With utility companies switching to renewable energy resources and setting up new energy-saving deals, there might be some jargon that can become confusing, especially if you haven’t made the energy transition.
Keeping track of new energy resources, dual deals, and new energy can be difficult if you aren’t aware of what they actually mean.
Here is a guide to erroneous transfers to help you understand what it entails and what it means for your business.
Let’s break down the 6 terms within the energy industry that might sound foreign to you.
6 Terms Business Owners Should Understand
There are many terms within the energy industry that are straightforward and easy to understand.
However, there are other things that might make you scratch your head just a little bit.
Here are some of the newer energy terms that you might be confused about when hearing them for the first time.
1. Hardship Plan
A hardship plan refers to the plan used to help provide some relief for businesses that are struggling to meet their energy payments.
2. Feed-in Tariff
The feed-in tariff refers to the rate paid for the electricity that has been pumped back into the power grid from a renewable energy source.
If your business uses solar systems as an energy source, these can sometimes produce more electricity than needed, which can be sent back to the power grid, giving you credit on your energy bill.
3. Time of use plans
This is also known as a flexible pricing plan, meaning that business owners are charged different rates for electricity used during peak, off-peak and shoulder peaks.
It also means that electricity will cost more during high peaks than during off peaks. This will be a cheaper option for businesses that use electricity during off-peak.
4. Default market offer
This is a price cap that the England Energy Regulator has set that energy suppliers must adhere to.
Cogeneration refers to a single fuel source used to generate both thermal energy and electricity.
It is also known as combined power and heat as it uses waste heat energy produced by the generator.
6. Photovoltaic (PV) Systems
This solar system generates renewable energy using semiconductors to produce electrical current when exposed to sunlight.
Why Is Switching to Renewable Energy Important?
For business owners switching to renewable energy means saving on their energy bills and conserving electricity.
Switching to renewable energy has many benefits for the environment. Continued use of fossil fuels to provide energy will lead to the depletion of resources.
Some of the perks of using renewable energy include the reduction of land and water use, no more air and land pollution and conserving wildlife.
Here are some extra benefits that will be good for the environment and the people.
Renewable energy is cheaper than buying traditional energy using fossil fuels: It is becoming more expensive to convert fossil fuels into energy, and with the limited resources left, they might become obsolete if they keep being used.
Using solar, wind and hydro energy is much cheaper as utility companies harness natural energy sources and convert them into an energy and heat supply.
Increase people’s health as there are no air and land pollutants: Fossil fuel energy releases harmful gasses that add to the pollutants in the air and increases global warming by increasing the carbon footprint of each business that still uses traditional energy sources.
It also decreases land pollution, which harms sea life and other land creatures.
Great for the climate, as renewable energy releases low greenhouse emissions. Using renewable energy reduces greenhouse emissions, leading to cleaner air.
All businesses and homeowners are switching to renewable energy, which will save the last fossil fuel resources that are left: Since fossil fuels have been used for a long time, they have reached their limit. Energy suppliers are finding it difficult to source raw materials needed to generate energy and have turned to newer methods and resources, resulting in renewable energy.
Using renewable energy is sustainable and can be used for long: Renewable energy is a much more sustainable way of providing energy.
By knowing the jargon of the energy industry, you can save your business money and get the necessary energy supply that you need.
To familiarise yourself with other terms in the energy jargon, it’s best to keep track of the changes within the energy industry. Be sure to check in with your utility provider if there are any terms that you do not understand and would like clarity on.
For more information on energy terms that you should understand as a business owner, visit https://n4gm.com/.