Business Energy Advice

Save energy energy efficiency advice for business customers

For most businesses, the main reason for saving energy is financial. However, there are many other reasons why you should consider being more energy efficient, including minimising harm to the environment.

This guide details a number of actions your business could take to become more energy efficient.

Having read through them, draw up an action plan with the 10 priority items listed for attention.

Use a table like the one shown in appendix 1 to identify what you’re going to do, who will do it and when.

SmartStart benefits

4–5

It’s not always necessary to spend money to save energy, but where there is a cost

Managing your energy

6–7

it can often be minimal and repaid very quickly from the resultant savings. Nor does saving

Lighting

8 – 11

Office equipment

12 – 13

Space heating

14 – 15

Buildings

16 – 17

Air conditioning

18 – 19

Electric motors

20 – 21

Compressed air

22 – 23

Boilers

24 – 25

energy need to be complicated or take a long time to achieve. Many energy savings can be delivered quickly and simply.

Refrigeration

26 – 27

Process plant

28 – 29

Combined heat and power

30 – 31

Renewable energy

32 – 33

Funding sources

34 – 35

How npower business can help

36 – 37

Enquiries and complaints Sample action plan & energy policy

38 – 39

energy efficiency advice for business customers

5

Benefits of SmartStart Money matters (financial)

Mother Earth (environment)

There has always been a good financial case for saving energy, even

Oil, coal and gas are the main fossil fuels. When burnt directly

before the sharp increases in energy prices

(e.g. as in a gas boiler) at your premises, or indirectly (e.g. in a coal-

that have taken place recently. By minimising overhead costs, the

fired power station at a remote site), they produce harmful

profitability of any business could improve. So by using less energy,

by-products such as carbon dioxide (a so-called greenhouse gas).

or by gaining more from the same energy use, your business will

Carbon dioxide is widely accepted as one of the main causes of climate

operate more efficiently. This will lead to lower costs and higher

change. Climate change concerns us all as it can have dramatic effects

productivity respectively.

The cheapest unit of energy is the one you don’t use - but that’s not all. Electricity and gas bills have VAT added. By using less energy

on our climate and weather patterns. There’s a direct link between burning fossil fuels and the production of carbon dioxide. By saving energy, harmful emissions are also reduced.

you’ll also save on VAT, particularly useful if you aren’t VAT registered

At the Kyoto Earth Summit, the Government agreed to

or if your business is unable to fully reclaim all of the VAT. If you pay

binding targets for the reduction of greenhouse gas emissions

VAT at 17.5% you’ll most likely be paying the Climate Change Levy*

by certain dates. In order to help deliver on these targets, npower

too, which adds even more to your bills. This provides an even greater

business has produced this Guide to Saving Energy for its business

incentive to use less.

customers. A companion guide for domestic customers is also

For some businesses, energy savings of up to 30% may be achieved.# This could lead to much lower bills, without the need to spend lots of time or money to achieve them. And savings could be ongoing year after year.

There is a direct link between burning fossil fuels and the production of carbon dioxide, so by saving energy, harmful emissions are also reduced.

available.

Big Brother (regulation) In the UK and more widely throughout the European Union, regulations can apply to the way businesses use energy. This includes processes covered by the Integrated Pollution, Prevention and Control Regulations. Small businesses may be affected by the amendments to the Building Regulations as detailed in Part L2 of the regulations.

These amendments cover new build and certain refurbishment work, all with the aim of increasing energy efficiency.

Quality Counts (quality) Many businesses operate under a quality assurance scheme such as ISO14001 (Environmental Management), either because they recognise the benefits themselves or because their customers or suppliers insist upon it. Part of the quality assurance process requires each business to look at its energy use and find ways to improve efficiency.

* Heavy users of energy and those operating within certain designated business sectors may be eligible for a discount against the Climate Change Levy in exchange for a commitment to reduce energy consumption by agreed amounts over time. These agreements are generally made via the sector trade associations, where further information and eligibility conditions can be determined. #

The Carbon Trust ‘Better Business Guide’ available at www.carbontrust.co.uk

energy efficiency advice for business customers

7 5

Managing energy Responsibility Depending upon the scale and complexity of a business, managing energy could involve a team of people or it could be the part time responsibility of just one person. However, it does need to be defined, so that everyone understands their responsibility for energy management.

Policy Once the responsibility for managing energy is established, you should put in place a policy that best suits the business. For a small business with limited energy use, the policy shown at Appendix 2 may be appropriate. However for more complex businesses or those with more demanding energy needs, a bespoke solution may be needed.

The role of managing energy needs to be defined, so that everyone understands their responsibility.

energy efficiency advice for business customers

Lighting Check lighting levels You may have more light than you need. Removing an unnecessary 100 Watt incandescent bulb could save about £20 a year.

Turn off fluorescent lights when not needed A popular myth is that it’s not worth turning off fluorescent lights for short periods. This isn’t true. Turning off a single 65 Watt fluorescent fitting at break times could save around £4 per year.

Turn off unnecessary lights Each twin 58 Watt fluorescent fitting costs about £23 a year to run.

