The energy sector is undergoing a rapid transformation as new technologies are driving innovation in this area. Governments from all over the world are developing and passing legislation that promotes the use of sustainable energy resources that are more efficient, safe, and environment-friendly than the existing ones. R&D is one of the key factors that contribute to innovation in the energy sector. Since the UK is one of the first major economies to pledge net zero emissions by 2050, it will require extensive research and development to fulfil this promise. Climate change is a pressing issue that affects the whole world and requires urgent measures and solutions that can help save and preserve the planet.
R&D and Innovation in Clean Energy
Clean energy has been the focus of R&D and innovation in the past years. Thanks to this, we have managed to develop a whole range of clean energy products that are cost-effective and efficient and environment-friendly. Many of the most popular products were developed after extensive R&D in clean energy are:
- Wind Turbines
- LED Lights
- Solar Panels
- Lithium-Ion Batteries
- Smart Grid Technologies
- Biomass Boilers and Stoves
Newer Areas of Innovation
While sustainable energy resources remain one of the top areas of innovation, several other technology trends could positively impact this industry’s functions and progress. Some of these top trends of innovation in the energy sector are:
- Blockchain – This technology is expected to make electricity more affordable by bringing all energy stakeholders like producers, distribution network operators, financial service providers, metering operators, and other technicians and traders under a single decentralised network.
- Energy Storage – A lot of R&D is happening to develop efficient energy storage technology that can help consumers “stock up” energy for future use, thereby reducing the grid loads during peak periods.
- Internet of Energy (IoE) – By implementing smart distributed control through energy transactions between users, IoE can help design and build more efficient energy systems.
R&D Tax Credits for the Energy Industry
The energy industry is one of the most important sectors for the UK economy, contributing around £28 bn to it each year. Moreover, it also supports all other major industries that play a part in supporting the economy. Although R&D and innovation are routinely conducted and are vital for the progress of this sector, many businesses fail to make the most of the many government incentives available for those conducting ground-breaking research in this area. R&D Tax Relief is one such scheme that can help you receive substantial cashback for any innovation in the energy sector. This funding can not only help businesses continue their R&D but also help fund expenses related to staff costs, new product development, software and technology expenses, consumables, and more. If your business is conducting R&D within the energy sector, we could help you claim R&D Tax Credits for the same. Contact us to learn more about our claims process.