Your Questions Answered
In this guide, we’ll explain everything you need to know about energy for manufacturer's plus the UK Government programmes, exemptions and schemes that are available to your business.
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Introduction
Energy Efficiency Grants
Energy Intensive Industries (EEI) Exemption
Mineralogical Metallurgical Exclusion (MinMet)
Climate Change Agreements (CCA)
Energy Efficiency Grants for Small and Medium-Sized Enterprises (SMEs)
Carbon Emissions Reduction Allowance (CERA)
The Energy Transformation Fund (IETF)
Energy Compliance for Manufacturers in the UK
Streamlined Energy and Carbon Reporting (SECR)
Energy Savings Opportunity Scheme (ESOS)
Certification for Combined Heat and Power Quality Assurance (CHPQA)
Energy Performance Certificate (EPC)
Revenue Opportunities for Manufacturers – Participating in Demand Side Management
What is Demand Side Response
Avoid peak energy charges
Security of Supply
Carbon Footprint Reduction
How to Participate in a Direct Side Response Programme
Take Control of Your Energy Future
Reduce the Risk of Non-compliance with Energy Management Tech
How we Help Manufacturers with UK Energy Efficiency Grants
Introduction
Applying to government energy efficiency and carbon reduction programmes can be overwhelming for any business. With so many options, each with its own rules and application process, it's easy to get lost in the bureaucratic maze. With Tritility as your expert guide, you can rest assured that your business is well-positioned to benefit from these initiatives. We'll identify and deliver funding opportunities, and reduce the risk of punitive regulations, unlocking your business’s energy efficiency potential.
In this guide, we'll take a look at a range of UK government energy efficiency and carbon reduction programmes and schemes, specifically designed to help manufacturing businesses like yours grow sustainably. We'll provide you with clear insights into eligibility criteria, application procedures, and the potential benefits of each programme, equipping you with the tools to make informed decisions.
Energy Efficiency Grants
Designed to support the manufacturing industry in its transition to a low-carbon economy and contribute to the UK's goal of achieving net-zero carbon emissions by 2050, the following grants apply to manufacturers in the UK who demonstrate a commitment to reducing their energy consumption and improving their energy performance.
Energy Intensive Industries (EEI) Exemption
The Energy Intensive Industries (EII) Exemption is a government scheme that provides financial relief to energy-intensive businesses in the UK. Qualifying businesses are excluded from the higher energy costs associated with renewable schemes put in place by the government to achieve its 2050 zero carbon emissions goal. The EII Exemption Scheme allows energy-intensive businesses to claim an exemption of up to 85% of their Contract of Differences (CoD) and Renewables Obligation(RO) costs. The list of sectors that fall under EII is quite extensive and includes engineering, mining, steel, and meat processing.
The Min-Met exemption is a tax scheme that allows eligible UK energy-intensive industries (EIIs) to be exempt from the Climate Change Levy on energy used for mineralogical or metallurgical purposes. This can lead to significant savings on energy bills for manufacturers in the UK. To be eligible for the Min-Met exemption, your energy consumption must be related to one or more of the following fields:
- Non-metals: Glass, ceramics, concrete, brick, tile, clay, cement, stone cutting
- Metals: Metal production, metal casting, forging, pressing, stamping, rolling, metal powders, galvanizing, coating metals
Climate Change Agreements (CCAs) are voluntary agreements that help energy-intensive industries lower their energy bills by up to 90% in exchange for meeting energy efficiency targets. Some industries, like those in the mineralogical and metallurgical sectors, may even be eligible for up to 100% relief.
Carbon Emissions Reduction Allowance (CERA)
The Carbon Emissions Reduction Allowance scheme offers financial assistance to manufacturers that undertake projects aimed at lowering their greenhouse gas emissions. In 2024, the total allocation of carbon allowances for auction will reach
69 million.
