Like any of the many eco-solutions a company can choose to implement, investing in renewable energy is seen as something of a responsibility – an obligation to the future of the planet and not something typically done for “business reasons”. This is an obligation that has become only stronger in recent years, with a substantial proportion of the blame for the world’s current environmental peril being laid at the door of large commercial enterprises. Public opinion now seems to have settled on the idea that big business should be seen to make a serious investment in renewables – and they will vote with their wallet.
What may surprise many business owners though is that investing in renewables is actually not the sacrifice for public image that many believe it to be. Expanding into renewable energy can actually lead to significant savings for a company, on top of many other benefits.
Governments now typically offer business incentives for companies to invest in renewable technologies. Combined with both the brand boost doing so creates and the actual savings that can be made, this makes for a threefold benefit for a company. It is for these reasons that renewable energy is becoming an attractive investment for countless companies across the world.
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Solar Power and Battery Energy Storage Systems
Solar energy systems have been steadily gaining ground in recent years as their price has increasingly come into the affordable range of most consumers and small businesses. They are now fairly widespread, and you can expect to see solar panels upon the roofs of businesses and residential properties alike. As new manufacturing practices have been found in the production of solar panels, the market for them has only grown.
As solar energy has become more affordable then, the onus upon companies to invest in the technology has increased as well. It becomes less reasonable to shirk this form of renewable energy when its affordability is already well within the reach of nearly all businesses bar the very smallest. It is no surprise then that many Fortune 500 companies are fully invested in solar power and receive tax rebates and other incentives for using it.
The benefits of solar power, beyond the generous incentives offered by government authorities, are fairly obvious. There are many costly disadvantages to relying solely on fossil fuels. By investing in solar, companies reduce their reliance on grid power, slashing utility bills, and even potentially having some energy left over to sell on (very often back to the national grid).
Ultimately, the savings to be made from investing in solar power totally dwarf the initial investment involved. It has been calculated that a medium to large sized business could expect to make between £30,000 and £40,000 in utilities savings over a ten-year period
Having mentioned that excess power generated by solar energy systems can be sold onwards for increased profit, it should be noted that this requires using battery energy storage systems. Simply enough, battery energy storage systems (or BESS) are the means by which excess power is stored on site for later use or sale. This technology uses large batteries. They can be a little costly to install but BESS have two things to recommend them in spite of that potential drawbacks. For one thing, their use is again very often incentivised by government, and, for another, they represent another case where the potential savings far outweigh the initial investment.
One of the best things about using BESS is that companies can be seen to be doing their bit towards a circular electrical economy by not only reducing their own reliance on fossil fuels, but also by actually reducing the amount that the national grid uses as well. Not to mention the fact that it could lead to a whole new revenue stream for the company too. Solar power combined with BESS benefits the environment in a way that goes far beyond the company itself.
CSR Programs
CSR programs refer to the campaigns undertaken by businesses in order to demonstrate to a discerning public that they are engaged in corporate social responsibility. CSR can be thought of as a new brand and certification that companies looking for a wider customer base crave. Naturally, earning a reputation for CSR involves incorporating a range of socially responsible practices in order to boost the brand of the company. Such projects can include community outreach, ethical employment practices and – naturally enough – investment in renewable energy sources.
If you want to be a bit more cynical (realistic?) about it, CSR programs are most essentially a way to improve your company’s brand and in turn draw in a more ethically conscious consumer base. For example, CO2 fire extinguishers available in the UK and widely used in British businesses are known to be pretty harmful to the environment and can, in theory, be replaced by newer ones that do not contain environmentally hazardous materials. Making such a change, however beneficial to the environment, would not usually come under CSR and would certainly do little to boost a company’s brand, simply because consumers know and care little about what fire extinguishers a company uses.
No, a CSR program is all about building a relationship with a company’s customers and the community within which it is situated. Accordingly, it usually involves attention grabbing initiatives, the kind that can send a discernible message to a company’s customer base.
Costs of Installing Renewable Energy Technology
One of the rosiest prospects for companies wishing to invest in renewables and CSR programs is that the number of companies doing so – and the incentives offered for doing so – only increase as the cost of installing the relative technology goes down.
Restricting things only to solar panels, there are two factors working in favour of making them more affordable. The first of these is that there are a range of government subsidies that bring the prices of such systems down. These are separate from the incentives offered to companies that buy them, thus entailing double savings. The second factor is simply that the production cost and therefore market price of the technology continues to decrease.
There has never been a better time to invest in renewable energy technology. The benefits of doing so are clearly significant and we may even be reaching a point where failing to do so can be actively detrimental for your business. Don’t miss out, invest in renewable energy now.