Energy UK has warned small and medium sized enterprises (SMEs) need more advice and support to cut their energy costs and make their mark in the shift to net zero.
In Small Business, Big Impact, Energy UK sought to address the barriers SMEs face when looking to decarbonise their businesses, noting how the Climate Change Committee (CCC) had already highlighted an “increasingly concerning policy gap relating to non-residential buildings”.
Access to finance and the overall costs of transitioning to lower carbon alternatives is among the key barriers Energy UK has identified, therefore it is calling for the British Business Bank to work with the government to establish an affordable loan scheme for SMEs investing in low carbon technologies and measures to reduce their energy consumption. This should be made available alongside impartial information.
The government should also review its capital allowances, business rates and VAT regime to ensure that its fiscal policy aligns with its 2030 targets for minimum energy efficiency standards in the non-domestic energy sector, as well as for the phase-out of internal combustion engine vehicles in line with the trajectory set out in the Zero Emission Vehicle mandate.
More widespread adoption of smart meters is also needed to help business track their energy usage, while also supporting the wider transition to net zero. Updating the Building Regulations to require that they are designed to be smart ready is one way around this, while the government should consult on mandating action by Energy Savings Opportunity Scheme participants on audit recommendations and consult on proportionally extending the scheme to include medium-sized companies.
It further stressed the need for a long-term regulatory landscape from the government that provides clear indicators for businesses planning further investments. Therefore, it wants to see government set out a roadmap for the non-domestic sector by publishing its response to recent consultations on minimum energy efficiency standards in the non-domestic sector and the phase out of fossil heating in business premises off the gas grid.
Other recommendations include seeing government strengthen the wording in the proposed new Section 161 of the revised draft National Planning Policy Framework to incorporate references to new buildings, in particular the need to make provision for the inclusion of solar panels on non-domestic buildings, and for the government to provide local authorities with a framework and the necessary support to develop and implement Local Area Energy Plans.
