Why SMEs have yet to make the most of potential energy savings

New research by the Carbon Trust has revealed that a lack of time and expertise to measure and reduce carbon emissions is preventing the UK’s small and medium businesses from grabbing their share of the potential £3 billion worth of business energy savings.

To help overcome this barrier, the Carbon Trust is urging businesses to act now and apply for an interest free Energy- Efficiency Loan to replace or upgrade existing equipment with more energy efficient versions. This financial year, we have made nearly £27 million available to fund the Energy-Efficiency Loans scheme. An increase of nearly £9 million from last year, it could support energy saving projects at almost 1,000 businesses. 

Read more about the Energy-Efficiency Loans scheme

Through our research we also discovered:

• A significant proportion of SMEs underestimate savings achievable – nearly 23% believe their business can only save between 1 and 4% on energy bills when the average figure is actually 10%.
• Competition and adaptation were cited as the key reasons to change – 1 in 3 of the businesses that did measure their emissions said it was to gain a competitive edge. And 32% stated they wanted to adapt now before legislation required them to.
• SMEs have a bigger role collectively to play than they currently think – 38% believe that they are responsible for less than 10% of the UK’s emissions. In reality they are responsible for around 20%.

Michael Rea, Carbon Trust Chief Operating Officer reinforced these findings:
“SMEs account for around 20% of the country’s overall emissions so it is essential they are supported to act on climate change.”

During the past three years the Carbon Trust has provided around £90m of support for SMEs to fund a range of services. As well as interest free Energy-Efficiency Loans, we offer free* Carbon Surveys, research grants, events, online tools and bespoke telephone advice. Last year, of the 5,000 on-site energy surveys conducted, two thirds were for SMEs and 70% of the calls taken by our dedicated Advice Line were from SMEs.

* Eligibility terms and conditions apply.