A monumental shift is underway for consumers and businesses as the world transitions from its heavy reliance on coal and fossil fuels to a more sustainable future powered by renewable energy sources.

This transition marks a significant departure from the traditional energy paradigm, forcing industry leaders to re-evaluate their strategies and adapt to the new realities, Roy Morgan’s latest energy insights found.

As companies navigate these new energy challenges, they will encounter both opportunities and obstacles that can shape their future. 

The recognition of the urgent need to reduce carbon emissions has prompted industry leaders to embrace renewable technologies. Solar and wind power have emerged as frontrunners in the race towards clean energy.

Forward-thinking companies are actively incorporating these technologies into their energy portfolios, enabling a diversified mix of power sources. This not only helps reduce their carbon footprint but also offers long-term cost-effectiveness and sustainability.

“Business leaders are dealing with multiple challenges and stresses,” Roy Morgan industry director Shelley Dennis said.

“The society and environment in which leaders operate is dynamic and increasingly regulated. The global pandemic accelerated trends, created new norms, and demanded more resilience, flexibility, and empathy from leaders than before.

“Leaders are also dealing with consumers who are more tech-savvy, environmentally aware, and emotionally sensitive whilst there is a changed government and an increased focus on regulatory and cost-of-living pressures in this environment.”

One significant aspect of the transition is the potential impact on energy costs and efficiency, according to Roy Morgan. While the initial investment in renewable technologies may be higher, businesses stand to benefit from long-term cost savings. 

Renewable energy costs have been steadily declining, and reduced reliance on fluctuating fossil fuel prices can provide stability to businesses’ energy budgets. Embracing energy-saving practices and technologies further improves cost savings and operational efficiency.

To address these new energy challenges, businesses can adopt several strategies. Firstly, conducting thorough energy audits and assessments can help identify opportunities for energy efficiency improvements. 

Investing in energy-efficient technologies, implementing smart energy management systems, and engaging employees in sustainable practices can all contribute to reducing energy consumption and costs.

Furthermore, businesses can seek partnerships and collaborations with renewable energy developers and suppliers. Such alliances can provide access to renewable energy sources, facilitate knowledge sharing, and promote technological advancements. Additionally, engaging with policymakers and advocating for supportive renewable energy policies can create a more favourable business environment and incentivise further investments in renewables.

Energy incentive

Business NSW senior infrastructure policy manager Simon Moore said energy costs remain a significant cause for concern among small businesses, showing up as a top-2 issue in recent BNSW member surveys. 

"Businesses are becoming increasingly frustrated at the mismatch between political narratives that promise ever-cheaper bills, with the current realities in the market," he said.

"A much more honest discussion needs to be had about both the costs and the benefits of the energy transition, and more ways found to support businesses through the costliest periods.

"In the meantime, businesses should take advantage of incentives such as the Small Business Energy Incentive tax relief, and make use of the expert advice MyBusiness offers."

The federal government's Small Business Energy Incentive will help up to 3.8 million small‑ and medium‑sized businesses save energy and cut their power bills.

SMEs with a turnover of up to $50 million will be able to claim an additional 20% tax deduction on investments of up to $100,000 in electrification and energy efficiency.

It will help small businesses make investments like electrifying their heating and cooling systems, upgrading to more efficient fridges and induction cooktops, and installing batteries and heat pumps.

Eligible assets or upgrades will need to be first used or installed ready for use between 1 July 2023 and 30 June 2024.

Ms Dennis said the energy industry is now also highly focused on costs from both the cost-of-living crisis facing consumers as well as the costs needed to run and grow a business and industry. 

“We’re in a cost-of-living squeeze, and at least two-thirds of the population are looking for deals,” she said.

“Those who changed electricity providers in the past year are almost 40% more likely than the total population to look at price comparison websites, and there are more than 20% more likely to look at ratings and reviews before purchasing." 

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