Rewire lighting controls for small groups of lights, or even individual lights Better control over what light you use is energy efficient. Each twin 100 Watt fluorescent fitting costs about £44 a year to run.

Fit a time switch to control fixed hours of lighting Each 70 Watt lamp lit all night, when part night operation would do, costs about an extra £14 per year.

Label light switches Only turning on lights that are needed will save money – a fitting with 4 x 18 Watt lamps will cost about £17 a year to run.

Fit daylight and/or occupancy sensors to lights For a group of 6 x 80 Watt fluorescent fittings, savings in the order of £51 per year could be achieved.

Replace incandescent bulbs with compact fluorescent bulbs Standard incandescent lamps (bulbs) are inefficient – 10% light and 90% heat. A 20 Watt low energy lamp in place of a 100 Watt incandescent lamp could save you around £16 a year.

Use task lighting rather than light the whole area A single 18 Watt task light instead of an overhead fluorescent light with 4 x 18 Watt tubes could save about £12 per year

Simple steps to saving energy

– enough to cover the cost of the task light.

Lighting

Replace 38mm fluorescent tubes with 26mm tubes

Every business needs lighting in one form or another and uses a

The need for artificial lighting can vary from hour to

significant amount of energy simply so that people can see to move

hour and day to day. This is because of atmospheric conditions, which

around, operate machines, play sports, etc. Retail outlets need display

are constantly changing and affecting the available natural daylight

lighting so that their goods are correctly lit to make them visible and

and because of the relative

Fluorescent fittings have been around a long time but modern technology has improved the energy efficiency of the fittings significantly

appealing. Lighting is used everywhere and comes in a variety of

position of the sun. Also many businesses have changing needs

increasing the lamp life. At the same time, colour appearance has been improved and flickering eliminated. Some can even be dimmed.

forms, some more energy efficient than others. Many will agree that

throughout their work hours. To be more energy efficient with

the best lighting comes from natural daylight. However, natural light

lighting, you need a system that produces the maximum amount of

isn't available in every situation nor is it available at a constant level,

light for the input power and is flexible and responsive to changing

so artificial light is here to stay.

circumstances. The control system is therefore crucial.

For each 65 Watt lamp substituted with a 58 Watt lamp, savings of £3 per year will result – more than the cost of the lamp.

This will usually work with lamps that have starters – excluding 8ft fittings. If in doubt, try one first.

9

energy efficiency advice for business customers

Lighting continued Consider whole life cost approach when buying lighting By replacing twin 80 Watt fluorescent fittings with new twin 58 Watt high frequency fluorescent fittings, energy savings in the order of £13 per fitting will result. Plus, you’ll have the benefit of lamps that last twice as long and operate flicker-free.

Replace or remove flashing fluorescent tubes A 100 Watt fluorescent tube flashing every couple of seconds could waste £72 worth of energy in a year.

Consider turning off external lighting Rather than leaving lights on all night, fit motion sensors. For a typical 300 Watt tungsten halogen lamp, you could save up to £20 a year, which is about the cost of a fitting. Where lights are required to be lit all night, choose discharge lighting – a 70 Watt high pressure sodium lamp rather than a 300 Watt tungsten halogen lamp saves around £42 over the year.

Consider: does external lighting need to be on all night?

Why not opt for sensor activated security lights?

Need to know more about lighting?

The following organisations can all help with queries about internal and external lighting and the various methods of control:

The Carbon Trust www.thecarbontrust.co.uk/energy Tel 0800 085 2005 UK Lighting Manufacturers' Trade Association www.lif.co.uk Tel 020 8675 5432

11

energy efficiency advice for business customers

Office equipment Only switch on what you need A photocopier left on unnecessarily could increase your energy bill by up to £194 a year.

Consider whole life cost approach when you buy equipment An energy star compliant laser printer could reduce your energy bill by over £19 per year.

Turn off computer monitors when you leave A 17” tube monitor left on unnecessarily could cost up to £37 per year.

Save up photocopying until you have a batch Photocopiers use a lot of energy when they’re first switched on and when they’re left on because they need to be warm to work.

For best performance, save up copies into a batch and then turn the copier off again. This could save you up to £194 a year.

Avoid copying documents unnecessarily Cutting down on paper, toner (or ink) and energy could lead to a saving of around £50 per year.

Enable energy saving features on all equipment Power consumption could be reduced by up to 80%. Enabling power save on a laser printer could save up to £11 per year or more.

Once equipment has been used, turn it off if it’s not needed again soon.

Avoid using screen savers as they rarely save energy Sometimes screen savers use more energy. Turning off a screen saver and activating the power save function on a computer monitor could save £25-£45 per year.

Keep photocopiers outside air conditioned spaces This may save up to £200 per year for each copier.

Avoid printing emails You can save paper, toner and energy by not printing documents and the energy alone could be worth £6 or more per year, per printer.

Office equipment Many offices have an abundance of equipment that uses energy.

This can include computers, printers, faxes, photocopiers, fans, etc.

