How to get renewable energy for business

Switching business energy suppliers is a quick and easy way to cut the cost of your energy bills. Switching to renewable energy sources can help to cut prices even further, and might even help to enhance the image of your business.

For businesses, switching to renewables will likely begin either with the installation of on‑site generation (like solar panels or heat pumps) or a move to a certified green business energy tariff that’s backed by genuine renewable sources.

Five-point summary on renewable energy for UK businesses

• Small businesses should check planning permissions, site suitability, and legal requirements before installing renewable energy systems. A site survey and using government-approved (MCS certified) installers are crucial to ensure compliance and protect the investment.
• Options include solar panels, wind turbines, biomass, anaerobic digestion, geothermal heat pumps, CHP, and hydroelectric power. The right choice depends on your business’s location, roof space, energy usage profile and budget.
• Installation costs and payback periods vary by technology. For example, solar panels and wind turbines typically pay for themselves in 6–15 years. Larger systems require more upfront investment but can offer quicker returns over time. Combining on‑site generation with energy efficiency can significantly cut overall business energy spend.
• Renewable energy can lower energy bills, stabilise costs, reduce carbon emissions, and improve your business’s reputation. It may also provide new income through selling surplus energy and offer tax exemptions like the Climate Change Levy.
• Funding options include government incentives, loans, and leasing. Businesses can also choose 100% renewable electricity tariffs from suppliers such as Good Energy or Octopus Energy. It’s important to research suppliers to avoid misleading “green” claims.

Things to consider before installing renewable energy tech

But before installing any renewable energy technology, you’ll need to consider the following:

Planning permission and connection requirements

You need to confirm you’re choosing the right renewable option for your business, the building you operate from and the local area. Installation might mean you need to make alterations to your building.

In the UK, this might mean checking with your local council planning department, your Distribution Network Operator (DNO) for grid connection approval, and confirming whether any roof or structural works are needed before installation.

Business renewable energy site survey

This will help you determine the best renewable solution for your business. A good site survey will look at your current consumption (kWh per year), half‑hourly usage profile if available, available roof or land area, shading, access, and any opportunities to combine renewables with energy‑efficiency upgrades.

Regulatory and legal obligations

You’ll need to make sure your installer is government-approved under the Microgeneration Certification Scheme (MCS), to protect your investment by ensuring all renewable business energy products are installed to a high standard.

You may also need to comply with building regulations, health and safety duties, ESOS or SECR reporting if you are a larger organisation, and grid export rules if you plan to sell surplus energy back to the network.

If you’re planning on installing any type of renewable tech, you need to bear in mind that it will take a number of years to produce any sort of tangible return. That’s why it’s best that you own your business premises, or at least have a long-term lease in place, to make the investment worthwhile.

Many UK businesses now run a simple payback or ROI calculation over the expected system life (typically 20–25 years for solar PV) to check that savings and any export income justify the upfront spend.

What renewable business energy options are available?

There are a number of options for renewable energy in business locations, but finding the right one for your business depends on where it’s located and the amount you’re willing to invest.

For many UK businesses (and homes), rooftop solar panels or air‑source heat pumps are often the most practical starting points. Larger rural sites may also consider small‑scale wind, biomass or anaerobic digestion.

Here's a list of the main options:

• Wind power - Uses wind turbines to generate electricity for business. Suitable if you have acres of building-free land. Wind is usually better suited to rural, coastal or exposed sites in England, Scotland and Wales, and you’ll need wind‑speed assessments plus planning permission for most commercial turbines.
• Solar PV panels - Use sunlight to generate electricity. These are easy to install and can be fitted on the side of your building. Solar PV is one of the most common commercial renewables because UK rooftops can host panels without major disruption, and generation typically aligns well with daytime business electricity use.
• Solar thermal energy - Uses sunlight to heat the water stored in your hot water tank. These are easy to install and can be fitted on the side of your building.
• Biomass systems - Generate electricity and heat by burning or fermenting organic material, such as straw or wood pellets, with a combined heat and power plant.
• Anaerobic digestion - Generates heat and electricity by burning the methane produced by breaking down organic material, such as plant or animal waste. Suitable if you have a lot of space to store the fuels.
• Geothermal and ground source heat pumps - Use low-level heat naturally contained in the ground to provide both heating and cooling. These are fitted on the side of your building. Ground and air‑source heat pumps are increasingly popular in the UK as low‑carbon replacements for gas or oil boilers in commercial buildings, especially where there is no access to mains gas.
• Combined heat and power - Uses a CHP system to capture the heat produced by your electricity to heat your water.
• Hydroelectric power - Generates electricity from the water flowing through an immersed turbine or water wheel. These are site-specific but can provide a reliable energy source.

