Renewable energy - is it for your business?
Electricity generation is a key driver of climate change, a key solutions is renewable energy
Conventional power plants generate electricity by burning fossil fuels like coal and gas, which contribute to global climate change. A new wave of power plants are being built that generate electricity from renewable sources, such as offshore wind and solar panels. Many of these major investments are made and determined by your electricity provider, which means as a small business, you have less influence. However, there are other ways you can create value for your business and the planet with renewable energy.
Why should SMEs invest in renewable energy?
Many larger business customers are facing scrutiny about their carbon footprints - and this is extending into their supply chain. Reducing your carbon footprint will help attract and retain large customers, and when done right, can reduce your operating costs at the same time. Renewable energy is an important option for SMEs to consider. Here’s what to think about.
What is achievable for a SME?
For some smaller businesses and homeowners, investing in roof-mounted solar panels to reduce electricity usage is within reach, and can be profitable. Others options such as building a wind turbine farm are major investments that most small & medium sized businesses (SMEs) cannot afford. We suggest that SMEs focus on solar panels, storing excess electricity with small scale battery systems, and reducing your electricity needs with efficiency.
There is no one-size-fits-all approach to renewable energy for SMEs. When deciding if renewable energy is right for you, think about:
Do you have the space? Do you have access to the rooftop of the facility you operate in? Do you have permission to install solar panels and/or other infrastructure there? For renters, this may be a trickier question than for property owners.
How much does it cost? What are the up-front costs of the solar panels and / or battery system? Think about both the equipment costs and the professionals who you will need to help install it. You could estimate these costs by requesting a quote from a professional in your area.
What benefits do you expect? This depends on how much your electricity costs, how often the solar panels will generate electricity (e.g. sunny weather), how long the solar panels will be used for, whether you need a loan, if there are government rebate programs, and if you’re able to sell excess supply back to the grid.
This investment can be a complicated decision - that’s why we’ve created a (free) excel template to help assess if solar panels are the right investment for your business. Even if renewable energy isn’t the right solution for you, a small business can attract big customers and reduce costs with energy efficiency, or making progress on other critical sustainability issues.
