Do electricity bills eat up a significant share of your revenue? Going solar may be the right solution for you. Since the industry is in its nascent stage, there is little information about how to onboard the solar power bandwagon. In this post, we have encapsulated all that you need to know before making the switch to solar.
Today, thousands of companies in India, from large corporations to small businesses are embracing commercial solar power systems.
It’s essential for India, the third-largest emitter of carbon dioxide in the world, to emerge as a forerunner in renewable energy. The government is committed than ever before to go solar. The country has set an ambitious target of generating 175 GW of power from renewable sources by 2022 out of which 100 GW alone comprises from power from solar.
What are the benefits of using solar energy?
Is your business ready to enjoy the many benefits of solar energy? Here are a few things to keep in mind, while adopting solar power:
SPAAS – The Future of Solar Energy is Here
If you lack the technical expertise and know-how of installing and maintaining a solar plant, opt for the Solar Power as a Service (SPAAS). This model enables you to get a solar plant installed on your premises without any capital investment. All that you have to do is sign a PPA (Purchase Power Agreement) with a solar solutions company, and you can start saving on your power bills from day one.
Be Aware of the Different Types of Solar Panels
Solar panels are categorized into three main types – grid-tied, grid-interactive and off-grid. The area of your rooftop also plays a vital role in determining the type of panel that works for you. With advances in solar technology, the major types of solar panels are now quite affordable.
The government offers various subsidies for businesses for installing solar panels. Check the subsidies available in your state/city, to reduce the overall costs of installation.
How Solar Energy can help in saving money for your business?
Drastically Reduce your Electricity Bill
According to a recent study by CEEW and power distributor BYPL, by installing rooftop solar panels for business, you can cut down your overall energy bills by up to a whopping 95%. Even if you don’t have the capacity of 100% electricity generation, you can still significantly lower your electricity bills.
Protect your Business from Rising Energy Costs
Industrial units and commercial businesses are subject to high electricity tariffs in India. Further, states levy a range of taxes on electricity consumption, and price hikes are the norm year after year.
Solar Gives You Great ROI
While the initial cost of solar plant installation may seem exorbitant, it can arguably turn out to be one of the best investments for your business. Over the years, you can offset the initial capital expenditure with the savings, thereby gaining a high ROI.
Earn Additional Income via Net Metering
At any time, if you generate more solar energy than you can consume, you have the option to feed the extra power generated into the grid. At the end of the billing period, if you have fed more energy into the grid, than what you have consumed, your state electricity board pays you for it based on the “net metering” calculations of your state.
Win Investor, Client & Employee Confidence
According to a report by Statista, India was the world’s third-biggest generator of carbon emissions, right next to China and USA for the year 2016.
Hence, by adopting renewable energy sources, like solar, you can bolster your green credentials. This goodwill in turn boosts your sales and revenue
Solar Installation: A challenge in Commercial Sector
One of the biggest worries plaguing businesses of all sizes is the huge electricity costs. The worst part here is that the conventional grid energy supplied by your state’s electricity board is unpredictable, inadequate, and comes with increasing costs.
In India, the tariff paid by commercial and industrial electricity consumers is significantly higher than residential consumers. By making the switch to solar systems, you can enjoy significant savings. You not only reduce the current electricity bills of the company but also protect it from future price rises.
While it’s true that going solar requires initial costs – the panels, installation and more, thanks to rapid advances in technology, the prices today are significantly lower than what they used to be a few years ago.
Is Solar Power a sustainable energy source?
A report by Neilsen reveals that customers are willing to pay extra for products from brands that are sustainable. The survey found out that 73% of millennials and 66% of consumers belonging to other generations are willing to pay extra for sustainable brands. A 2017 study on CSR reveals that a whopping 92% of consumers trust a brand that supports environmental and social causes.
Going solar not only has a significant impact on the environment but also affects your bottom line positively. Solar energy is a clean, green source of energy that reduces the carbon footprint of your business significantly. It doesn’t harm the environment in any way – no chemicals or greenhouse gases released into the air.
What is the scope of solar power in India?
According to a report by Bloomberg, by the year 2040, a whopping $3 trillion will be invested in solar, and by 2021, solar power plants will become cheaper than coal, in India.
A recent report, states that the prices of solar installations have steadily dropped over the years, which in turn have increased the number of installations worldwide.
Some of the world’s biggest and powerful corporations like Walmart, Ikea, Facebook, Google, and Apple have gone solar. More than 240 companies globally have commited to go 100% renewable by 2025. There are some compelling reasons that motivate both big and small companies around the globe to switch to Solar Power. We have listed some of them below.
Big Brands opting Solar Solutions
Today, some of the biggest climate leaders are not national leaders but huge corporations. Some of the biggest corporations, like Walmart, IKEA, Apple, and Costco are the biggest users of solar power, as mentioned in this report by SEIA (Solar Energy Industries Association).
Closer home, hundreds of corporations big and small have emerged as climate change leaders, thanks to their adoption of rooftop solar panels, solar power purchase agreements, etc. Ultratech Cement, Pepsi Co, TVS, IFB, Vatika, Decathlon, Whirlpool, Amway, Cipla, Yamaha Motor are a few of the hundreds of companies that have gone solar.
There are plenty of beneficial reasons for businesses to switch to clean solar power. Going solar allows businesses of all sizes and across industries to reduce their operational expenditures, improve their bottom line, increase their brand’s reputation, and gain competitive advantage.
Additionally, don’t forget to mention that by going solar, your business does its bit in creating a planet that is favourable for future generations. You are leaving behind a legacy and showing your commitment to society and the planet.