About micro-generation
What is it?
Renewable micro-generation systems offer businesses the potential to produce useful energy ‘on site’, meeting a significant part of their heat and / or power requirements. Such systems usually also requires a complementary fossil-fuel based energy supply. Renewable micro-generation technologies are powered by clean and sustainable energy sources, and therefore they emit only very low levels of atmospheric carbon dioxide (CO2) - in some cases, none at all. A variety of renewable energy sources offer potential for commercially viable micro-generation systems - the sun, the earth, the air, wind, water, and biomass. In the future, hydrogen fuel cells may offer another viable renewable energy alternative.
There are two general types of solar applications; photovoltaic (PV) systems - generating electricity - and solar thermal systems - providing hot-water and sometimes also space heating. Naturally occurring heat in both the ground and the air can be used to drive heat pumps, like a fridge operating in reverse. The wind and flowing water can both be harnessed to power turbines to generate electricity, and biomass can be either burned (to produce heat and / or power) or converted to liquid biofuels. Some biomass systems also utilise natural degradation of waste materials to produce gas which in turn is burned to generate electricity. Find out more about different micro-generation technologies.
Why is it important?
First and foremost from a commercial perspective, renewable micro-generation offers potentially significant cost savings; any savings on energy costs go straight to the bottom line. A commercially viable system can reduce operating costs dramatically and offer short to medium-term pay back, sometimes as little as 3-5 years. Within the global context of dwindling fossil fuel stocks and increasing energy prices, this is a major attraction for many businesses.
Micro-generation using renewable energy also offers security of energy supply. This is important not only in terms of mitigating the adverse effects of rising operating costs on profitability, but also in allowing more effective business planning and continuity. Sudden and severe price shocks undermine business confidence.
As renewable systems use sustainable energy sources, they also reduce environmental impacts. This offers further commercial benefits by improving competitive advantage, improving company image, and making a contribution to certified environmental management systems. As businesses represent a major energy-consuming sector within society, commercial micro-generation using renewables also makes a vital contribution to pollution control and the mitigation of climate change.
Some renewable energy technologies, if they are adopted by large numbers of businesses, could even provide a more predictable source of electricity than large power stations. Micro-generation relieves pressure on the National Grid at times of peak demand, and enhances the diversity of our overall energy supply. In some cases, commercial micro-generation could provide back-up power in the event of a blackout. Finally, it is often also argued that small scale application of renewable energy technology brings about positive changes in the attitudes and behaviours of end users. Businesses employing renewable technologies have clearly recognized and are addressing the adverse impacts of over-reliance on fossil fuels, creating a clear visual signal to other businesses and communities in their vicinity.
