Clean energy solutions for businesses
Large and small business owners can decrease their operational costs with clean energy solutions. Choosing clean energy can help reduce your carbon footprint, meet regulatory requirements, and save money on operational costs. Options such as demand response programs, solar energy, and installing electric vehicle (EV) chargers provide unique benefits for businesses.
“Depending on your consumption and local incentives, you can save 10% to 20% on energy expenses by implementing clean energy solutions,” said Gabriel Phillips, chief executive officer of Catalyst Power.
Learn more about clean energy alternatives for your business, including advantages and drawbacks.
Demand response
Businesses can participate in demand response programs that incentivize them to lower their energy consumption during high-demand periods. These programs can help businesses lower electricity costs by avoiding peak-hour pricing while keeping the grid stable.
While you can save money, consider the financial impacts of participation, such as adjusting operations to change usage habits. Phillips said, “Business owners must weigh the revenues of participating in a demand response program with the avoided cost in operations.”
If you can adjust your business operations to match off-peak hours, demand response may be a good option for you. If you do not have schedule flexibility, consider other options for savings.
Community solar
Businesses can support solar energy development by participating in a community solar program. With community solar, you subscribe to a solar farm in your area and receive renewable energy credits (RECs) to reduce your electric bill. Installing solar on your roof is not a practical option for every business. Community solar is an alternative to help your business meet regulatory requirements and save on energy bills. Review your contract before signing up to understand costs and potential savings.
Solar lease or power purchase agreements
Purchasing and installing solar panels on your business is a significant commitment. “Investing in your own solar array is like a business. You have to know how to run the business with maintenance and monitoring of the system. There is a lot to pay attention to,” said Phillips.
You can also benefit from solar energy through leases or power purchase agreements (PPAs). With these options, a company installs and maintains the solar panels, and you pay for the electricity they produce, often at a cheaper rate than regular utility costs. This setup offers businesses savings and helps the environment.
It’s important to review the contract details before agreeing. Many lease and PPA contracts last 25 years, so you may want to consider other options if this doesn’t match your company’s long-term plan.
Electrical vehicle chargers
Installing EV chargers at your business offers various benefits, but it’s difficult to predict costs. While some businesses provide EV chargers for customers, others offer it as an employee benefit.
Phillips said, “Investing in EV charging infrastructure involves significant upfront expenses, and the payback time frame is uncertain. It’s challenging to predict how frequently people will use the chargers and whether you should charge for their use to generate revenue.”
Businesses with environmentally conscious customers or employees may benefit from investing in EV chargers, though the upfront costs are expensive.
Renewable energy plans
Renewable energy plans offer a way to power your business with green energy sources, like solar or wind, without the hassle of installation. Call the number on your screen and ask about renewable business energy plans to find a sustainable plan tailored to your business energy needs.