Here at Greenlite, we’re pleased to see that the latest 'UK Energy Efficiency Trends' report brings up positives for energy efficiency. It also pinpoints why changes to ESOS are set to catalyse UK energy managers. 

Surveys are always interesting, but in the second quarter of 2015, an unusual amount of activity seems set to catalyse energy efficiency in the UK.

The Q2 2015 headline statistics

a) More consumers are commissioning energy efficiency projects

Around 70% of consumers typically report commissioning energy efficiency projects each quarter. But this quarter saw a jump in commissioning following an extended downward trend. At almost 80%, this represents one of the highest rates since the survey began, and points to the rising star of overall efficiency.

We think: more projects, a more vibrant sector and competitive prices to embed LED lighting should be the results.

b) Lighting rises to the top of the pile

High-efficiency lighting continues to outperform other individual technologies. It is included in 63% of energy efficiency projects.

We think: this is almost certainly because lighting upgrades are an easy, quick fix and offer fast paybacks, as well as better quality lighting itself in most cases.

c) Finance and delivering quick payback are the crucial energy efficiency challenges

Fast payback seems to be an important criterion for companies. In Q2, around 7 out of 10 respondents reported a financial payback requirement of less than 5 years for their projects. This figure appears to represent a payback ceiling for the majority of respondents.

We think: payback is the top concern when getting the green light from the board on efficiency investments. That's why Greenlite's Lighting Finance Plan minimises capital outlay and enables immediate savings.

In addition: The statistics say 7 out of 10 energy efficiency projects are financed using in-house sources of capital. This trend looks set to continue in Q3 2015. It's worth remembering; Greenlite financing offers another flexible path to energy efficiency if your internal cash situation is tight.

The wider context of energy efficiency news

It is intriguing that, contrary to the longer term trend, the number of respondents who indicated that future projects are planned dipped significantly this quarter for the first time.

Certainly, the sector is going through a period of change, potentially reflected in the fall. New policy support for energy efficiency is coming, most likely through the reimagined ESOS regime.

Within the Government's energy efficiency taxation review, the new role for ESOS, as the core reporting and taxation tool, is outlined. In future, assuming Government comes through on the plans, companies will report efficiency performance, and be taxed on this through ESOS.

Thus, by next year, another vital driver to encourage efficiency should be with us. This will create solid encouragement for yet greater investment in energy savings, and should see a whole raft of new lighting investment getting off the ground.

Our analysis suggests that the short term dip in planned projects is really just industry drawing breath, before 2016 truly becomes a year of promise.