An article published by Clean Technica on 10/11/2023 entitled Shining New Light on The Onsite Solar Market highlights the great incentives businesses can avail of in the wake of mounting pressure for companies to reduce their carbon emissions. The article states that 42% of Fortune 500 companies have committed to climate milestones for 2030. In various ways, they are exploring different avenues to decarbonize their operations. One increasingly attractive option for these companies is harnessing the power of onsite solar – deploying their own solar installation onsite.
The adoption of renewable energy resources, such as wind and solar power, is a common strategy for companies looking to decarbonize their operations. However, simply purchasing electricity from the grid does not grant companies control over the source of that electricity. This is where onsite solar projects come into play. They provide companies with the capability to take matters into their own hands, being able to control the generation of renewable energy. Onsite solar projects represent a proactive step towards deploying brand-new renewable energy to the grid, enhancing its capacity and reducing emissions. Of course, many businesses resort to off-site PPAs to procure clean energy to support the reduction of carbon emissions, but the public doesn’t see that. Visibility is everything!
Onsite solar projects also can be tailored to the energy needs of individual businesses and can be implemented by companies of various sizes, working around certain limitations they might have. The Inflation Reduction Act of 2022 (IRA) passed by the Biden Administration has further bolstered the attractiveness of onsite solar projects by offering increased incentives, potentially covering up to 60% of the total project cost. This enhanced tax credits from the IRA are a game-changer for onsite solar projects. They make it more affordable for companies to invest in them. Apart from reducing carbon footprints, onsite solar projects come with several other benefits like providing insulation against fluctuating energy prices and thus making budgeting and forecasting more manageable. Also, generating one’s own clean energy onsite means not having to rely on grid electricity, which is much more expensive during peak times of the day. This can result in significant cost savings as well. And most importantly, in an era where sustainability is paramount, visible projects like onsite solar installations are a powerful way for companies to demonstrate their commitment to environmental responsibility.
Apart from the financial benefits, I guess it comes down to public image for companies wanting to make a lasting impact on its community and the environment. These solar panels not only serve as a visual testament to a company’s commitment to sustainability but also provide practical benefits, like protection from harsh weather elements and additional shade in parking lots to benefit employees and customers. This is an absolute win-win strategy for companies who want to bolster their brand reputation.