The Energy Transformation Fund (IEFT) is designed to help businesses with high energy consumption reduce their energy costs and carbon footprint through investments in energy-efficient and low-carbon technologies. This initiative is open to businesses of all sizes operating in England, Wales, or Northern Ireland, aligning with the government's strategy to achieve net-zero emissions by 2050. Applications for Phase 3 of the IETF will open in early 2024. We encourage eligible businesses to
contact us today to discuss your eligibility and application.
Energy compliance may seem like an additional challenge to manufacturers, but it's an opportunity to improve efficiency and reduce costs in the long run. Working with experts can take the stress off you and ensure you're compliant. If you need support with your manufacturing business energy, read more about
our services or
contact us today for a free consultation.
A mandatory scheme for large companies and manufacturers in the UK, Streamlined Energy and Carbon Reporting (SECR) requires businesses within scope to collect information relating to their energy use and associated carbon emissions, which they are expected to submit as part of their annual reporting to Companies House.
Under the Energy Savings Opportunity Scheme (ESOS), every four years, businesses must carry out energy audits on the energy use of their buildings, processes, and transportation. We are currently in Phase 3 of this program, and businesses must report their findings to the Environment Agency by June 5, 2024. To meet this deadline, start your audit now.
Call us today to connect with an energy assessor.
The CHP Quality Assurance programme (CHPQA) is a practical method for assessing all types and sizes of Combined Heat and Power (CHP) schemes throughout the UK. While participation in the CHPQA programme is voluntary, successful CHPQA certification unlocks a range of benefits, including Renewable Obligation Certificates, Renewable Heat Incentives, Carbon Price Floor (heat) relief, Climate Change Levy, and Capital Allowances.
Find out more.
When the occupiers of a commercial building change (through the sale or rent) or you have carried out significant building work on a building, you need to have a commercial EPC. To get a certificate, you need an expert assessor to carry out an inspection, checking the efficiency of your building and heating system, your insulation in the walls and roof, lighting, and ventilation. From the information they gather, they will then give the building an energy rating based on a CO2 index.
Ask us about our additional services that can help you achieve your energy, carbon, and cost-saving targets.
What is Demand Side Response?
Energy-intensive businesses that agree to reduce their energy use when demand and energy prices are highest or shift their use to off-peak windows can benefit from lower electricity costs and emissions. Demand-side management (DSM) focuses on reducing overall electricity consumption over the long term, while demand response (DSR) focuses on adjusting electricity usage in response to real-time conditions on the grid. DSM involves strategies like energy efficiency upgrades and behavioural changes, while DSR uses financial incentives to encourage businesses to reduce or shift their electricity usage during peak periods. In simple terms, DSM is about using less electricity overall, while DSR is about using electricity more flexibly.
DSR provides valuable insights into your consumption patterns, enabling you to optimise your business energy expenditures.
DSR contributes to a more resilient and stable electricity grid by enabling efficient energy use and reducing reliance on peak capacity.
Actively participating in DSR demonstrates your commitment to environmental responsibility by reducing your carbon footprint and contributing to a cleaner energy future.
For energy-intensive businesses, getting started with a Demand Side Management (DSM) programme, like Demand Side Response (DSR), is simple:
1. Analyse energy consumption and identify areas where energy can be saved.
2. Install metering technology for real-time tracking of energy usage.
3. Respond to utility communications to maintain grid stability and reliability.
DSR is an opportunity for manufacturing businesses to embrace a more intelligent approach to energy management. By analysing your electric machinery and equipment, and reviewing your operations and energy usage, we’ll work with you to assess your savings potential.
Contact us today to find out how your business can benefit from DSR.
Tritility’s Energy Management System is a valuable tool for helping businesses comply with energy regulations by improving data management, streamlining reporting, reducing risk, and increasing transparency. Our Energy Management System (EMS) can help you collect, store, and analyse your energy, gas, and carbon data, which you can use to track progress towards compliance targets. This data can also be used to identify areas where energy consumption can be reduced.
- Automate the reporting process, making it easier to comply with reporting requirements.
- Identify and address potential compliance risks, such as the need for training or audits. This can help to reduce the risk of fines or other penalties.
- Make informed decisions about your energy use.
