It’s a Fact: Some Startling Energy Statistics for Businesses
This week, we’re exploring some energy statistics that may shock business owners. We’ll be talking about waste, efficiency, sustainability and the energy crisis, as well as how GridDuck aims to help businesses survive this crisis.
The world is at a tipping point. We all know we need to do more to save energy and reduce our carbon emissions, but many of us aren’t sure where to start. With energy bills at record highs, the incentive to act is greater than ever. This is especially true of small businesses, which aren’t getting any breaks to cover their escalating operating costs.
The fact is, we can all do something and it often doesn’t take as much effort as you think. Speaking of facts, GridDuck has compiled a few energy stats that tell the story best.
The bottom line: even if we can ultimately afford our energy bills as individuals or businesses, the planet can’t afford us much more time to start saving energy. We need to make cutbacks today.
The (curated) lowdown on energy, sustainability and carbon:
Almost 33% of small businesses highlight the cost of energy as a barrier to growth and success, and this was before bills started tripling.
Source: Department of Energy and Climate Change
The average SME could reduce its energy bill by 18-25% by installing energy-efficiency measures with an average payback of less than one and a half years. And it is estimated that 40% of these savings would require zero capital cost.
Small businesses have experienced a 424% rise in gas costs and 349% increase in electricity between February 2021 and August 2022.
Source: FSB
Some hotels, for example, have warned that it would be cheaper to close over the winter than heat rooms for guests. Fish and chip shops are also warning of unsustainable hikes, leading to closures.
Space heating can account for as much as 40% of a business’s energy costs.
Source: Carbon Trust
There are many opportunities for making savings if you get your heating right. Set the temperature to the lowest comfortable setting. For every 1°C rise in the thermostat, you will be consuming roughly 10% more energy. Some tips include using automation to control your thermostat, maintaining boilers and pipework, heating only spaces in use, and investing in insulation.
SMEs account for 90% of global businesses and more than half of employment.
Source: Carbon Trust
If the UK is to meet its Net Zero targets by 2050, it’s vital that businesses reduce their carbon emissions.
LED lights use up to 75% less energy than incandescent light bulbs.
Source: Santanna Energy Services
They also last 25 times longer and run much cooler than incandescent lights. They will cost more up front, but you will recoup this extra cost in energy savings over a short period of time.
70% to 94% of the energy consumed by air compressors is recoverable.
Source: CompAir
Recovering heat from compressed air generation reduces the need for purchasing energy, and it is this reduction that results in lower CO2 emissions and operating costs. What’s more, make sure any equipment is operating efficiently – you can lose up to 20-30% of compressed air through leaks.
98% of an electric vehicle’s battery materials can be recycled or reused.
Source: Energy Saving Trust
You may have heard that electric vehicle batteries either can’t be recycled or are difficult to recycle and ultimately end up in landfill. This isn’t true. Electric vehicle batteries can be recycled at processing centres, and some companies can remove EV batteries from the vehicle shell and put them to use in your home, or sell them on for commercial use.
Peak-time electrical demand has gone down by about 16% over the last two decades.
Source: Energy Saving Trust
Our phones, computers and even washing machines have become increasingly energy efficient, reducing demand on the grid. Investing in energy-efficient appliances and machines can help you make significant savings in the long run and is better for the planet. While energy costs remain high, you can save money by doing the most energy-intensive tasks outside of peak time too.
The built environment contributes about 40% of the UK’s total carbon footprint.
Source: UK Green Building Council
Almost half of this comes from energy used in buildings and for infrastructure. The figure has remained stable for years, yet to meet the targets set out in the Paris Agreement, the energy intensity per square metre of buildings needs to reduce 30% by 2030. Newly constructed buildings are more energy efficient, but a priority remains decarbonising existing stock.
Manufacturing accounts for 77% of energy consumption in the industrial sector.
Source: EIA
This is far ahead of mining (12%), construction (7%) and agriculture (5%), according to data from 2020. The industrial sector accounts for 36% of end-use energy consumption in the United States.
UK energy production was down 14% compared to 2020 and the lowest level in over 50 years.
Source: BEIS
Extensive maintenance in the North Sea reduced oil and gas output by 17%. Nuclear output was also disrupted by maintenance, dropping to the lowest level since 1982. Increasing energy demand with lower production meant that net import dependency increased to 37.9%, the highest share since 2015. Coupled with the war in Ukraine and global supply chain issues, we are now facing the worst energy crisis in decades.
The cost of electricity and gas has jumped by about 80% from the previous cap.
Source: NimbleFins
Average consumers are now paying approximately 52p per kWh for electricity and 15p per kWh for gas. There’s expected to be more rises in 2023.
39% of the UK’s electricity generation in 2022 came from renewables.
Source: BEIS
The government has said that it wants roughly 70% of electricity to come from clean sources by 2030, and 100% by 2035. The targets are ambitious and without collective action from business, government and global alliances, unlikely to be met.
GridDuck is a tech company that uses IoT technology to deliver its service:
IoT technology will save 8 times the energy it consumes by 2030.
Source: IoT News
The net savings amount to 230 billion cubic meters of water and one gigaton of CO2 emissions.
The global IoT market is estimated to be valued at between $5.5 trillion to $12.6tr by 2030.
Source: McKinsey
The economic value is large and it continues to trend upwards, thanks to a growing demand for IoT products and services.
65% of IoT’s value comes from B2B applications.
Source: McKinsey
Factories and manufacturing are likely to account for the biggest percentage of the value, at around 26%. If you’re in manufacturing, your competitors will increasingly be using cloud-based technology to remotely control appliances and become operationally efficient.
GridDuck works with B2B clients in several sectors, from manufacturing to hospitality:
We helped a cocktail bar make energy savings of 35% and achieve 100% ROI within seven months.
Source: GridDuck
The bar was located near Oxford Street in central London and was part of a 10-strong chain. We were able to monitor how they used refrigerators and ice machines, and reduce how often they needed to be on, resulting in significant savings.
A fruit farm made energy savings of 45% when the figures were compared to the year before.
Source: GridDuck
Priors Grove harvests a variety of seasonal fruit, including plums, pears and cherries. In the busiest seasons, the farm has to use full power to keep cold stores at the optimal temperature for produce. GridDuck helped the farm optimise its energy use and reduce waste.
GridDuck has grown its annual recurring revenues by 18 times since May 2021.
Source: GridDuck
The sales of our devices have also multiplied by a similar figure. We’re a growing company with innovative solutions to help businesses optimise their energy, using simple monitoring devices and an intuitive app and dashboard.
Find out more about what GridDuck can do for your business’s energy costs and carbon emissions. Contact us for a chat or send us an email.