A Guide to Off-Grid Business Energy

For some businesses, it’s not a matter they have much choice over. For others, it's a decision that puts them in full control of their energy use or reflects an ethical commitment. Although most businesses get their energy from the national grid, off-grid energy remains critical to this country’s energy use. What is it, what are its benefits, and is it suitable for your business?

What is Off-Grid Power?

Simply put, off-grid power is energy not derived from the national grid. Most commonly, its users are remote or rural. Farms, for example, often use off-grid power. But increasingly, as people become more environmentally conscious, going off-grid is also becoming seen as an ethical choice. 

What are the Differences Between Off-Grid and On-Grid Power Systems?

Off-grid energy cannot buy energy from the marketplace but produces its own. This may be renewable energy, such as solar arrays or more traditional generators. These are mature technologies with well-established markets, but the off-grid market also hosts constant innovation and new technologies. 

What are the Benefits of Going Off-Grid for Businesses?

The biggest benefit of going off-grid for businesses is control and security over your energy supply. These are uncertain times, and gas and electricity prices have been subjected to severe shocks over the last few years. Going off-grid using renewable sources doesn’t just protect your business from increasing energy prices; it could even eliminate energy bills. If your company produces more energy than it uses, you can even sell that excess to the national grid, and it’s also worth remembering that the environmental benefits of renewable energy are also huge. 

How to Go Off-Grid in the UK

Going off-grid is all about the planning. After all, the aim is to disconnect from the national grid, at least for energy consumption. 

First of all, you need to understand your own business energy use. Running an energy audit will allow you to do this. You should also pay close attention to the exact location of your business. If you’re close to a source of running water to which you have access, a micro hydro turbine could be a wise investment. Some locations are better suited to some types of solar panels than others. 

Taking your business off-grid legally in the UK will also require careful consideration and adherence to various legal aspects, including land ownership regulations, planning permissions, building regulations, and environmental standards. Of course, there is a thriving industry of consultants who can help with this, and we have a full range of guides across the minefield that is business energy supply. 

Off-Grid Electricity Options

Those looking to move towards renewable energy solutions have a wide range of options for generating electricity.   

Solar Power Systems

Solar panel systems (often called ‘arrays’) harness the sun's energy and convert it into electricity. Combined with battery storage, which captures excess energy produced during daylight hours for use at night, they can provide a complete solution for powering a business. There is an initial cost outlay, but with several incentives to make the switch, the return on investment can be quickly achieved and substantially increased. Take a look at our solar energy guides to learn more. 

Wind Energy Systems

Britain is a windy place, and wind energy is already being used to help power the national grid. Off-grid, micro-turbine systems that rely on wind power have proved more difficult to sell than solar power systems. However, they can still be used as part of an off-grid energy solution and are particularly suitable in geographically exposed locations. 

Biomass Energy

Because many businesses using off-grid energy are involved in agriculture, biomass energy can become a viable option as an off-grid energy solution. Biofuel generators burn organic matter and derivatives to generate heat or electricity. 

Typically, manure from large animal farms can ferment without oxygen in an anaerobic digester to produce methane. The resulting gases and liquid fuels can then be combusted to produce heat or drive a small turbine and generate electricity, albeit with some carbon emissions. In this context, this is all considered green energy because the entire process captures and utilises methane that would otherwise end up in the atmosphere anyway, as manure naturally biodegrades to produce methane.

Hybrid Systems (combination of renewable sources)

Of course, there are no hard and fast rules for what you do, and you may find that hybrid systems, which use a combination of renewable sources, work best for you. Another hybrid system might have you connected to the grid so that you can sell your excess back to it under the Smart Export Guarantee. 

Off-Grid Power Supply for Businesses

Pumped Hydro

Water is pumped uphill during low energy demand periods and stored in a reservoir. When in high demand, the water is released through turbines to generate electricity. 

Advantages: High capacity, long duration, and proven technology. 

Best use case: Common for large-scale energy storage.