Typically an office can be responsible for up to 30% of the energy used in some small businesses, so keeping this under control can make a significant difference.

Need to know more about office equipment?

The following organisation can help with queries about office equipment and the various methods of control:

The Carbon Trust www.thecarbontrust.co.uk/energy Tel 0800 085 2005

13

energy efficiency advice for business customers

Space and water heating Ensure thermostats are set to the desired temperature For every 1ºC of extra heat your heating bill increases by 8%. For warehouses, 16ºC is acceptable and 20ºC is usually acceptable for offices.

For hot water, between 60ºC and 65ºC is usually suitable for catering and washing to avoid Legionella.

Reset timers after clock change from BST to GMT If the space heating goes off an hour early, you could be paying for an extra hour of heat made up from portable heaters – up to £95 per heater per year.

Ensure radiators are unobstructed Using portable heaters to make up for insufficient heat can be expensive and costs up to £95 per heater per year.

Fit thermostatic radiator valves If your radiators are on full without any form of regulation, you could be overheating a room and increasing your heating bill.

Get a new boiler If your boiler is over 20 years old and you spend £1,100 a year on your heating bill, you could save around £330 simply by fitting a new condensing boiler.

Have boilers professionally serviced Maintaining your boiler could save you up to £120 per year, if you currently spend £400 on space heating bills.

Fit insulation material behind radiators on outside walls This could save you around £10 in a year, although circumstances do vary.

Turn off boilers during the summer months Using an immersion heater during the summer could save £20 per year, although circumstances vary.

Ensure hot water cylinder (calorifier) is well insulated If you spend £160 per year on hot water this could be halved with an insulated cylinder.

Ensure adequate insulation on all hot water pipes Insulate all hot water pipes, flanges and valves to prevent heat loss and cut down on your hot water bills.

Need to know more about space and water heating?

Space heating

Hot water

You need space heating to regulate the temperature for people

Hot water for catering and washing should be heated to 60– 65°C

(and sometimes for perishable stock) while they’re in the building.

to avoid Legionella. The temperature should be no higher to reduce

The Carbon Trust www.thecarbontrust.co.uk/energy Tel 0800 085 2005

You should match your space heating to the occupancy of the

excessive heat loss and limit limescale build-up.

The Heating and Ventilating Contractors’ Association www.hvca.org.uk Tel 020 7313 4900

building and regulate it to maintain the desired temperature.

The following organisations can all help with queries about space heating and hot water and the various methods of control:

(provides information on local contractors)

The Combustion Engineering Association www.cea.org.uk Tel 02920 400670

15

energy efficiency advice for business customers

Buildings Seal external doors and windows with draught excluders By fitting self-adhesive draught excluders to outside doors and windows you could save £20–£40 on a typical heating bill of £400.

Keep doors closed between heated and unheated areas This could reduce your energy bills by £20–£40 on a typical cost of £400.

Add a lobby to cut down on heat loss If your reception costs £100 per year to keep warm, £25 could be wasted by allowing heat to escape through a frequently used door.

Fit automatic sensors on loading bay doors If your loading bay costs £160 per year to keep warm, you could save about £40, depending upon how many times the door is opened, by adopting this measure.

Insulate cavity walls and roof spaces Prices will vary depending on circumstances but your investment could be recouped within 5 years.

Ensure room temperatures are thermostatically controlled If you spend £600 per year on space heating, you could reduce your energy bill by about £48 for each degree the temperature is reduced.

Draught excluders can reduce heat loss by around 10%.

Don’t heat unoccupied rooms Check to make sure that radiators are turned off in unused rooms.

Buildings Effective insulation and draught proofing is essential to reduce

Good insulation is best fitted during the construction or

heat loss from buildings and to limit noise and airborne pollution.

refurbishment of buildings when it is more cost effective and

Most buildings have scope for improvement.

less disruptive. However, there are still changes that you can make to existing buildings that aren’t due for major overhauls.

Need to know more about buildings?

The following organisation can help with queries about buildings and the various methods of control:

The Carbon Trust www.thecarbontrust.co.uk/energy Tel 0800 085 2005

17

energy efficiency advice for business customers

Air conditioning Ensure thermostats are set to the desired temperature For every 1ºC below 24ºC, you could be adding 8% to your air conditioning bill so check regularly that your room temperature thermostats are set correctly. Cooling to 23ºC or 24ºC is normally quite acceptable.

Reset timers after clock change from BST to GMT If the air conditioning comes on an hour early because the timer is set wrong, you could be paying for cooling before it’s needed. An extra hour’s cooling each day adds around 9% to your air conditioning bill.

Avoid simultaneous heating and cooling If you spend £40 heating a space in winter and a further £60 cooling the same space in the summer, your annual bill is £100.

But if the systems are both running simultaneously it could add up to £25.

Check humidity controls Unnecessary humidity control could double the energy required.

Replace air handling unit dampers with variable speed drives Variable speed drives could pay back within 3 to 5 years.

Use the right filters and keep them clean Blocked or incorrect filters could be adding to your energy costs and lowering the overall efficiency of your air conditioning plant.

