Benefits of on-site generation

On-site generation is becoming increasingly popular for organisations across the UK. It can help reduce energy costs and accelerate your organisation's goals to reduce your CO₂ emissions, particularly if you are aiming for net zero by 2050. In this article, we explain the main benefits the technology offers your business.

What is on-site generation?

On-site generation is the production of electricity or other forms of energy at the point of consumption. There are several technologies which can facilitate it, including solar panels, wind turbines, biomass generators and fuel cells. Many organisations look to on-site generation from renewable energy to move away from fossil fuels as part of an emission reduction strategy if working towards net zero.

It can save (and even make) your organisation money

The core benefit of on-site generation is helping businesses to save money on energy costs. Generating the power on-site will almost always result in a lower price-per-unit than if you were to buy off the National Grid directly. Better yet, if you generate more power than you use you can sell the surplus to the Grid directly, making it a revenue stream.

The ROI is improving all the time 

While the unit of electricity generated on-site will almost always be cheaper, what about the costs involved in setting up? While these can often be significant a combination of technology lowering the costs and improved efficiency means the RO is rapidly improving. In 2021, the typical timeframe was 5-7 years but that’s now been reduced to, on average, around 3-5 years before the savings start exceeding the total costs.

Increased energy security

On-site generation can help businesses become more energy-independent and less vulnerable to power outages, demand surges and volatile prices. Insulating your business from any significant price rises is particularly important during periods of volatility, as was the case during 2022.

Better efficiency 

The transport of power from one destination to another isn’t always efficient. There can be reduced energy density and transmission line losses, as well as losses when converting from AC to DC. These are either removed or minimised when you generate on-site, meaning you use a higher percentage of the power you generate as opposed to the power you buy. This is better for your P&L and better for your planet, which brings us to our final benefit.

Lower your greenhouse gas emissions

By using renewable energy sources, on-site generation can help organisations reduce emissions and support the transition to a clean energy future. The decreased use of greenhouse gases delivers emission reduction which can be a significant boost for your net zero ambitions.