As we all know, cutting operating costs is one way to improve the bottom line of our business. One operating cost which appears to make an ever bigger hole in our profits, is energy. This is particularly true within the B&B market. Guests not only expect, but demand, to be nice and warm and to have unlimited amounts of hot water!
So the smart owners of B&B businesses are already looking at renewable energy as a way of taking control of and cutting their energy costs, at the same time as financially benefiting from the Government’s non-domestic Renewable Heat Incentive (RHI).
Under the non-domestic RHI, the Government will pay a quarterly tariff for every kilowatt hour of energy generated by renewable energy which is used to heat and provide hot water for commercial properties.
Renewable energy can help you to control your energy costs by enabling complete independence from the Big Six energy companies and the volatility of their pricing.
How does renewable energy help you reduce your energy costs?
Well here’s an example:
An eight bedroomed B&B using a traditional oil fired boiler to heat and provide hot water to an area of 600 m2, costs in the region of a staggering £8,000 a year in oil.
With an investment of around £55,000 you can switch from a traditional oil fired boiler to a renewable energy 80kW biomass boiler system and you will be able to make a combined saving against your previous oil costs, plus your RHI tariff and taking into account the running costs of the biomass boiler, of around £9,500 a year.
Based on a 20 year investment period at a rate of 17%, payback can be achieved in five years and you will still be receiving the RHI tariff providing a regular income!
Many B&B properties can be retrofitted with a biomass boiler, either as a stand-alone primary heat source or in conjunction with a secondary boiler which serves as back up.
Ground Source Heat Pumps (GSHP)
For a B&B of the same size as the example above but with available land to accommodate the ground collector loops or boreholes, an initial investment of around £60,000 in a GSHP will deliver a combined saving, against oil costs plus the RHI tariff and taking into account running costs, in the region of £11,000 a year. Over a 20 year investment period at a rate of return of 21% payback is possible in five years and you will continue to receive the RHI tariff for twenty years, index linked.
Air Source Heat Pumps (ASHP)
An initial investment of £45,000 in an ASHP will deliver a combined saving against oil costs plus the RHI tariff and taking into account running costs, of around £6,000 a year. Again, based on a 20 year investment period at a rate of return of 19%, payback can be achieved in five years and you will still continue to receive RHI tariff as a regular income.
The B&B Association recommends that you know what benefits you can achieve from the Renewable Heat Incentive.
You may not have heard of the UK Government’s Renewable Heat Incentive, but if we told you that under this scheme you could reduce your hot water and heating costs by up to 50% and benefit from a guaranteed cash income for 20 years, surely you would want to know more? To learn more call Ecovision on 01666 501580.
Ecovision is a national, long standing supplier of renewable energy solutions and its central design and technical support department includes some of the most experienced professionals within the UK renewable energy sector. Recognised as one of the UK’s leading teams of renewable energy designers and installers, Ecovision is independent, accredited, impartial, and passionate about renewable energy.
Ecovision has installed over 5,500 renewable energy systems including heat pump, solar PV, solar thermal, biomass and under floor heating, across the UK within properties, large and small, from Stately Homes such as Castle Howard through to single bedroom city apartments.
To increase your bottom line by taking control of and cutting your energy costs, talk to an accredited specialist and find the right renewable energy system for your B&B.