Keep condensers clean Blocked, damaged or dirty condensers could add to the cost of your air conditioning bills by as much as 25% and may lead

If you have air conditioning, for every 1ºC below 24ºC, you could be adding 8% to your energy bill!

to inadequate cooling.

Remove or insulate all heat sources in air conditioned spaces Identify and eliminate all heat sources – uninsulated hot pipes, photocopiers, etc.

Minimise the use of other office equipment that generate heat One 17” desktop PC monitor left on unnecessarily could cost around £74 per year in direct energy costs plus a further £20 per year for additional air conditioning costs. Circumstances vary.

Minimise solar gain Control excessive heat from the sun by using blinds or shades.

All chilled water pipes should be well insulated By insulating chilled water pipes you could be saving on your energy bills, as the chiller plant could operate more efficiently.

Air conditioning

Portable air conditioners should reject heat directly outside Maximising the efficiency of portable air conditioners could save as much as £50 per year for each externally ducted unit.

Air conditioning is usually required to regulate the temperature for the benefit of people, but it’s only needed for as long as they’re in

Need to know more about air conditioning?

the building. You should match the operation of the air conditioning

The following organisations can all help with queries about air conditioning and the various methods of control:

to the occupancy of the building and regulate it to maintain the

The Carbon Trust www.thecarbontrust.co.uk/energy Tel 0800 085 2005 The Heating and Ventilating Contractors' Association www.hvca.org.uk Tel 020 7313 4900

desired temperature.

(provides information on local contractors)

19

energy efficiency advice for business customers

Electric motors Prevent unwanted motors running A 4kW motor turned off for an hour a day could save about £100 a year. A 50kW motor turned off for an hour a day could save over £1,200!

Slowing down a motor could make significant energy savings Fitting variable speed drives could lead to significant energy savings with paybacks between 3 and 5 years. A motor taking 14kW at 1,500 rpm and costing £1.19 per hour to run could only take around 1kW at 750 rpm and cost about 9p per hour to run.

Use direct drives rather than belt drives A 12kW motor driving a pump directly, rather than via a belt, could save about £260 throughout the year.

On belt driven systems, ensure pulleys are properly aligned A 10kW motor driving a pump with pulleys that are not properly aligned could add £220 to the annual energy cost.

Changing pulley ratios on fixed speed motors could lead to significant energy savings Slowing a motor down by simply changing the pulley ratio is very cost effective for fixed speed motors and could achieve paybacks in under a year. A motor taking 6kW at 3,000 rpm and costing 51p per hour to run could take less than 1kW and cost less than 7p per hour to run at 1,500 rpm.

Connect oversized motors in permanent star configuration An oversized motor costing £200 per year to run normally could cost £180 if connected in permanent star formation.

High efficiency motors are not much more expensive than standard motors and could save around - 3% on your energy bills.

Use high efficiency motors A high efficiency EFF1 rated motor used in place of a 25kW basic motor running continuously all year, could save about £400.

Electric motors Electric motors are major users of electricity in industrial plant and

Consider what the motor is actually doing. Is it doing useful

commercial premises. Motive power accounts for almost half the

work? If not, turn it off.

total electrical energy used in the UK and for nearly two thirds of industrial electricity use.

Need to know more about motors?

The following organisation can help with queries about motors and the various methods of control:

The Carbon Trust www.thecarbontrust.co.uk/energy Tel 0800 085 2005

21

energy efficiency advice for business customers

Compressed air Consider heat recovery It could yield up to 40% of the compressor’s input power as a ‘free’ heat source.

Ensure compressed air is used appropriately As an energy source, compressed air costs 10 times that of electricity (90% is wasted as heat in the compressor) so it should be used sparingly. Using compressed air to dry products when a simple 3kW blower would do, means that you could be wasting more than £2 for each hour of continuous use, maybe as much as £4,000 in a year.

Locate and fix air leaks If you have a 30kW compressor running on load for 8 hours per day and 40% is wasting away, then you could be losing the equivalent of £1,600 per year.

Switch off compressors when not needed A 30kW compressor running offload over lunchtime all year round, could be costing you over £200 a year.

Maintain compressors properly A 15kW compressor running inefficiently could be costing you over £850 a year.

Reduce compressed air generation pressure Compressors that cost £1,500 a year at 7 bar pressure could only cost around £1,400 at 6 bar.

You could save up to 30% by implementing a few very easy measures.

Avoid unnecessary filtering or drying Providing ultra clean air when basic filtered air is all that is required could be costing you dearly in energy and filters.

Drying also costs significant amounts as the air has to be cooled to separate the moisture. Ensure that you are filtering and drying to the required standard and no more as this could lead to good financial savings.

Ensure that multiple compressor installations are properly sequenced Exact savings will depend on your own system.

Ensure air inlets are clear and unobstructed If your 40kW compressor is drawing air from within a room with an ambient air temperature of 33oC, you could be adding about 4% to the running cost, which could mean an extra £800 per year, based on a 40 hour week.

