Go green and save money

The Sunday Times
February 1, 2009

Simple changes yield better results than splashing out on the latest technology
Andrew Stone

Going green and becoming more profitable have gone hand in hand for Lucho Zuidema and his wife, Christine, who have spent the past three years transforming their Brighton guesthouse into an energy-efficient eco B&B.
The Zuidemas have put a turf roof on a modern extension of their Regency-era building for better insulation and installed an advanced boiler and central-heating system so they can control the temperature on each floor and in each room.
They didn’t stop there. The guesthouse is run in ways that minimise waste and maximise recycling. The Zuidemas even compost their waste food to spread on an allotment where they grow produce for guests.
The couple have managed to cut their annual energy bill to only £7,000, which represents a tiny part of their £180,000 outgoings.
“Most of the big improvements, such as the grass roof, which cost us £1,000, have already paid off in energy savings,” said Lucho Zuidema. “It also sets us apart from other Brighton guesthouses. After we made the changes our bookings went up about 80%.”
Many businesses may think that cutting their carbon footprint in a recession is a luxury they can’t afford, but it can save money, said Hugh Jones of the Carbon Trust, which this week launches a campaign to help small firms find quick ways of cutting energy use.
“Cutting energy use does save a lot of money,” said Jones. “We have found that many firms can save up to 20% on their energy bill by using no-cost or low-cost measures.”
Measuring energy use is the first place to start, he said. “If you can measure, you can manage. Even looking at your old energy bills can give you most of the information you need, although many firms are turning to smart meters that give valuable energy-use information to analyse.”
The Carbon Trust offers free energy audits to small firms as well as online tools to help them measure their carbon footprint. These services may also help to identify energy-efficient equipment and secure interest-free loans of up to £200,000 from the Carbon Trust to help pay for it.
Once you have identified areas for improvement, don’t try to do everything at once, said Jones. “If you have more than one site, for example, focus on the one that is most likely to be wasting energy, the one with the most energy-intensive building.”
Changing the way employees think about energy use is another easy option. “Reminding people to turn lights off is boring but a lot of companies can make significant savings by encouraging changes in behaviour,” he said.
Such changes will also help your business maintain its new levels of energy efficiency, said Jones. “It’s something you need to constantly manage and improve. If you have just installed a new energy-saving LED lighting system, for example, you still need to ensure it is used responsibly.”
In fact, investment in technology such as new lighting or renewable-energy generation on its own seldom works, said Gary Parke, chief executive of Evolve Energy, a consultancy that helps businesses reduce their energy use.
Although much talked about, renewable-energy generation in particular often fails to live up to the hype, said Parke. “We see so many technologies being misapplied, such as costly solar projects that end up being switched off because they don’t work.
“There’s a lot of talk about renewable energy but energy reduction is far more cost-effective. There are some interesting technologies coming through, such as biomass boilers or ground-source heat pumps,” said Parke. “But they won’t offer you the silver bullet – they have to be part of an overall energy-management programme.
“It’s amazing how many people don’t know what their overall energy bill is, yet it is often the second-largest business cost after staff.
“Get out those old utility bills to see how much they have gone up both in terms of cost and energy usage. Have a walk round your premises. Look for the old, dusty lagging or the draughty windows – that’s where you should start.”
Patching up a building may seem boring compared with installing a wind turbine on top of it, but for those prepared to make the effort the payoffs of a considered energy-reduction plan can be numerous, said Zuidema.
“It does cost us in terms of things like effort and labour but it’s worth it. The more efficient you are as a user of energy, the more efficient your business will be. You might spend £10,000, but for us that kind of investment came back very quickly.
“We have also found that it’s a virtuous circle. By being more energy efficient we attract new customers, which improves our occupancy rates, which improves our energy use per person.
“It makes business sense but without being too preachy about it, I think there’s a moral responsibility to do it as well. Climate change is happening and we should all be a part of doing something about it.”