Key Considerations for On-Site Energy Generation

Exploring on-site energy generation options can be a complex process. There are many factors to consider to ensure your business takes the necessary steps to make an informed decision. To help make sense of it all, we’ve broken down the key considerations and created an easy to use checklist to help along the way.

Scoping and Objectives for On-Site Energy Generation

Before diving into any renewable energy project, it’s important to scope out the project and decide on your objectives. You’ll need to consider what types of on-site renewable energy options are available (like solar, CHP, or biomass) and which would be most suitable for your business.

You should also think about your objectives for the renewable energy project. Do you want to contribute to the electricity used on site, cover all electricity needs to go “off grid,” or export electricity to the grid? Answering these questions will help determine the size and scale of the project. It may help to talk through your scope and objectives with an energy manager who can help you work out what it is you want to achieve.

Feasibility, Financing, and Timescales

To make sure the project is feasible, you’ll need to run a basic feasibility study. This should cover areas like feasibility/payback, building/structure, planning permission, and electrical capacity. 

Next, you’ll need to figure out how the renewable energy project will be financed. You can consider CAPEX funding, financed funding, or a power purchase agreement (PPA) funded option. If you want to learn more about different financing options, we’ve covered this in a previous EnergyIntel: 5 Ways to Finance Energy Efficiency Projects.

It’s also important to establish the timeframe for implementing the renewable energy project. This will help you plan for the installation and ensure that it’s completed within your desired timeframe.

Designing and Tendering an On-Site Energy Generation System

Once you’ve established the scope, objectives, feasibility, financing, and timescale, it’s time to do a full system design. This will allow suppliers to provide accurate quotes and ensure that the project meets your business’s needs.

After the system design is complete, you’ll need to obtain quotes from several suppliers. This will help you compare prices and find the best supplier for the project.

When you’ve received the quotes, you’ll then need to analyse them and make comparisons, normalising the data as much as possible. This will help you make an informed decision about which supplier to choose.

Sometimes it’s better to bring in experts to help make sense of it all. Our energy management team produces comprehensive proposals that cover the design, tendering, and analysis, along with the different financing options available.