Nearly half of UK SMEs have expressed a new interest in renewable energy sources, a GetApp report reveals.
The results from GetApp's study reveal the detrimental impact the global energy crisis is having on small businesses whilst highlighting the ways companies are adapting through the use of renewable energy.
GetApp's study reveals how 85% of managers across the UK have seen a rise in electricity prices since the beginning of 2022, of which 30% of these businesses state it has increased by 11%-20%. Meanwhile, 91% of the companies that experienced rising electricity prices reported a negative impact on company performance. 71% of businesses believe the rising price of electricity is a problem that will likely persist for some time.
When managers were surveyed further regarding the controls they have in place in order to save energy, the majority (49%) said they have regulations in place, yet they are not properly adhered to. Whilst 17% of businesses have no regulations in place. Out of all four nations in the UK, English businesses were the ones that least followed the rules set to save energy (at 52%).
Renewable energy: are SMEs prepared to go renewable?
Many businesses have increasingly turned to more renewable energy sources due to the rise in prices. Currently, 34% of UK SMEs obtain part of their energy from renewable sources. Of all four nations, GetApp's survey demonstrates how English businesses use renewable energy most (37%), followed by Wales (33%), Northern Ireland (31%) and Scotland (29%). The majority of businesses (39%) obtain between 11-20% of their energy from renewable sources. Most source their energy from solar panels (71%), and hydroelectric power (38%).
Nearly half (49%) don't currently use renewable energy but are interested in starting. Of those that don't yet use it, 34% claimed that until this year, they didn't have the need, whilst 32% didn't know how to start. Meanwhile, 29% claimed it is too expensive to install renewable energy systems.
Overall, 88% of UK businesses that already use renewable energy plan on increasing their use in the future. Businesses in Wales expressed the most interest in going renewable in the next few years (at 94%).
David Jani, Content Analyst at GetApp UK, comments:
"Companies have had to adapt quickly to the challenges caused by the much higher energy prices in 2022. Overall, 71% of the businesses we asked believe it is going to be a longer-term issue, so effective action is needed. Energy management software and renewable energy were two significant examples of long-term solutions to cut energy costs. In both cases, around half of our sample were interested in adopting these energy solutions going forward, demonstrating that measures to save on bills are in high demand right now."
GetApp is the recommendation engine small businesses need to make the right software choice. GetApp enables SMEs to achieve their mission by delivering the tailored, data-driven recommendations and insights needed to make informed software purchasing decisions. For more information, visit www.getapp.co.uk.
Data for the electricity study was collected between October to November 2022, in which 388 SME owners, executive managers, or senior managers responded to GetApp's survey.
Carmina Solano Davis
Marketing Specialist (UK)