Isolate redundant pipework to areas that no longer need compressed air Exact savings will depend on your own system.

Compressed air Compressed air is a convenient and often essential utility, widely used

For example, it costs up to ten times more to run air tools than their

in industry. However, it takes a lot of energy (usually electricity) to

electric equivalent, because only 10% of input energy to a

Need to know more about compressed air?

generate compressed air and consequently it’s very expensive.

compressor is doing useful work. The other 90% is rejected as heat.

The following organisations can all help with queries about compressed air and the various methods of control:

Up to 30% savings could be possible by some simple good

The Carbon Trust www.thecarbontrust.co.uk/energy Tel 0800 085 2005

housekeeping measures, often achievable at no or low cost.

British Compressed Air Society www.britishcompressedairsociety.co.uk Tel 020 7935 2464

23

energy efficiency advice for business customers

Boilers Replace old boilers All modern boilers have a better efficiency than their older counterparts so replacing an old boiler with a new one could save as much as 30% depending upon individual circumstances.

Downsizing a boiler could lead to savings Boilers were often oversized, so there may be an option to downsize, which could lead to additional savings.

However, replacing a boiler can be an expensive option and may cause considerable disruption, so it may be worth considering other measures first.

Insulate all hot water pipes, flanges and valves Insulate all hot water pipes, flanges and valves to prevent heat loss and you could save up to 10% of supplied energy.

Ensure the boiler is only running when it needs to Ensure the boiler is only heating to the required temperature Deal with variable needs for heat Where there’s a variable need for heat in particular areas, ensure that the steam or hot water pipes can be isolated when not needed.

Check for water or steam leaks and rectify as necessary Ensure servicing of boilers Boilers should be professionally serviced at least once a year to ensure optimum efficiency.

Insulate boiler casing Insulate (or add extra insulation) to the boiler casing. Consult an expert.

You could save up to 10% of supplied energy by insulating all hot water pipes, flanges and valves.

Act to detect problems with boilers Regularly monitoring flue gas temperatures and the composition of the flue gas itself can lead to early detection of a problem with the boiler. Use an expert, or have automatic monitoring equipment fitted.

Ensure that a minimum number of boilers are running In multiple boiler installations, a sequencing control device should be used to ensure that the minimum number of boilers are running fully loaded, rather than all boilers running on part load.

Maximise condensate Maximise the amount of condensate being returned to the boiler, as this could save heat energy and save on water treatment costs. Consult an expert.

Boilers

Position new boilers effectively

Many boilers are small and compact and are used for space and water

It’s worth noting that not all of the heat produced by a boiler is

heating applications, particularly in the smaller commercial and retail

useful. Some is lost up the flue, some through the boiler case and

business sectors. Some larger buildings and many industries will have

some through leaks in the system. With steam boilers heat will also

much bigger boilers (or a combination of boilers) and these need to

be lost during blowdown (a process that helps to prevent the boiler

be considered more specifically than the smaller, individual packaged

clogging up with particles left over when water is converted to

boilers. Larger boilers may be providing heat in the form of hot water

steam). Further losses will occur if the condensate (what’s left when

or steam, depending upon the need, and they tend to be located in

the steam turns back into water) is not collected and re-used.

specific plant rooms.

If you’re considering getting a new boiler, site it as near to the heat demand as possible.

Need to know more about boilers?

The following organisations can all help with queries about boilers:

The Carbon Trust www.thecarbontrust.co.uk/energy Tel 0800 085 2005 The Heating and Ventilating Contractors’ Association www.hvca.org.uk Tel 020 7313 4900 (provides information on local contractors)

The Combustion Engineering Association www.cea.org.uk Tel 02920 400670

25

energy efficiency advice for business customers

Refrigeration Is cooling really needed?

A freezer cooling 2ºC lower than necessary and costing £190 a year to run could be wasting around £30.

Minimise the number of times that doors are left open Each time the door is opened the cold air escapes and warm moist air enters, both of which lead to greater energy use.

The warm moist air has to be cooled down and in the process ice forms, leading to more frequent defrosting as the ice builds up.

Keep evaporators and condensers clean and unobstructed If your freezer costs £1,500 a year to run, then it could cost you an extra £150 if you allow the evaporator temperature to rise by 3ºC, twice this amount if the condenser temperature also rises by 3ºC.

Fix all refrigerant leaks Refrigerant gas is expensive and lack of it will severely limit the performance of your system and add to the running costs.

Keep door seals in good condition Replacing a bad door seal with a good one will often pay for itself in less than 12 months.

Insulate refrigerant pipes Pipe insulation is very good value for money and will keep running costs down. Often the outlay can be recovered in less than 2 years.

At little or no cost, your business could save up to 20% off your refrigeration energy consumption costs.

Ensure adequate insulation around the cooled space Insulation is very good value for money and will keep running costs down. Often the outlay can be recovered in less than 3 years.

