As the global economic instability sparked by the conflict in the Middle East is unlikely to be resolved any time soon, many individuals and businesses around the world are feeling the pressure of increasing costs.
Disruption to fossil fuel provisions is adding more to already steep energy bills and driving the costs of petrol and diesel to staggering new highs.
Understandably, a renewed interest in renewable energy has been generated by this situation and it may be time for your business to make a green transition.
If the costs of making the switch are intimidating, it is worth understanding how they can be offset and why waiting around may be more expensive.
How can the costs of a green transition be managed by a business?
With budgets stretched thin and costs rising, it can be difficult to commit the resources needed to establish the infrastructure that can make a green transition successful.
This is often made more complicated by the benefits of renewable energy taking years to manifest in savings.
However, the current energy crisis may mean that businesses are better off taking the initial financial hit in order to escape some part of the mounting costs.
In order to do this successfully, knowing the availability of reliefs and grants is vital.
Grants can vary depending on local areas and the type of business, so seeking support to access the ones that are best for your business can be beneficial.
An example of this is the Workplace Charging Scheme, which covers up to 75 per cent of the cost of purchasing and installing electric vehicle charge points, up to £500 per socket, with a maximum of 40 per site and can be claimed until 31 March 2027.
For businesses looking to embrace a fleet of electric vehicles, the scheme is particularly effective, but even those looking to assist employees with a green transition may benefit.
Alongside this, businesses can use the Annual Investment Allowance (AIA) to claim 100 per cent tax relief on qualifying plant and machinery investments up to a limit of £1 million a year.
Solar panels, heat pumps and battery storage systems can all qualify for the relief and this may help you to manage the upfront cost.
Is your business ready to make a green transition?
The time has come to give a green transition some serious consideration as the ongoing cost of living crisis reveals the untenable nature of fossil fuel reliance.
Seeking professional financial support is vital in ensuring that costs are managed effectively and that your long-term financial forecast is understood.
This should reveal precisely how effective your planned green transition is and we are well-positioned to assist.
Our team can help you to budget for any increased upfront costs so that you can be confident in implementing your strategy.
Alongside this, we have a specialist team of carbon accountants who are adept at helping you understand your carbon footprint.
This provides you with accurate data that can inform your future approach to sustainability rather than just solely focusing on short-term goals.