If installing on‑site generation is not practical, you can still support renewables by switching to a 100% renewable business electricity tariff from a supplier that genuinely backs its tariffs with renewable generation rather than only buying REGOs.

How much does renewable energy technology cost?

Here are some renewable energy options for your business, with their approximate capital costs and estimated payback periods:

Wind power

If you're considering a small, residential wind turbine, you should expect to pay between £3,000 and £5,000 per kW of output. If you need a larger, commercial turbine, you could be looking at an initial layout approaching the millions. 

Installation costs can include site assessment, permits, and grid connection, while maintenance costs are around 1% to 2% of the initial investment each year. Small turbines (20kW to 50kW) take three to fifteen years to pay back, while large turbines (1MW to 2.5MW) pay back within one to five years. Payback times are highly site‑ and subsidy‑dependent.

Solar PV panels

Anywhere between £16,000 and £60,000 (20kW to 50kW systems) for small to medium-sized businesses. Medium-sized businesses can expect to pay up to £75,000 for a 60kW system. 

For industrial businesses and warehouses, 80kW to 100kW systems cost between £50,000 and £120,000. Return on investment can take between two and six years if energy use and tariffs are favourable.

Solar thermal energy

Costs vary, but expect to pay between £3,000 and £8,000. This takes between 5 and 12 years to pay back. There's more detailed info at The Renewable Energy Hub website.

Biomass systems

Costs can go from £45,000 for a small 50 kW commercial system, and £55,000 to £65,000 for a typical 100 kW installation. Large 1 MW systems can exceed £300,000 installed. 

Cost will depend on boiler size and type of fuel. These can take between five and 12 years to pay back, possibly less time if you use waste wood instead of waiting for new tree growth.

Anaerobic digestion

Costs range from a few hundred thousand to millions of pounds, depending on the scale and complexity of the system. It's worth seeing if you're eligible for a government grant. If you have a medium-sized AD plant priced in the £2 million to £5 million range, payback could take from 8 to 12‑years.

Geothermal and ground source heat pumps

Costs range from £16,000 to £40,000 or more, depending on the size and complexity of the installation. These can take 15 years to pay back, though high‑usage sites with good design can do better.

Combined heat and power

CHP costs often focus more on total project cost and running‑cost savings than a single figure. Capital costs are highly size‑dependent and often much higher for substantial commercial units. Payback times depends on size, run hours and fuel prices.

Hydroelectric power

Costs range from a few thousand pounds per kW for very small schemes, rising to around £5,000 to £10,000 per kW once grid connection is factored in for many commercial‑scale projects. An 8kW hydroelectric power plant takes seven years to pay back. Find out more at The Renewable Energy Hub website.

When weighing up costs, remember to factor in maintenance, insurance, potential business rates implications, and any savings from reduced Climate Change Levy (CCL) or other schemes.

What technology will be the future for renewable energy for businesses?

The technology used to produce green energy for business is constantly evolving, which is why the cost of installing commercial renewable energy equipment is always coming down. Investment in the development of reusable energy also means more and more options are becoming available, so look out for the following sources becoming more mainstream over the coming years:

• Wave generation - The UK is perfectly placed to take advantage of the power created by the waves that crash on and around its shores every day. This tech will harness that power and convert it to electricity. The Carbon Trust estimates that this could generate 5 Terawatt-hour (TWh) per year, which is about 14% of current national demand.
• Enhanced geothermal - A sort of geothermal synthesis, this generates heat by using hydraulic stimulation to pump water into porous rock, instead of relying solely on harnessing geothermal hotspots. This technology is currently being used to dramatic effect in Cooper Basin in Australia, where a 25-megawatt plant can generate between 5,000MW and 10,000 MW.
• Solar power from space - We’re well adept at generating solar power from the ground, but new technology plans to harness solar power from space for use back on Earth.
• Artificial photosynthesis - This is a very sci-fi sounding way to generate methanol. Using nanotechnology – the manipulation of matter on a molecular or atomic scale – to store solar electromagnetic energy in chemical bonds, water is split to produce hydrogen before using carbon dioxide to make methanol.

