Driven up by the conflict in the Middle East, energy bills are a constant source of pressure on businesses in the UK and across the world.
Oil and gas prices steadily increase with little sign that they will come down in the near future.
While Net-Zero was beginning to suffer a decline in popularity and public support, the new energy crisis has revealed the issues of dependency on fossil fuels, given that they require global stability to be effectively managed.
Sustainable energy practices are back on the table, but businesses need to understand how to manage green transitions in a cost-effective way.
How can the costs of a green transition be managed by a business?
The upfront costs of transitioning to renewable energy sources can be off-putting for some businesses, even if they are more cost-effective in the long run.
This means that businesses looking to make the switch should consult financial experts to straighten out budgets and understand what grants and reliefs may be available to them.
Using the Annual Investment Allowance (AIA), businesses are able to claim 100 per cent tax relief on qualifying plant and machinery investments up to a limit of £1 million a year.
Solar panels, heat pumps and battery storage systems can all qualify for the relief and this may help you to manage the upfront cost.
Grants are more changeable and it is worth keeping an eye out for both local and national grants to determine eligibility and the extent to which they could offset costs.
One valuable grant is the Workplace Charging Scheme, wherein up to 75 per cent of the cost of purchasing and installing electric vehicle charge points, up to £500 per socket, with a maximum of 40 per site, can be claimed until 31 March 2027.
Although this grant primarily aims to support businesses that are working to utilise company vehicles, it also provides scope to assist employees who are looking to swap vehicles to escape rising petrol prices.
Is your business ready to make a green transition?
Given the ongoing geopolitical situation, it may be time to rethink your approach to how you power your business.
Seeking professional financial support can be the best way to budget for the upfront costs incurred by embarking on a green transition.
Our team can help you factor in the costs while also calculating how effective your plans will be in the long-term.
This can help you to appreciate the benefits of moving towards renewable energy.
It is hoped that the Government may detect the growing appetite for sustainability and offer more grants and reliefs accordingly.
If this does happen, we can help you access whatever support you are eligible for so that you can further embrace sustainability.
Even though Net-Zero recently suffered a hit in public perception, the energy crisis is revealing the weakness of fossil fuel reliance and could be the catalyst for a new, green revolution.
If you want to manage the costs of this, then we are here to help.
For help managing the financial implications of a green transition, get in touch with our team.
