Is Your Business Electricity Climate Change Levy Exempt?
Any business owner out there will no doubt now be aware of the Climate Change Levy (CCL); the tax that is applied to energy that has is used by a non-domestic UK user. The introduction of this tax was part of a movement to reduce carbon emissions and to also increase the efficient use of energy.
The incentive is of course that the more energy efficient your business is,
the less you will be spending on the CCL. And these are of course the outcomes that we all want to achieve.
How can my business become more energy efficient?
Of course there are many ways in which you can reduce energy usage and costs within your business, from the 'switch it off' policy to conscientious use of the heating / air conditioning (e.g. heating on, door and window open!). However you can also look to use greener energy from source - renewable energy.
You will find that some business electricity providers have their own packages based around renewable energy for those businesses that are serious and committed to reducing their businesses environmental impact. The extra benefit of this type of supply is that your business may no longer have to pay this additional levy if the renewable energy is exempt from the CCL.
One such form of energy supply comes from biomass. Biomass is a renewable energy source that is generated from organic plant based biological material. It currently stands as the fourth largest energy source and, for years, has provided more renewable electricity in the UK that any other renewable source.
It is currently renewable and can also be a sustainable low carbon fuel. Sourced from forestry/agricultural residues and purposefully grown energy crops, biomass provides significant savings compared to lower carbon intensive gas-fire power plants. At the point of combustion it is also carbon neutral (as biomass takes carbon out of the atmosphere while growing and returns it when burnt).
Another reason biomass is so popular for providing business electricity is due to its flexibility; whereas wind and solar generation rely on external factors, biomass can respond quickly to changes in energy demand.
While there are many positives for biomass (including reduction in use of landfill, socio-economic benefits etc.) it is seen as being costly for a renewable source in regards to its procurement. Biomass fuels are more expensive than fossil fuels, however what is often not noted is that they are still cost effective when compared to other renewables and they can also reduce the overall cost to the consumer that is incurred by meeting government targets for renewable and CO2 emissions reduction.
So investigate whether your can help you become more energy efficient and in turn become Climate Change Levy exempt.
