King Charles’ application to create a solar farm at Sandringham reflects more widespread efforts to reduce energy’s contribution to the carbon footprint of the UK’s built environment.

With a legislative target of net zero by 2050 (compared to 1990) for greenhouse gas emissions, considering how to integrate sustainable energy and heating systems into business premises has never been higher up the agenda. With many businesses also adopting Environmental, Social and Governance (ESG) strategies, the focus on green energy is intense.

However, companies embracing sustainable energy options must also factor in the associated risks, which must be included and mitigated by their risk assessments if issues, losses, and insurance claims are to be avoided.

The first step is to ensure that any green energy system is certified and listed by a product certification scheme and is only installed by competent, trained engineers with relevant industry qualifications. Ongoing maintenance is essential, according to the guidelines provided by the system’s suppliers. Maintenance should only be carried out by competent people and also be part of a wider planned preventative maintenance programme for either the building or the site.

Meanwhile, specific risks emanating from the installation of a sustainable energy or heating system should be included in both the risk assessment and fire assessment. The impact of losing the energy facility should also be a consideration of the Business Continuity Plan.

Staff must be fully trained in what to do should any fault or issue emerge. This training should be imparted during the induction process and reinforced during frequent refresher training.

This is because such energy systems come with different hazards to those with which most businesses are typically familiar. A bio-mass-fueled heating system, for instance, increases the business’s fire load due to the bulk fuel storage required.

As the Institute of Chemical Engineers states: “Biomass is an inherently dangerous category of substances, especially in bulk, and has significant fire and explosion hazards.”

Waste and biomass naturally generate their own heat, making them susceptible to spontaneous combustion, while methane often builds up around decomposing material. Since 2002, £20 billion in financial support has been granted by the UK government to encourage the use of biomass heat and power by businesses and households, and the risk is very real for many.

Risk control measures may include a Dangerous Substances and Explosive Atmosphere Regulations (DSEAR) risk assessment. Practical housekeeping will involve keeping combustible materials away from the fuel bunker or store, ensuring that hot sparks and embers cannot ignite the fuel source, and safely disposing of ash. Suitable fire suppression systems and automatic fire and gas leak detection (and gas shut-off valves) should be considered. Burn prevention will require keeping personnel away from hot surfaces on the boiler or flue.

Where sustainable energy or heating systems like biomass anaerobic digestors, heat pumps or Combined Heat and Power (CHP) systems have an electrical control or plant room, this should be some distance from the main building or housed in a separate fire compartment.

Photovoltaic panels expose the roof to fire, which should preferably be non-combustible. A big leap in solar panel fires has been attributed to poor fitting, so only use accredited professionals. Access for maintenance and cleaning personnel, as well as firefighters, is essential, and an automatic fire detection and accessible isolation switch is advisable.

Heat pumps, the cost of which the Energy Security Bill said it wanted to see lowered, also come with specific risks, including the potential for flammable refrigerant to cause a fire and legionella when the correct water temperature is not maintained.

Businesses using Lithium-ion batteries have greater fire exposure due to thermal runaway risks. Consideration must be given to the location of the recharging facility and the available access to staff, along with battery handling, ongoing damage inspection and end-of-life battery disposal.

Automatic fire detection and early warning systems that alert of off-gassing may be required. Considering the speed and ferocity of Lithium-ion battery fires, well-practised employee evacuation measures and fire training in Lithium-ion battery fires are essential.

These are just some additional risks surrounding green energy and heating. Businesses must embrace and efficiently and effectively manage them, committing to spending on control and alert technology and practical strategies, such as training, maintenance, tightly controlled staff access to plant and boiler rooms, and fire procedures.

With all the above green energy solutions, you also need to adhere to the conditions of your insurance policy to ensure a claim is paid following an accident. For example, if there is a large fire which was caused by a lack of maintenance or non-compliance with official regulations for the new equipment, you could have your claim refused in full and be landed with a fine.

The future of the UK commercial sector’s power supply has to be green, but no business should be naïve of the risks associated with sustainable heat and power systems.

Talk these through with L Wood Insurance Brokers today. Contact us today at 1888 903 7340.