Going green is not only good for the planet but it’s also good for business, bringing benefits like cost savings and enhanced brand reputation.
The Green Business Loan Scheme provides Welsh businesses with a package of support that helps them reduce carbon emissions and reap the commercial benefits of going green. In this article, we’ll explain what the Green Business Loan Scheme is and cover some key measures that you could take to become a green business.
How can your business benefit from the Green Business Loan Scheme?
The importance of becoming more sustainable is clear, but many businesses face barriers such as not knowing where or how to invest, and lacking the time or money to take positive action. That’s why green finance is so important and why the Green Business Loan Scheme has been developed. It aims to make it easier and more attractive for businesses to go green, offering a package of support which includes:
- Discounted fixed interest rates on green business loans for energy efficiency measures and low carbon heat installations, and no arrangement fees
- Access to fully and part-funded consultancy support that helps businesses understand their own path to decarbonisation
- Patient capital, with upfront capital repayment holidays and a loan term linked to project payback
3 main ways to become a green business
Below are some examples of sustainability measures you could consider, which the Green Business Loan Scheme could support. It’s a good idea to carry out an energy audit so you can identify the best measures for your business. An energy audit can give you insight into areas where energy is being wasted and highlight opportunities to reduce energy consumption, decrease your carbon footprint, and cut costs. You can find out more about energy audits in our article, What is an energy audit?
Switching to renewable energy
Moving to renewable energy sources is one of the best ways to reduce your dependence on fossil fuels. This in turn will help you future-proof your business against volatile energy prices and allow you to benefit from consistently lower energy bills in the long run.
The Green Business Loan Scheme could help finance the upfront costs of renewable energy measures, including:
Solar energy – the scheme can support the installation of solar thermal panels, which utilise sunlight to provide space and water heating, and solar photovoltaic (PV) panels, which harness sunlight to generate electricity. Solar energy can be a reliable source of energy to power your business, though it will depend on your company’s location and the average sunlight hours your business gets. Assessing your energy usage, your current electrical infrastructure, and availability of roof space are a few other factors to consider when deciding if solar is right for your business.
Wind turbines – if your business has ample land and wind resource then wind turbines might be a good option, particularly if you have high electricity demand.
Biomass – biomass boilers are best suited to businesses with large premises that take a long time to heat up, offering a sustainable alternative to traditional boilers. Biomass is considered a renewable energy source as its initial energy comes from the sun and because the regrowth of the plants offsets the carbon emissions released during the burning process. The Green Business Loan Scheme can also support measures such as biomass room heaters (with radiators) and biomass combined heat and power.
Heat pumps – while heat pumps require electricity to run, they’re more efficient than traditional heating and cooling systems and generally produce a lot more energy than they consume, making them a cost-effective and greener option. Instead of generating heat by burning fossil fuels, they move heat from one place to another using a refrigeration cycle. There are different types of heat pumps: ground source, which harnesses the heat that naturally occurs in the ground; air source, which extracts heat from the air outside; and water source, which absorbs heat from nearby water sources like lakes, ponds, and rivers.
Making building fabric improvements
Building fabric upgrades can significantly reduce the cost of heating and cooling your business premises. They can also offer a more comfortable and healthier environment for your employees and customers, as proper insulation will help prevent damp and mould.
Here are a few areas that the Green Business Loan Scheme could support:
Insulation – this includes wall insulation such as internal wall, external wall, and cavity wall insulation. The type you choose will depend on the age, construction, and design of your walls. Cavity wall insulation involves filling the gap between an internal and external wall with insulation material – this can often be done by injecting insulation material into the cavity from the outside. Solid wall insulation, on the other hand, involves adding a layer of insulation material to the inside or outside of a solid wall. Other areas you may want to consider to prevent heat loss include floor, loft, flat roof, and heating system insulation.
Draught proofing – cold air can get into your building in many ways, such as through keyholes and letter boxes, and around window frames, doors, floorboards, and skirting boards. Draught proofing can be a cheap and less intrusive method of reducing heat loss so your heating system doesn’t need to work so hard.
Window glazing – window glazing can be an effective way of improving the energy efficiency of your business. Different types of window glazing include:
- Double glazing: Two glass panes with a layer of air or inert gas in between for improved insulation, reducing heat loss, condensation, and noise transmission.
- Triple glazing: Similar to double glazing but with three glass panes and two air/gas layers, offering even greater thermal insulation and soundproofing.
- Secondary glazing: Adding an extra glass pane on the inside of existing windows for improved insulation, noise reduction, and security without replacing the original windows.
Improving your heating, ventilation, and air conditioning (HVAC)
HVAC systems are one of the largest sources of energy usage for industrial and commercial buildings. Old HVAC systems tend to be less energy efficient and may rely on fossil fuels. Making improvements in this area could therefore help you greatly reduce your energy bills and environmental impact.
There are various ways in which you could improve your HVAC sustainability. You might want to make some changes to your current HVAC setup – for example, installing a compatible smart thermostat to optimise your energy use. Or you may want to replace the whole HVAC system if your existing one is too outdated or inefficient.
Measures include:
Warm air heating - this typically works by drawing in air from the outside using a vent and then passing it over a gas flame or through a heat exchanger to warm it up. It then evenly redistributes the warm air into rooms via air ducts, vents, or grills. Modern warm air heaters are often fuelled by renewable energy sources and are designed to be highly energy efficient. They might be a more sustainable and effective option, particularly if you have a large commercial space like a warehouse or factory, for distributing heat evenly throughout the entire space.
Underfloor heating - this can also heat spaces more evenly and typically runs at a lower water temperature than standard radiators, making it cheaper and greener to run.
Air curtains - by preventing the inside air from escaping and outside air from entering, air curtains can reduce the pressure on your HVAC system.
Heating and cooling controls - implementing smart HVAC controls can help to optimise your energy usage based on occupancy and environmental conditions, allowing you to create a comfortable environment while saving on energy costs.
Heat recovery units – as the name suggests, heat recovery units capture and reuse heat that would otherwise be lost, maximising efficiency.
High efficiency fans – for example, destratification fans, which circulate air from the ceiling to ground level, producing an even temperature distribution.
These are just a few examples of projects that might be eligible under the Green Business Loan Scheme. You can find full details on the offer, including eligibility criteria, in our Green Business Loan Scheme key information. Or, if you have further questions, please feel free to get in touch with us.
