Businesses that invest in renewable energy could make average returns of 11 to 12 percent, with the potential for returns in excess of 20 percent, according to research by U.K. low-carbon advocacy group Carbon Trust.
New financial incentives, energy market trends and building regulations are combining to create what Carbon Trust calls “a compelling case” for British businesses to generate their own renewable energy, according to The Case For Renewables in U.K. Business.
The trust singles out government initiatives such as the renewable heat incentive and the feed-in tariff as two programs that are key to this “compelling case”. The research also highlights predictions that energy prices are set to grow by up to 37 percent by 2020 as a major factor affecting the financial success of investing in renewable energy.
According to the research, anaerobic digestion, wind, biomass heating systems and ground source heat pumps are some of the most attractive and practical renewable energy technologies for U.K. businesses.
Retailers and consumer goods retailers are leading the way in the adoption of renewable technologies, according to the report. In the U.K., Asda, Ikea, John Lewis and Marks & Spencer have all set a target of moving to 100 percent renewable energy.