A recent report reveals that 37% of business leaders in the SME sector of UK have no idea where their energy comes from, and there are increasing skepticisms about the green energy transition. The research commissioned by tem. unmasks the growing concerns within the business community on the transition towards renewable energy.
This is well-flagged by the research, which reports that nearly 40% of SMEs are unsure what source their energy is derived from-fossil fuel or renewable. The bottom line issue identified here in the report seems to be that energy suppliers are not offering sufficient information or guidance that will assist businesses in switching over to greener alternatives.
Among the reasons for their refusal to adopt green energy, concerns over cost dominate. In fact, 35 percent of business leaders fear that shifting to renewable energy will increase their costs of operation. The most cited problem is high upfront costs at 29%, followed by lack of direction at 19%, inadequate government incentives at 18%, and difficulty in changing at 18%.
Besides, almost a third of small- to medium-size enterprises stated that their energy suppliers did not even inform them about the origin of the electricity used by them, which helped create general mistrust in the sector. This lack of clarity is seen as an impediment to businesses that are eager to make the switch to greener energy sources but are unsure of the practical and financial implications.
Joe McDonald, CEO and Co-founder of tem., commented on the findings: “The energy sector has long been structured to favor large providers who continue to profit from a system designed decades ago for oil and gas sales. This deeply ingrained model clearly disadvantages small businesses, especially in a time when it’s already being borne on some of the biggest tax burdens ever.
According to the report, there is a need for improved transparency from the energy suppliers while governments must have more stringent incentives in place to prompt SMEs to switch over to renewable sources of energy. The study outlines the need for clearer, more readily available information and affordable solutions, which will facilitate SMEs in navigating the green energy transition, given the increased pressure on businesses to bring down their carbon footprint.
This is where the UK desperately needs to step up in creating an environment wherein SMEs could leap towards its sustainability goals without risking their financial viability.
