Smaller firms ‘critical’ to achieving clean power targets

Smaller businesses have a “critical role” in delivering the Government's clean energy targets, according to a report.

Research by Green Alliance, commissioned by Co-op, found that electricity use by SMEs was equivalent to 85% of all renewable electricity generated in 2024.

However, the report found that SMEs often lack the capital required to invest in onsite renewables and energy efficiency measures and face high barriers to entry to secure Power Purchasing Agreements (PPAs).

Recommendations include a credit guarantee scheme for SMEs to increase the accessibility of PPAs, making permanent the VAT holiday on energy saving materials and providing every small business with a smart meter to improve energy efficiency.

Roz Bulleid, Research and Policy Director at Green Alliance, said: "How we power the UK’s small businesses could make a significant difference to how easy it is to have a clean power system by 2030.”