Refrigeration Refrigeration energy consumption costs British industry some £300

A small percentage reduction in refrigeration energy could represent

Need to know more about refrigeration?

million a year and rising. In certain sectors – notably food and drink,

huge financial savings. Many refrigeration plants can be improved to

The following organisations can all help with queries about refrigeration and the various methods of control:

chemicals, food supermarkets and cold storage, it accounts for

save up to 20% of their energy consumption. Much of this can be

The Carbon Trust www.thecarbontrust.co.uk/energy Tel 0800 085 2005

a significant proportion of overall site energy costs.

done at little or no cost with paybacks on investment of well under two years being the norm.

The British Refrigeration Association www.feta.co.uk Tel 0118 940 3416 The Institute of Refrigeration www.ior.org.uk Tel 020 8647 7033

27

energy efficiency advice for business customers

Process plant Shut down unnecessary plant Preventing any unwanted plant from running will save the full input power to the plant. For example, a 15kW kiln turned off at night when not needed could save over £2,000 in a year.

Plan for energy efficiency in new installations An investment in energy efficiency at an early stage could yield good results in the longer term.

Ensure plant is used at its optimum level It’s always better to run plant at its optimum, as this is when efficiency is greatest. At quiet times, it may be better to shutdown the plant and allow for the workload to build up again.

Monitor energy performance of key processes Monitoring consumption patterns on a regular basis will help keep track of costs, but may also give an early indication of equipment failure, as increasing consumption is often associated with imminent plant failure.

Ensure plant is properly maintained Poorly maintained plant could use up to 30% (sometimes more) energy for the same production and is more likely to break down.

Consider options for improved controls for existing processes

Why leave plant switched on when it’s sitting idle?

A control system that maximises throughput but minimises costs is the ideal set-up and could lead to savings.

Consider opportunities for heat recovery This could yield up to 40% of your compressor’s input power as a ‘free’ heat source.

Process plant Process plant covers a diverse range of equipment, including dryers,

Process plant is often overlooked when people are thinking about

furnaces, baking ovens, mixers and blenders, crushers and grinders,

energy efficiency because it’s seen as too specialist. Also product

tanks and vats, treatment booths and many others used for specialist

quality comes first and there’s often a great reluctance to change

jobs in industry.

anything in case the product is affected.

Need to know more about process plant?

The following organisation can help with queries about process plant and the various methods of control:

The Carbon Trust www.thecarbontrust.co.uk/energy Tel 0800 085 2005

29

energy efficiency advice for business customers

31

Combined heat and power Combined Heat and Power (CHP) is the simultaneous generation of

Most CHP plants run on natural gas and fuel inputs. Electricity

heat and power, usually electricity, in a single process. Because the

outputs from Good Quality CHP are exempt from the Climate

heat is recovered and used, the overall efficiency of the process is

Change levy.

much greater than the more traditional methods of generating electricity where the waste heat is generally discarded.

The Government is promoting CHP as a key technology and is looking to substantially increase both the output and the number of plants operating by 2010.

CHP plant is available in a wide range of sizes and therefore can be tailored to many applications.

CHP plant is capital intensive. In the right circumstances energy services companies may fund the plant in exchange for long term contracts to supply heat and power from the plant.

Generally, CHP plant produces twice as much heat as power, so where there’s a need for heat (or cooling) and power in the ratio 2:1 for long periods (typically 4,500 hours per year or more), CHP may be a valid option. The heat doesn’t need to be used directly where the CHP plant is located. However, the further it needs to travel, the greater the costs become and the overall efficiency will also drop. By using absorption chillers, it’s possible to produce cooling from heat but this will add to the cost.

By utilising waste heat, CHP is a more efficient process than traditional generation methods.

Need to know more about CHP? The following organisations can all help with queries about CHP and the various methods of control:

The Carbon Trust www.thecarbontrust.co.uk/energy Tel 0800 085 2005 Combined Heat & Power Association www.chpa.co.uk Tel 020 7828 4077 Combined Heat & Power Club www.chpclub.com

energy efficiency advice for business customers

Renewable energy Renewable energy is the name given to energy sources that occur

Renewable energy hasn’t been widely available in the past but

naturally and continuously in the environment such as energy from

it’s a developing area and will continue to grow into the future.

the sun, wind, biomass, river flows, waves, currents and tides.

Renewable energy is exempt from the Climate Change Levy.

They tend to be inexhaustible supplies of energy, which are mostly non-polluting.

Renewable energy is exempt from the Climate Change Levy.

Need to know more about renewable energy?

The following organisations can all help with queries about renewable energy and the various methods of control:

The Renewable Power association www.r-p-a.org.uk Tel 020 7747 1830 The Energy Saving Trust www.est.org.uk Tel 020 7222 0101

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energy efficiency advice for business customers

35

Funding for energy efficiency Own resources Many energy efficiency opportunities cost nothing to implement and others can be done at minimal cost, making them very attractive propositions. The payback period can also be quite short. However, some energy efficiency improvements may require greater investment (time and money) so will require more careful consideration. When your own resources are not sufficient to cover all of the cost, there may be help available from the following sources: Grants Grants are available to assist with the capital costs of an energy efficiency investment. All have eligibility criteria, so not all businesses will qualify. Grants may be for specific customer groups, particular types of investment projects, or only available in certain areas of the country. A good starting point for information on grants is the Energy Saving Trust visit www.est.org.uk or call 020 7222 0101.

