The latest edition of EEVS/Bloomberg’s Energy Efficiency Trends survey contains some interesting news for the UK efficiency sector.
According to the survey, supply-side industry confidence for energy efficiency hit an all-time low in Q1 2016.
The decline, says the report, was largely driven by a continued downward trend in national orders and a significant drop in confidence with regard to the government’s management of energy efficiency policy.
11% of respondents cited policy uncertainty, and another 11% cited regulation as dominating concerns among efficiency suppliers. 14% called financing an issue and18% called competition a concern, while the majority, 36%, felt that customer demand was the top worry.
But, contrastingly, the median payback expectation per project is now just three years, easing the financing of efficiency. And whilst Brexit could hit energy prices, uncertainty arising from the UK’s potential exit from the EU has not materially impacted consumers.
91% report no change to their appetite for energy-saving schemes; the underlying advantages of energy efficiency remain. Indeed, the advantages of investing early in energy efficient technologies have never been stronger.
The underlying truth; why efficiency investment now is the smart option
The EEVS data shows that 57% of respondents are expecting UK energy prices to rise in the event of a UK exit from the EU.
If Brexit happens, those businesses who have shown the courage to invest in energy efficient solutions will be set to reap major cost savings. The tech will insulate them against the rising costs of energy.
And if no Brexit occurs, general worries over the preparedness of the UK for both rising energy costs and the futureproofing of UK energy supplies remain.
There is a simple answer to these worries; energy efficiency. ROI and payback times are falling fast, the quality and the longevity of efficient technologies are growing. In every scenario the report references, major advantages to investing now are apparent.
On lighting, EEVS says high efficiency lighting is still growing in popularity, and this quarter was included within almost eight out of 10 energy saving projects.
Moreover, the long-term trend for lower capital-cost projects has continued this quarter, with a median spend of around £47k per project. This is now at its lowest level since the survey began, which hints the sector is finding a balance between upfront costs and speedy ROI.
“The time is now for energy efficiency installation,” comments Gareth Barber, Managing Director, BG Energy Solutions.
“Brexit could affect UK energy costs, but regardless of the outcomes, the EEVS survey shows that with falling payback times and ROI hastening, starting the process to tech installation now will pay dividends no matter whether we stay in or out.”
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