Closer to home, UK businesses may see more practical innovations such as smarter building energy management systems, on‑site batteries, vehicle‑to‑grid (V2G) charging and local energy networks that make better use of existing renewables.

What are the benefits of renewable energy for my business?

Alongside reducing your carbon emissions and your energy bill, the renewable energy impact on your business could include the following benefits:

• Stable energy costs if renewable energy sources are not affected by price rises.
• Sustainable energy, as fossil fuels are limited.
• Another income if you can sell electricity back to the grid at a premium.
• More manageable, as planning your energy usage and needs will be easier .
• Reduces your emissions to help you meet carbon reduction targets.
• Improves your business reputation where customers and stakeholders value commitment to sustainability.
• Exemption from the Climate Change Levy (CCL), which is a government-imposed tax designed to encourage energy efficiency and carbon emission reduction among businesses.
• Access to energy subsidies may be available exclusively to businesses that use less energy (see below).

Many businesses also use renewables to support Environmental, Social, and Governance (ESG) strategies, B Corp certification journeys and public net zero commitments, which can improve access to tenders and finance.

Is renewable energy good for small businesses?

There are a number of reasons why a small business would choose to go with renewable energy, and the benefits go beyond simply saving money. Here are three reasons your business should be using renewable energy:

1. Become energy independent - Generating your own renewable energy means your business is less reliant on buying power from energy companies. This could be a big money saver, particularly in times when energy prices are volatile and rising all the time. You might even be able to make money by selling back to the grid any surplus power you generate. This was previously done through Feed-in Tariffs, but this ended for new applicants in 2019. It's since been replaced with the Smart Export Guarantee. 
2. Make your business more marketable - Showing that your business is environmentally aware and doing its bit for the planet can work wonders for its image. If you are using renewables, make sure you let customers and clients know about it to show your business is a forward-thinking, socially and environmentally conscious one.
3. Cut your carbon footprint - The climate crisis is fast becoming a climate emergency, which means we all have to do our bit when it comes to using energy responsibly. Using renewable energy will not only help to cut your business energy bills, but it will also help cut your carbon footprint. To find out more, check out our carbon jargon buster.

Even if installing your own system is not feasible, choosing a reputable green tariff can still lower your business’s carbon footprint and support wider investment in UK renewable infrastructure.

How to choose the right renewable energy for your small business

As you can see, the cost of installing renewable energy sources varies greatly, as does the return on investment, so it’s important to make sure you choose the right option for your business. It might even help to set up your renewables project as another department within your business, or even as a separate business entirely, with its own stakeholders, budget and targets.

If you choose to start a renewable energy company within your business, you’ll need to consider the following:

The ambitions of stakeholders

The first thing to do is draw up a list of stakeholders in the project, before getting input and insights from everyone involved. This will help you define exactly how and why you’re generating your own energy and give you a good idea of which alternative energy sources are best for your business.

The size and location of your business

The size of your business will determine the amount you can reasonably spend on the project, while your location will help you work out which source of renewable energy is best. If, for instance, your business premises are in a relatively open location and have a roof with a large surface area, then solar panels could be your best bet. 

If, on the other hand, you’re located near the coast, wind turbines could offer a more efficient option. The location of your business could also determine whether or not you’ll be able to get planning permission, which will also play a part in your decision.

The reasons for generating your own energy

Generating your own energy has many benefits, so you’ll need to figure out which are most important to your business when putting your plans together, taking into account the following:

• Lower energy bills
• Increased revenue
• Lower carbon emissions
• Greater sustainability
• Perception of your business

It can also help to map your options by sector and building type – for example, solar on retail roofs, heat pumps in offices or hospitality venues, and biomass or anaerobic digestion for agricultural or food production sites.