The Enhanced Capital Allowance scheme The Enhanced Capital Allowance (ECA) scheme offers tax incentives to businesses that invest in energy saving equipment and enables them to claim 100% first year capital allowances on investments in approved energy saving equipment. Businesses are now able to write off the whole cost of their investment against their taxable profits for the period during which they make the investment.

The energy technology list contains all of the equipment that qualifies for the ECA scheme. The list is updated regularly. The technologies that currently appear on the Energy Technology List include: air-to-air energy recovery, automatic monitoring and targeting, boilers, combined heat and power (CHP), compact heat exchangers, compressed air equipment, heat pumps for space heating, HVAC zone controls, lighting, motors, pipework insulation, refrigeration equipment, solar thermal systems, thermal screens, variable speed drives, warm air and radiant heaters. For full details

Loans

visit the scheme’s website at www.eca.gov.uk or call

Interest free loans for energy efficiency investments may be available,

The Carbon Trust Energy Helpline on 0800 085 2005.

particularly for Small to Medium Enterprises (SME’s), where the loan is repaid from the energy savings realised. The amount available from

Where greater investment is required there are many sources of funding.

The Carbon Trust scheme is currently £5,000 to £100,000 at 0% interest and no fees. More details are available on their website at

www.thecarbontrust.co.uk/energy/pages/page_72.asp

energy efficiency advice for business customers

Help from npower

Help from other organisations

Business

The Carbon Trust has been established by the

npower business has an energy efficiency helpline that provides

Government to provide a range of programmes

access to industry experts who are skilled in a wide range of

and initiatives to help businesses exploit

energy-related disciplines. They provide informed and up-to-date energy efficiency advice for business customers we can answer your questions and provide details of other specialist organisations that may be able to help further. npower business energy efficiency helpline

0845 070 4019†

Residential npower has a booklet called ‘Using Electricity and Gas Efficiently in your Home’ which you can get by calling our free energy efficiency helpline line. We can also provide fact sheets containing low-cost

ESTA The Energy Saving Trust (EST) is the UK’s leading

www.esta.org.uk or phone 07041 49 20 49

organisation working towards

The Chartered Institution of Building Services Engineers (CIBSE)

the sustainable and efficient

commercial opportunities available by moving towards a low carbon

produces a range of publications (there may be a charge) on energy

use of energy by households and small organisations. The EST runs

efficiency issues related to buildings. CIBSE also offers professional

economy. The Carbon Trust is the UK’s principal energy efficiency

a network of local Energy Efficiency Advice Centres (EEACs) providing

training, education and membership services. For further

information and advice programme for organisations in both the

free, impartial and bespoke advice to small businesses and

information contact:

public and private sectors. The Carbon Trust provides information, advice, practical help and financial support to help businesses save

households throughout the UK. EST provides practical assistance and advises on potential sources of grant funding to help SME’s realise the

CIBSE

cost and environmental benefits available from the adoption of

www.cibse.org or phone 020 8675 5211

energy. They promote best practice through free publications and

energy saving measures. The EST is a non-profit organisation funded

events. They also encourage action with advice and support at every

by government and the private sector. For further information on

stage from planning to design, implementation and management.

these issues or advice on energy efficiency measures, contact:

For further information on these services or for advice on energy efficiency measures, contact:

hints and other ways to use energy efficiently. Customers may also

The Carbon Trust

be able to get advice on grants towards a range of energy efficiency

www.thecarbontrust.co.uk/energy or phone 0800 085 2005

measures. This may include financial help towards insulation,

37

replacement boilers and heating controls, energy efficient appliances

The Energy Institute provides individuals and organisations with professional training, education and membership services in energy

The Energy Saving Trust

and environmental management and awareness. It is an NVQ delivery

www.est.org.uk or phone 020 7222 0101

centre and accrediting body for a variety of company and university courses. For further information contact:

Other sources of information:

The Energy Institute

Further information on the Climate Change Levy and

www.energyinst.org.uk or phone 020 7467 7100

and low energy lighting.

Contact the Carbon Trust to access the following services:

Climate Change Agreements can be found on the Department

npower residential energy efficiency helpline

• •

for the Environment, Food and Rural Affairs (DEFRA) and

The National Energy Foundation manages the Energy Efficiency

HM Customs and Excise websites:

Accreditation Scheme which provides independent verification of the achievements of organisations implementing energy efficiency and

building design

www.defra.gov.uk/environment/climatechange/index.htm www.hmce.gov.uk/business/othertaxes/ccl.htm

Free on-site energy surveys, conducted by a professional energy

The Energy Systems Trade Association (ESTA) is an energy

The National Energy Foundation

consultant who will draw up an action plan showing how your

management trade association, focusing on demand side energy

business could save money, save energy and reduce emissions

efficiency of buildings, building services and process services in the

www.nef.org.uk or phone 01908 665555

(usually for larger customers spending over £50,000 per year

non-domestic sector. ESTA represents over 100 suppliers of products

on energy and subject to availability and eligibility criteria)

and services covering the energy efficient monitoring, control,

Possible funding for energy efficiency improvements

operation and management of buildings, building services and

(subject to availability and eligibility criteria)

process services. For further information contact:

