and attached to buildings. Solar panels are no longer a niche addition to a handful of homes.
Renewable energy is more than a nice bonus in 2026. It is a serious business consideration as energy costs remain unpredictable and sustainability becomes a growing priority.
Society is embracing renewable energy, businesses are too. But what actually is it, and how does it work?
In this article:
Everybody has an idea of what renewable energy is, but few can put a precise definition on it.
The United Nations states: “Renewable energy is energy derived from natural sources that are replenished at a higher rate than they are consumed.”
Fossil fuels, such as oil and coal, cannot be replenished and therefore count as non-renewable energy sources.
There are four main types of renewable energy sources in operation around the world:
Other less widely used sources of renewable energy also exist, including:
For the remainder of this article, we will focus on the top four sources of renewable energy.
Solar energy uses photovoltaic (PV) panels to convert sunlight directly into electricity.
When sunlight hits the solar cells inside a panel, it creates an electrical current. This electricity can then be used to power your business, stored in batteries or exported back to the grid.
Solar panels generate electricity whenever there is daylight, although output is highest on bright, sunny days.
Wind power uses turbines to convert the movement of air into electricity.
As the wind blows, it turns the turbine's blades. These blades spin a shaft connected to a generator, which produces electricity.
The stronger and more consistent the wind, the more electricity a turbine can generate.
Hydroelectric power generates electricity using flowing water.
As water moves through a river, dam or dedicated hydro system, it passes through turbines. The force of the water causes the turbines to spin, driving a generator that produces electricity.
Hydropower is one of the oldest renewable energy technologies and can provide a reliable source of electricity where suitable water resources are available.
Biomass energy generates heat or electricity from organic materials.
These materials can include wood chips, agricultural waste, food waste or specially grown energy crops. When the biomass is burned, it releases stored energy in the form of heat. This heat can be used directly or used to create steam that drives a turbine to generate electricity.
Biomass is considered renewable because the organic materials used can be replenished over time.
Nuclear energy is not usually classified as a renewable energy source.
Unlike solar, wind, hydro and biomass energy, nuclear power relies on uranium, a finite resource that cannot be replenished naturally on a human timescale.
However, nuclear energy is often grouped alongside renewable energy as it produces very little carbon dioxide during operation.
While nuclear power can play an important role in reducing emissions, it is generally considered a low-carbon energy source rather than a renewable one.
If you sign up for a business energy contract with a company that specialises in green energy, you’re likely to be using energy that comes from a blend of each source listed above.
However, two of these types of renewable energy sources could be implemented on your premises to provide a stream of reliable on-site generation.
Solar panels and wind turbines are increasingly accessible to small and medium businesses.
Renewable solutions are no longer just about sustainability. They are practical tools that can decarbonise your energy supply, reduce your costs, help shield your business from energy market spikes and even provide a whole new revenue stream.
Every business is different, there’s no one-size-fits-all solution, and we can work with you to determine the right source for your business.
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.