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Business Barriers to Energy Efficiency

UK businesses struggle to adopt energy efficiency measures

Research commissioned by DECC found several barriers are preventing businesses from implementing energy efficiency measures.

The main barriers cited by businesses were:

  • Capital constraints
  • The need for and lack of short payback periods
  • Lack of expertise
  • Complex internal decision making processes
  • Fear of disruption of daily business.
  • Low priority given to energy efficiency by their companies

According to the Carbon Trust – who conducted the research – these barriers are “greatest for smaller organisations”.

Commenting on the findings James Rawlins, Associate Director at the Carbon Trust said:

“Our research found that while most medium-sized and large businesses would respond positively to an incentive scheme designed to encourage energy efficiency, there is no silver bullet policy that will suit all businesses.

Businesses in different circumstances prefer different types of incentive scheme. For example, an important factor in determining business preferences was whether or not they were capital constrained with regard to energy efficiency investments – for businesses that are capital constrained, incentive options that are structured to take away the need for upfront investment tend to be most popular.”

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