Insights
We look at different options to help charities cut energy costs
Energy bills are rising sharply because energy supply doesn’t meet demand. It’s affecting the people that many charities support and the bottom line for charities themselves. There is a danger that the cost-of-living crisis could become a cost of existence crisis for some charities at a time when they are desperately needed.
Several factors are affecting fossil fuel energy supply including, the war in Ukraine, competition for the ever-depleting supply of fossil fuels amid planned coal power site closures, and extreme weather conditions.
Difficulties with energy supply has bumped wholesale price costs and sparked the decision from UK energy regulator Ofgem to increase the energy price cap by 80% leading to spiraling energy bills.
Charities with offices and other physical settings like hospices or shops are faced with the immediate challenge of paying energy bills and the longer-term reality that this energy crisis is just one symptom of the broader climate crisis.
However, in the energy crisis there is also some opportunity. Charities acting to accelerate their plans for green transition could help shore up the future sustainability of their operations.
Every charity is different. Some own a number of properties, some lease and some are entirely remote. However, every charity can make some energy savings to save money and move towards environmental sustainability.
Begin by working out how much energy you’re using. Some commercial energy suppliers offer audits for free to help charities and commercial businesses understand their energy consumption. Use the results as the basis for making changes.
Installing a smart meter will give you live data to help assess whether your energy saving measures are having an impact. The outputs will help with reporting to trustees, supporters and other stakeholders.
A smart thermostat will help you to have better oversight and control over how you use heat and air conditioning in your premises.
The price cap increase has changed the energy deals available, but it is possible to make savings by switching suppliers – shopping around is still worthwhile.
Take the opportunity to switch up office devices and equipment with poor energy efficiency ratings – Ratings go from A+++ at the top to G at the bottom. You could upgrade your printers and kitchen appliances, for example.
Investing in a water machine to heat and cool water will save energy in comparison with using a kettle and fridge for the same purpose.
Switching your existing lighting to LED lights will save significant amounts of energy. You can also make marginal energy gains by servicing other appliances such as fridges, for example.
If your charity owns one or a number of buildings, there are a few structural options for energy efficiency.
If you have a number of buildings, investing in energy management software could help you get a better picture of energy use and options for better management across your property portfolio.
You could also explore the cost benefit of better insulation such as cavity wall insulation or weather-stripping door and window frames.
Your properties will have better long term sustainability if they are able to generate some green energy themselves. You could consider installing solar panels, for example.
A behaviour change campaign could be one way to get the whole team involved. Inspiring lots of small energy efficiency behaviour changes could add up to a decent dent in your energy bills.
There may be members of your team who are already working towards a meaningful organsiational approach to the climate crisis and might be willing to take a lead on the campaign.
Energy-saving behaviours might include:
The charity sector is lurching from the pandemic to the cost of living crisis and possible recession with dizzying speed. However, we continue to see examples of organisations adapting quickly to grow their resilience and sustainability.
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