Renewable energy generation by leather businesses
Renewable energy is energy that is generated from continuous natural sources.
Microgeneration is small-scale use of natural sources to generate electricity.
Generating renewable energy can save you money and reduce the amount of greenhouse gases your business emits.
Renewable energy sources include:
- water or hydropower
- wind power
- solar power
- wave power
- tidal power
- biomass
- anaerobic digestion.
Financial benefits of microgeneration
There are three potential income streams from microgeneration:
- export tariffs
- feed-in tariffs paid by the government for every kWh of electricity generated
- green energy certificates.
If you generate more electricity than you need you can sell the extra electricity back to your electricity company. The payments you receive for selling electricity are called export tariffs.
If your business is covered by the CRC Energy Efficiency Scheme you can claim credits for any electricity you generate.
See our guidance on the CRC Energy Efficiency Scheme in:
England on Business Link: The CRC Energy Efficiency Scheme
Northern Ireland on NIBuinsessInfo: The CRC Energy Efficiency Scheme
Scotland on Business Gateway: The CRC Energy Efficiency Scheme
Wales on Business.Wales.gov.uk: The CRC Energy Efficiency Scheme
The government has introduced feed-in tariffs across the UK for both businesses and households.
Feed-in tariffs provide financial support for low carbon electricity generation in projects up to five megawatts (MW). The government guarantees payment to microgenerators for every kilowatt hour of electricity you generate by renewables, including electricity you generate and use yourself.
The money you get from a feed-in tariffs is in addition to any export tariff payments you may receive from electricity companies.
Department of Energy and Climate Change (DECC): Feed-in tariffs
If you operate a small-scale energy generator you can make your business money by selling green energy certificates to energy suppliers.
You can also save money by using the certificates to gain exemptions from some environmental taxes, such as the climate change levy. See our guidance on the climate change levy in:
England on Business Link: Climate Change Levy
Northern Ireland on NIBuinsessInfo: Climate Change Levy
Scotland on Business Gateway: Climate Change Levy
Wales on Business.Wales.gov.uk: Climate Change Levy
For further information, see the Department of Energy and Climate Change (DECC) website.
DECC: Green energy certificates
There are a number of interest free loans and other incentives available to businesses wishing to develop renewable energy generation.
See our guidance on the financial benefits of microgeneration in:
England on Business Link: Generating income from renewable energy
Northern Ireland on NIBuinsessInfo: Generating income from renewable energy
Scotland on Business Gateway: Generating income from renewable energy
Wales on Business.Wales.gov.uk: Generating income from renewable energy
Planning permission
If you want to build a renewable energy development you must apply for planning permission from your local planning authority.
Planning portal (England and Wales)
Northern Ireland planning service
Scottish Government: Planning authorities
Renewables in protected areas
If the site you wish to develop is in a conservation or protected area, you must notify Natural England, the Northern Ireland Environment Agency (NIEA), Scottish Natural Heritage or the Countryside Council for Wales (CCW).
Natural England
NIEA: Protected areas
Scottish Natural Heritage
Countryside Council for Wales
Find out if your proposed site is in or near a protected area by using online interactive maps:
Magic (England)
NIEA: Protected areas
Scottish natural heritage: Scotland's nature interactive map
Countryside Council for Wales: Protected sites and landscapes map
If your proposed site has archaeological or architectural interest you must inform English Heritage, Historic Scotland, the Northern Ireland Environment Agency (NIEA) or Cadw in Wales.
English Heritage
NIEA: Protected areas
Historic Scotland
Cadw
Generating hydropower
Hydropower is the force of moving water used to generate power. Hydroelectricity is electricity generated by hydropower.
To generate electricity from hydropower, you can either:
- use a water wheel or a turbine for run-of-the-river schemes which use the natural e flow of the water to generate hydroelectricity, or
- store water in a reservoir to be passed though an underwater turbine at pressure.
Even a small hydropower plant can cause water pollution, disrupt fish migration and cause ecological damage if badly designed and built. So controls are in place to protect the environment.
Environmental impact assessment of hydropower
If your hydropower generating capacity is above 500 kilowatts (kW) or if your development is in an environmentally sensitive area you will need to carry out a formal environment impact assessment (EIA) for your scheme. You will need to submit this to your environmental regulator and local planning authority.
Environment Agency: Water resources EIA Regulations
NIEA: Environmental impact assessment (EIA)
Scottish Government: Environmental Impact Assessment planning circular (Adobe PDF – 362 KB)
England and Wales: Licences and consents to generate hydropower
The licences and consent you need to develop hydropower depend on your development.
To develop a hydropower scheme in England and Wales you may need:
- an impoundment licence
- a flood defence consent
- a full or transfer abstraction licence.
Environment Agency: Hydropower
Northern Ireland: Licences to generate hydropower
To develop a hydropower scheme in Northern Ireland you will need an abstraction or impoundment licence from the Northern Ireland Environment Agency (NIEA) if your scheme uses more than 20 cubic metres (m³) of water per day.
NIEA: Abstraction and impoundment licensing requirements
Scotland: Authorisations to generate hydropower
To develop a hydropower scheme in Scotland you need an simple or complex licence from SEPA under the controlled activities regulations (CAR). Your authorisation will have conditions which you must comply with.
SEPA: Guidance for applicants on supporting information requirements for hydropower application (Adobe PDF – 446KB)
Generating wind power
Wind energy is generated using turbines. Turbines are either free-standing structures or built on existing buildings. A number of wind turbine designs have been developed.
What you must do
You must apply for planning permission from your local planning authority if you want to build a wind energy development.
You must complete an environmental impact assessment if:
- you plan to construct three or more turbines
- the hub height of any of your turbines, or any other associated structure, exceeds 15 metres.
Environment Agency: Water resources EIA Regulations
NIEA: Environmental impact assessment (EIA)
Scottish Executive: National policy guideline – renewable energy (Adobe PDF - 245KB)
Using biomass burners for combined heat and power
You can burn biofuels such biodiesel, woodchip and other plant materials to generate heat. This can be used to heat buildings and generate electricity. Combined heat and power (CHP) schemes recycle the heat used in electricity generation to heat buildings.
Defra has a list of biomass burners that you can use in smoke control areas in England, Northern Ireland, Scotland and Wales.
Defra: Smoke control areas – exempt appliances
See our guidance on using biomass for combined heat and power in:
England on Business Link: Biomass energy and anaerobic digestion
Northern Ireland on NIBuinsessInfo: Biomass energy and anaerobic digestion
Scotland on Business Gateway: Biomass energy and anaerobic digestion
Wales on Business.Wales.gov.uk: Biomass energy and anaerobic digestion
