Are You Missing Out On Renewable Energy Savings?

Date: 20/02/23

The recent hikes in electricity prices have left many domestic and business consumers confused. Nine million domestic customers and tens of thousands of businesses are signed up to renewable-only tariffs, and so naturally these customers expected to avoid the price rises due to gas shortages and a runaway fossil fuel market. Yet they have experienced exactly the same eye-watering leaps in their energy bills as everyone else. So why is that?

One price for all electricity

The problem is that all UK electricity is bought from the same pot. All generation, whether from gas or nuclear, wind or solar, is lumped together into one pot, and so it is impossible to separate it into different prices. The price of this pot of power is dictated by the cost of the largest source – in this case, gas, and so your electricity price has a 98% correlation with the wholesale gas price, even if you have signed up to a ‘green’ tariff.

Renewable energy sources are providing an ever increasing portion of the UK electricity supply. According to the World Economic Forum, solar, wind, biomass and hydropower made up a record 40% of our electricity in 2022. However, until they are the responsible for the dominant share, electricity prices will continue to be dictated by the outdated energy pricing system based solely on the price of gas.

The government is currently undertaking a consultation on the system. This consultation is looking to reform the way that the electricity market operates and create a new pricing model to replace the current one which is, by their own admission, ‘designed for a fossil fuel only electricity system’, which we no longer have.

Direct renewable energy savings  

While it’s good to know that your environmentally friendly tariff is supporting renewable energy projects, it can still be very frustrating when your green energy is charged at fossil fuel prices. With the CEO of Enel, one of the world’s largest energy firms, this week stating that it will ‘take years’ for energy prices to return to the level they were before the war in Ukraine, cutting your bills has never been more important.

Currently, the only way to benefit financially from renewable energy is to generate your electricity directly. Since you are not part of the National Grid, you avoid being hit by rising gas prices and your business can enjoy essentially ‘free power’ from your solar backup generator without paying an artificially high cost.

This explains why one survey, by the Economist, found that one in three electricity intensive businesses were generating some or all of their own electricity. If you’d like your business to join them, on your construction site, road or rail project, or homebuilding development, then Think Hire are here to help.

Solar backup generators

Solar backup generator hire from Think Hire, allows you to power your site with no charge from the grid and no fuel costs for diesel generators. Solar backup generators can be used to power everything from site lighting to electric vehicles and plant, as well as welfare units and other site accommodation. And because the electricity you generate is never pooled with other sources, it won’t get priced unfairly like other renewable power.

Why wait for renewable energy to influence national electricity prices. If you’re missing out on renewable energy savings because of the outdated electricity pricing system, get in touch with Think Hire today. We guarantee to cut your operating costs when you appoint us as your renewable energy partner. Talk to our expert team about how solar backup generators can get you off the grid and onto guaranteed savings for your site.

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