The industrial sector in the UK is overspending on energy by more than £2.2 billion per year, new analysis suggests.
Inefficient technology, equipment and controls are behind the huge loss, according to research done under the Energy Efficiency Financing (EEF) scheme which is a joint initiative between the Carbon Trust and Siemens.
Switching to cost-effective energy efficient equipment could help businesses find multi-billion pound savings, found the EEF.
The scheme helps businesses, especially SMEs, invest in energy efficient equipment at no upfront cost and then make repayments using the savings on energy bills. This includes low energy lighting, energy efficient motors, low carbon air conditioning and biomass heating.
Myles McCarthy, Managing Director of Carbon Trust Implementation Services said the figures show the “huge opportunity” businesses have to save energy and costs.
He added: “Wise businesses who ensure their operations are using energy efficiently in these difficult economic times will reap huge benefits. We’re seeing increasing demand amongst businesses for us to help them get to grips with energy efficiency and capture the associated cost savings. Often organisations struggle to determine the most appropriate solutions for their business and therefore do not have the confidence to progress and unlock these great opportunities.”
A small chain of luxury hair salons in England secured a seven-year financing deal worth £15,000 from the EEF scheme and expects to cut its energy costs by £35,000 over 25 years after installing solar panels.