In today’s economic climate, energy efficiency is a high priority for UK businesses looking to cut operational costs and reduce environmental impact. High gas prices can significantly increase overheads, especially for sectors with intensive energy needs. Here, we explore effective strategies, government schemes, and emerging technologies to help businesses cut gas costs and operate more sustainably.
1. Cut Gas Costs with Government Grants and Incentives
The UK government offers several grants and incentives to encourage businesses to reduce their energy consumption and adopt energy-efficient practices. For instance, the Industrial Energy Transformation Fund (IETF) supports industrial companies with projects that reduce energy use, especially in gas-intensive processes. Companies of all sizes can apply for funding to implement sustainable energy solutions like efficient heating systems or innovative technologies that lower gas dependency. Applications for the latest phase of this scheme are open until April 2024, so companies should act quickly to benefit from this opportunity (source: GOV.UK Energy Efficiency Support).
Additionally, the Recovery Loan Scheme offers SMEs low-interest loans to finance energy efficiency projects. These funds can help cover the upfront costs of modernizing gas systems or switching to lower-emission alternatives. Grants and subsidies for green energy solutions like heat pumps or combined heat and power (CHP) systems are available, as well, enabling companies to offset gas costs through renewable sources (source: Ofgem Business Energy Support).
To explore available grants tailored to specific industries or business sizes, the UK government’s Business Finance and Support Finder provides an easy-to-use tool. Local councils may also offer energy grants, so it’s worth checking their websites or contacting them for additional support options.
2. Adopt Energy-Efficient Gas Technologies
One of the most effective ways to cut gas costs is by adopting energy-efficient gas technologies. Innovations in gas boilers, heating systems, and controls mean businesses can improve energy use significantly. Modern condensing boilers, for instance, have higher efficiency rates than traditional gas boilers, often exceeding 90%. These systems reduce the amount of gas needed to heat spaces and process water by recapturing heat from exhaust gases.
Combined Heat and Power (CHP) systems are another advanced technology. CHP units generate electricity and capture usable heat simultaneously, making them highly efficient. Businesses that require both electricity and heating, such as manufacturing or large office facilities, can achieve substantial gas savings with CHP. Companies might also consider heat pumps—although primarily electric, they can work alongside gas systems to provide heat, reducing overall gas demand.
Investing in energy management systems can also help monitor and control gas usage effectively. Such systems allow businesses to track gas consumption, identify peak usage periods, and adjust settings for maximum efficiency.
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3. Explore Renewable Options to Supplement and Cut Gas Costs
Renewable energy sources can supplement traditional gas, cutting down costs and reducing emissions. The UK government has implemented the Green Gas Support Scheme to promote biomethane production, encouraging businesses to inject green gas into the national grid. Biomethane can serve as a renewable alternative to traditional natural gas and is an excellent way for businesses to reduce dependency on conventional gas.
For smaller operations, installing solar thermal systems can offset gas heating requirements. These systems use solar energy to heat water, reducing gas consumption for hot water systems in office buildings, restaurants, and other facilities that use significant hot water.
4. Cut Gas Costs by Conducting a Comprehensive Energy Audit
An energy audit can reveal hidden opportunities to cut gas costs by analysing how energy is used across operations. Many organizations, including the Carbon Trust, offer audit services that assess energy usage and provide recommendations for improvements. Audits can pinpoint areas of wastage, like old, inefficient heating systems or poor insulation, which cause heat loss and drive-up gas bills.
A thorough energy audit might suggest simple changes like upgrading insulation, installing efficient windows, or using smart thermostats to regulate heating precisely. Making these adjustments can significantly lower energy consumption without substantial upfront costs.
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5. Employee Engagement: Simple Practices to Cut Costs
Sometimes, changing daily habits can have a significant impact on gas savings. Encouraging employees to turn down heating when not needed, use natural lighting where possible, or close doors to retain heat can all contribute to lower gas consumption. Providing training on energy-efficient practices can foster a culture of sustainability and responsibility among staff members, making cost-saving measures more effective.
Many businesses report that small behavioural changes, such as reducing heating levels in underused areas, yield surprisingly large savings. Consider conducting regular meetings to remind staff about energy efficiency goals and progress.
6. Benefit from the UK Business Climate Hub
The UK government recently launched the Business Climate Hub, a one-stop shop for resources on how to reduce carbon emissions and cut energy costs. This hub provides practical advice on adopting sustainable practices, including upgrading to low-carbon technologies, applying for government grants, and monitoring gas usage. Resources like the Business Climate Hub can guide businesses in creating energy action plans and navigating the financial support available to achieve their sustainability goals.
Additionally, studies show that consumers increasingly prefer to buy from sustainable businesses, meaning that reducing gas consumption can enhance brand reputation and appeal to eco-conscious customers.
7. Make Use of Smart Metering to Monitor and Cut Gas Costs
Installing a smart gas meter can help businesses monitor usage in real time, identifying periods of high demand and potential wastage. Many gas suppliers offer smart meter installation at no additional cost, providing companies with data-driven insights to adjust usage and reduce bills.
Real-time monitoring can highlight times when gas usage spikes, allowing businesses to take corrective actions. For example, if peak usage occurs during specific hours, companies can investigate whether reducing heating slightly during these times could save costs without sacrificing comfort or efficiency.
8. Cut Gas Costs by Investing in Insulation and Building Efficiency
Poor insulation is one of the biggest contributors to high gas bills. Properly insulated buildings retain heat longer, reducing the amount of gas required for heating. Businesses can benefit from a range of insulation solutions, from upgrading wall and roof insulation to using double or triple-glazed windows.
For businesses operating in older buildings, retrofitting with improved insulation materials can significantly cut gas costs. Green loans are available from various institutions, specifically for energy-efficient building upgrades, providing affordable financing options for insulation improvements.
9. Switch to Low-Carbon Gas Alternatives to Cut Gas Costs
For some businesses, switching to low-carbon alternatives like hydrogen or biogas can be a viable option. Although currently less common, these fuels are expected to play a larger role in the UK’s energy landscape in the future as hydrogen infrastructure expands. Transitioning to a low-carbon gas supply could help companies reduce gas costs over time while meeting sustainability goals.
10. Consult with Energy Experts for Tailored Advice
Lastly, consulting with energy efficiency experts can provide tailored advice for businesses aiming to reduce gas costs. Experts in industrial energy use, for example, can suggest specific process improvements or recommend efficient gas technology suited to the business’s needs. Many government-supported programs, such as those run by Ofgem, also offer consulting services to small and medium-sized enterprises.
In summary, cutting gas costs is achievable through a combination of government-supported incentives, energy-efficient technologies, and strategic operational adjustments. By adopting these measures, UK businesses can improve energy efficiency, reduce costs, and support the national goal of achieving net-zero emissions by 2050.
