Small businesses should be able to take advantage of feed-in tariffs (FITs) and the Renewable Heat Incentive, the Federation of Small Businesses (FSB) has said.
In a report, Making Sense of Going Green, the FSB said small businesses should benefit from the schemes, which would see them creating their own renewable energy from micro-energy generators such as biomass boilers. This would reduce their energy bills, while increasing their competitiveness and reducing their vulnerability to fuel prices.
But it is concerned that the FITs have been set too low to attract many small businesses to take up small-scale renewable energy. It is calling on the Government to increase FIT rates, which would give small businesses a return on investment.
Speaking about the report, FSB national chairman John Walker said: “The need to cut carbon emissions and the predicted increase in the cost of energy in the coming decade means that the move to a low-carbon economy is more of an economic imperative than ever.
“To achieve the tough targets set by the Government, it must ensure that it makes economic sense for the UK’s 4.8 million small firms to go green.”
The FSB has also suggested that a scheme to provide up-front capital to small businesses wanting to install micro-energy technologies is key to stimulating demand for renewables in the small business sector.