Are there funding options for renewable energy?

If you need help with the initial costs for commercial renewable energy installations, there are funding options available:

• Smart Export Guarantee - The Smart Export Guarantee (SEG) replaced the Feed-in Tariff and is now the main way new small generators get paid for exporting surplus renewable electricity to the grid in Great Britain. Find out more in our guide to selling energy back to the Grid.
• Renewable Heat Incentive - This provides financial support for the installation of renewable heat alternatives. Almost all of the renewable energy technologies outlined above can be covered with funding by the RHI. The non-domestic RHI closed to new applicants in March 2021 and new projects now fall under successor schemes such as the Boiler Upgrade Scheme, but this is mainly for domestic and small non‑domestic systems.
• Full-expensing for Capital Allowances - If you invest in certain energy-saving equipment, you can write off the total cost of the equipment against your taxable profit as a 100% first-year capital allowance.
• Boiler Upgrade Scheme - Provides grants of up to £7,500 for heat pump installations, helping offset the capital costs of low-carbon heating transitions. For more info, visit the Ofgem website.
• Industrial Energy Transformation Fund (IETF) - Supports energy efficiency and decarbonisation projects for industrial businesses, offering grants covering up to 45% of project costs (£10,000 to £100,000+). Visit the UK government website for more info.
• Salix Finance - This is a government-funded scheme providing interest-free loans to public sector organisations to carry out energy-efficiency improvements.
• Power Purchase Agreement - An agreement with a private funder, who will buy the generated energy at a set rate. They’ll own the renewable energy system and claim subsidy rewards.
• Lease Purchase Agreement - You rent the technology and pay for it using the income earned from government subsidies. After the lease is paid, you take ownership of the system.
• Business loan - You’ll own the system and pay back the business loan over an agreed time period. Your bank may give you more preferential rates and terms than a lease purchase provider.
• Client-funded - You pay in full at the time of installation and can claim the government subsidy rewards for 20 years.

Which suppliers offer renewable business energy tariffs?

A wide range of UK suppliers now offer green or 100% renewable tariffs for businesses, from specialist green providers to the big names in the market. Your main options are listed below.

Specialist green business suppliers

These suppliers focus primarily or exclusively on green energy and explicitly promote renewable business tariffs:

• Good Energy – 100% renewable electricity bought directly from thousands of UK generators; green business tariffs available.
• Ecotricity – Markets itself as Britain’s “greenest” supplier, offering 100% green electricity and green gas options to businesses.
• Green Energy UK/100 Green – 100% renewable electricity and 100% green gas as standard, including for business customers. 100 Green offers exclusively green tariffs to SME business customers.
• Octopus Energy – All smart tariffs backed by 100% renewable electricity, with dedicated SME and larger‑business products. Find out more in our guide to Octopus Energy.
• Barbican Power – Specialises in green tariffs for SMEs.
• Bryt Energy – Supplies 100% renewable electricity to business customers only.
• F & S Energy – Focus on renewable sourcing and green electricity for SMEs.
• SmartestEnergy – 100% renewable electricity tariffs for medium and large businesses, sourcing power directly from independent generators. Find out more in our guide to SmartestEnergy.

Big suppliers with green business tariffs

Most larger and “Big 6” style suppliers now offer specific green or renewable‑backed products to business customers:

• British Gas – Business electricity and gas with green/renewable options and carbon‑offset or REGO‑backed tariffs. Find out more in our guide to British Gas Business.
• E.ON / E.ON Next – 100% renewable electricity for many business tariffs, including SME and corporate options. Find out more in our guide to E.ON Next.
• EDF Energy – Business tariffs with 100% renewable electricity backed by REGOs. Find out more in our guide to EDF Energy.
• ScottishPower – Green business tariffs and renewable‑backed electricity products. Find out more in our guide to ScottishPower.
• SSE Energy Solutions – Renewable‑backed electricity and green business offerings for SMEs and larger sites. Find out more in our guide to SSE.
• Shell Energy, TotalEnergies, Engie, SEFE Energy, npower Business Solutions – Offer business supply with a mix of standard and renewable/low‑carbon contract options.