0800 02 22 00

††

Free information and advice, whether basic or technical Professional, independent and objective advice about energy efficient and environmentally conscious

For more advice on energy efficiency measures for your business and home visit npower.com

•

•

management measures. For further information contact:

energy efficiency advice for business customers

39

Appendix 1 Action Plan Item 1 2 3 4 5 6 7 8 9 10

Enquiries and complaints You should contact npower business in the first instance if you have a problem. You can find our contact numbers on your energy bills together with details about our complaints procedure.

In the unlikely event that we haven’t been able to resolve your complaint, you can contact energywatch for advice. energywatch is an industry watchdog, set up by Parliament to offer free impartial help and advice about complaints.

Consumer Helpline: 08459 06 07 08 email: enquiries@energywatch.org.uk Fax: 020 7799 8341

www.energywatch.org.uk Textphone for deaf or hearing impaired consumers:

18001 08459 06 07 08

What will be done Ensure all computer monitors are turned off at night Fit door closer to external door Change T12 fluorescent tubes to T8 Undertake compressed air leak test Check thermostat settings on space heating

Who will do it All Fred Bill Harry Bill

When will it be done Every night By 20 March By 25 March By 2 April By 25 March

Appendix 2, sample energy policy XYZ Co Ltd Energy Policy XYZ Co Ltd is determined to conserve all forms of energy to reduce operating costs and to minimise damage to the environment. With fuel prices set to rise by significant amounts over the next 5 years, it has become imperative that we all seek to use less energy. As well as moving towards more efficient use of energy, XYZ Co Ltd will strive to source its energy needs from renewable sources, which will further protect the environment.

It is hoped that over the next 10 years XYZ Co Ltd will have saved a minimum of 10% of its energy use by the adoption of best practice, modern engineering solutions and by the encouragement and commitment of its employees to use less energy. These savings can be channelled into further energy saving initiatives and front line services in support of our main business activities.

We’ll renew this energy policy at regular intervals and update it to take into account changing circumstances and to ensure it provides opportunities for continuous improvement.

The responsibility for overseeing the energy policy and for subsequent reviews has been delegated to Mr Somebody, who will be supported by Mrs Someone. Please give them your whole hearted support.

President’s, Chairman’s or Chief Executive’s signature

Date

Energy Policy Statement This document sets out the goals, objectives and targets for the sustained reduction in energy use throughout the XYZ Co Ltd organisation. This energy policy forms the basis of a 10 year energy saving plan, which will lead to environmental benefits and lower operating costs. The energy policy will run between August 2008 and July 2018 and will be reviewed every 6 months to ensure the goals, objectives and targets are on track and to incorporate any necessary changes.

It is the intention of XYZ Co Ltd to: • • • • • • • • • •

Publish our corporate energy policy Purchase environmentally friendly energy, where we are not disadvantaged by so doing Adopt a whole life costing approach to purchases, where particular attention is paid to energy efficiency Reduce energy consumption, and thus reduce carbon emissions Improve overall energy efficiency Engineer solutions for saving energy rather than rely solely on manual intervention Encourage and motivate employees to save energy Publicise these objectives Ensure all items identified in our action plan have been implemented Introduce energy conservation into the induction process for all new employees

Targets XYZ Co Ltd has agreed to a sustained reduction in energy consumption, year on year, by the adoption of the 10 year energy saving plan. The individual targets for reductions in gas and electricity are detailed below. The base year for statistical purposes will be 2008 and all targets will be set and measured against this.

Gas For gas, the 10 year plan will be for a sustained reduction in use of around 1% per annum, leading to a reduction overall of 10% by 2018. The preferred measure will be kWh/m2 adjusted by degree day data to take account of changing weather conditions.

Electricity For electricity the 10 year plan will be for a sustained reduction in use of around 1% per annum, leading to a reduction overall of 10% by 2018. The preferred measure will be kWh/m2.

Signature (Mr Somebody)

Date

Signature (Mrs Someone)

Date

Fact

your business could profit from intelligent use of energy!

For further information go to npowerbusiness-energyefficiency.com

Printed on recycled material.

†

Calls may be monitored and/or recorded for security, quality or training purposes. Calls from BT landlines to 0845 numbers will be charged up to 4p per minute.

A call set up charge of 5p applies. The price of calls may vary with other operators. Please check with your operator for exact charges. Correct as of May 2008. †† Calls may be monitored and/or recorded for security, quality or training purposes. npower business is a registered trademark and the trading name of Npower Direct Limited (registered in England and Wales No. 3782443) and Npower Commercial Gas Limited (registered in England and Wales No. 3768856). Registered Office: Windmill Hill Business Park, Whitehill Way, Swindon SN5 6PB. npm2600/06.10