Batteries

Batteries store electrical energy chemically and convert it into electricity when needed.

Advantages: Scalable, modular, and suitable for residential and commercial use.

Best use case: Backup power during outages, integration with solar panels.

Thermal Energy Storage

Stores heat or cold for later use. Examples include molten salt or ice-based systems.

Advantages: Efficient and can provide continuous power.

Use case: District heating, industrial processes, and solar thermal systems.

Mechanical Energy Storage

It uses motion or gravity to store energy. Examples include flywheels and compressed air energy storage (CAES).

Advantages: Fast response time and long lifespan.

Use case: Grid stabilisation and load levelling.

Backup Power Options

When you’re responsible for your own energy production, you must have a backup for if you need more than you’re producing at any particular time. There are several different options. 

Generators

Gas-powered or diesel generators which convert fuel into electricity.

Advantages: Reliable, high output.

Best use case: Emergency backup during power outages.

Uninterruptible Power Supply (UPS)

Battery backup system that provides short-term power during outages.

Advantages: Instantaneous switchover, protects sensitive equipment.

Best use case: Critical applications like data centres.

Solar + Battery Storage

Solar panels generate electricity during the day; excess energy is stored in batteries for nighttime use.

Advantages: Renewable, zero-emissions backup.

Best use case: Residential and commercial applications.

Benefits of Off-Grid Business Energy

There are plenty of benefits to decoupling from the grid. 

Cost savings and return on investment (ROI)

Producing your own energy can save you a lot of money on your energy bills. Unless you’ve got a hybrid backup that connects to the grid, you won’t be getting gas or electricity bills if you can produce enough energy. This does all require upfront investment, but funding options and incentives are available, and while this will depend upon the specifics of your circumstances, the ROI period could be as low as five years. 

Environmental benefits

We are already moving away from our dependence on fossil fuels. Renewable energy is a free and infinite supply of energy that can significantly benefit the planet. Advertising your commitment to the environment can even grow your business reputation.

Energy independence and security

As seen in the last couple of years of fluctuating prices, the wholesale energy market can be volatile. Going off-grid removes your business from that particular equation, offering you full independence from the grid and full responsibility for your business energy supply. And this responsibility is good for your energy security. Should anything serious happen to the grid, your business will remain unaffected.  

Going Off Grid for Business Energy: Challenges and Solutions

Of course, going off-grid carries a lot of responsibility. So, what are the most common challenges to leaving the national grid, and how can you mitigate them or even avoid them altogether?

Initial Cost

The upfront expenses of transitioning to an off-grid lifestyle can be significant. Costs include installing solar panels, purchasing low-power appliances, implementing water supply systems, and setting up sewerage solutions.

Solutions: You could gradually transition, going off grid incrementally and spreading your costs over time. Sell old appliances to offset expenses and collaborate with others to share expertise and resources.

Water Supply

Establishing a reliable off-grid water source can be complex and costly. Options include wells, rainwater harvesting, or purchasing water.

Solutions: Stay connected to utility water until your off-grid system is fully ready, buy water if needed. At the same time, you work on a long-term solution, and explore alternative collection methods to maximise rainwater harvesting.

Energy Storage and Reliability

Ensuring a consistent power supply without grid backup is essential.

Solutions: Invest in reliable battery storage for nighttime or cloudy days, combine solar panels with backup generators for reliability, and keep the panels clean while monitoring your setup’s efficacy.

Maintenance and Long-Term Reliability

Off-grid systems require ongoing maintenance to function optimally.

Solutions: Schedule professional checks to identify issues early, keep panels free from dirt and debris, monitor battery health and replace as needed, and shield equipment from extreme weather conditions.

For some businesses, it’s a necessity. In contrast, for others, it’s a choice, but we can say for certain that as energy markets continue to be volatile, more and more businesses will start to see the benefits of moving off-grid. And if that’s a change you’re looking to make, SwitchPal can offer you help to make the transition as smooth as possible. With significant benefits for the environment and your business’s bottom line, can you afford not to?