Other business suppliers with green options

Many independent business‑only suppliers offer green or part‑green tariffs, even if not 100% of their products are renewable:

• Yü Energy, United Gas & Power, Valda Energy, Marble Power, PE, Jellyfish Energy, Unify Energy, Fuse Energy – All active business suppliers that advertise renewable or low‑carbon options alongside standard tariffs.

Why switch to a renewable energy tariff?

If you can't generate your own renewable business energy, switching to a green energy tariff could be the next best thing. A green energy tariff is one where the power is generated by renewable sources. 

Most suppliers offering green tariffs will advertise that they're 100% renewable, but this doesn't necessarily mean the energy you get has been provided by wind or solar farms. This is where it gets a bit complicated.

When a supplier generates renewable energy, it's given a Renewable Energy Guarantee of Origin certificate. Known as REGO for short, the more green energy a supplier generates, the more REGOs it has. But suppliers can buy these certificates, which means they can generate energy using fossil fuels but then label their tariffs as green by buying enough REGOs to cover their production. This is known as greenwashing - it's perfectly legal but pretty unethical. 

How to compare renewable energy tariffs for business

When comparing renewable business tariffs, ask suppliers how much of their energy comes from owned or contracted renewable generation, not just REGOs, and check any extra cost per kWh versus a standard tariff.

It's also worth noting that the availability of 100% renewable or ‘green’ business tariffs varies by region, usage and contract length, so it’s best to compare live quotes rather than assuming every supplier can offer a green option on every meter.

If you’re switching to renewable energy, it makes sense to switch to an energy deal that can help you save even more money. To become a Bionic business, just enter your postcode to get started. We’ll find a business energy deal for you, including business gas and business electricity to meet the unique demands of your business.

Our tech-enabled experts can also explain the pros and cons of different green tariffs, including fully renewable electricity, mixed tariffs and contracts linked to on‑site generation or SEG export payments.

Renewable energy for business and green energy tariff FAQs  

Here’s an at-a-glance guide to some of the most frequently asked questions about renewable energy for business and green energy tariffs:

What is the best way for a UK small business to start using renewable energy?

For most UK small businesses, the easiest way to get started is by installing rooftop solar panels or heat pumps or switching to a 100% renewable business electricity tariff from a reputable supplier.

Do UK businesses need planning permission to install solar panels or wind turbines?

Many commercial solar installations are classed as permitted development, but UK businesses should always check planning rules with their local council and grid connection requirements with their DNO, especially for larger rooftop schemes or wind turbines.

How much does it typically cost a UK SME to install commercial solar panels?

A small to medium‑sized UK business might pay from around £16,000 to £75,000 or more for a 20kW to 60kW solar PV system, with larger warehouse roofs hosting 80kW to 100kW systems that can exceed £50,000 to £120,000.

Can a UK business get paid for exporting surplus renewable electricity to the grid?

Yes, if your business installs eligible renewable systems and has the right meter, you can earn payments for exported electricity through Smart Export Guarantee tariffs from participating UK suppliers.

What funding or grants are available for UK businesses investing in low‑carbon heating like heat pumps?

UK businesses and some small non‑domestic sites can benefit from support such as full‑expensing capital allowances, the Boiler Upgrade Scheme, and targeted industrial funds like the Industrial Energy Transformation Fund.

How can a UK business tell if a green energy tariff is genuinely renewable?

To check how green a business tariff really is, UK firms should look beyond REGOs and ask whether the supplier buys actual renewable electricity from generators or just uses unbundled certificates.

How does switching to renewable energy help UK businesses with net zero and ESG goals?

Using renewable energy helps UK businesses cut Scope 2 emissions, support net zero and ESG commitments, and strengthen their brand with customers, investors and supply‑chain partners demanding lower‑carbon operations.

How can Bionic help my UK business switch to renewable or green energy tariffs?

Bionic compares business energy deals from a panel of UK suppliers, including 100% renewable and green tariffs, to help your business cut costs, reduce carbon and choose contracts that fit your sites and usage.