Let's go through the main reasons why companies should not wait any longer to invest in green technologies.
1. Lower energy costs
Financial savings are certainly the most compelling reason to switch to your own green electricity production. Would you believe that the graph shown here is not the value of bitcoin or another cryptocurrency, but the price development of electricity in the short-term market over the last year. At the beginning of 2021, the base price of one megawatt-hour of electricity was around €50, though by the end of the year, electricity traders paid up to €420 for the same megawatt-hour.
Though the situation is a bit better today with electricity trading for about €200 per megawatt-hour, this historic high left many market participants unpleasantly surprised. Unlike households, i.e. regulated entities under partial state protection, non-regulated entities such as companies have to manage this problem on their own..
There is one formula that applies to renewable energy sources (RES) – the more expensive the electricity is, the more financially beneficial it is to produce your own. In addition, the cost savings of a battery storage system in combination with local energy sources, including the possibility to reduce energy-related expenses such as reserved capacity and reactive power, is immediately reflected in lower monthly electrical bills.
2. Truly helping nature
Going green is the right way forward, but activities and steps taken in favor of sustainability must be practical first. A fitting example is the replacement of plastic bags with paper bags. Did you know that in order to zero the environmental impact of using a paper bag, it needs to be re-used at least three more times? This means that throwing a disposable plastic bag in the correct binburdens the environment less than buying a seemingly green paper bag.
The energy sector is generally the biggest long-term air polluter and stands at the absolute beginning of the carbon emissions production chain. To help our planet, we need to start with the heart of the problem.
Emission-free alternatives such as renewable energy sources and battery storage systems certainly have a positive impact on the environment, but they must be installed and managed in an intelligent way. What is more, these technologies can quickly repay the carbon debt, making them effective tools in the fight against climate change. The carbon footprint of batteries and renewables has been covered extensively on our blog.
Even battery storage alone can be considered a green technology as it contributes to reducing carbon emissions by providing so-called ancillary services, i.e. the batteries charge when there is a surplus of electricity in the power grid and discharge when there is a shortage. In this way, battery systems replace fossil-fuel providers in ancillary services and help to ensure the smooth operation of the transmission system.
3. Available even without your own financial resources
Green technologies are not cheap, but the benefits they offer are definitely worth the investment. The purchase price of a battery storage system together with solar panels can be repaid even three times over the approximate 15-year battery lifespan. Considering the 25- to 30-year lifespan of solar panels, batteries can be replaced at the end of their lives with new technology, which will certainly be much more efficient and, following the development of battery prices, also cheaper.
Today, such an investment may no longer be just the case of companies with free or easily accessible funds. With the new Energy as a Service model (EaaS), companies can obtain green technologies in the form of an "operating lease" which completely eliminates the problem of high initial costs. In addition to easier access to the technologies, all the troubles with management, service, and maintenance of green technologies are eliminated as well.
4. Higher independence and energy self-sufficiency
Sometimes even one short power outage can cause major problems and financial losses. Companies working with technologies highly dependent on a continuous power supply need to have reliable protection against blackouts. Typically this is performed by either a backup power source that can provide electricity in the case of longer power outages or more responsive equipment, such as a UPS (Uninterruptible Power Supply), which can cover shorter micro-outages.
Diesel generators are the most common energy backup source. However, response times can be quite long. Depending on the degree of preheating of the generator, this can vary between 10 to 30 seconds. Battery storage works basically immediately and can serve as both a backup source and UPS. With an on-site renewable energy source, companies naturally become more energy self-sufficient and less dependent on the supply of electricity from the power grid.
5. Outstanding non-financial results
From the perspective of customers, stakeholders and investors, companies that invest in sustainability and green technologies reach much higher evaluation scores than those that neglect this aspect. The volume of investments streaming into environmentally conscious companies actively engaged in ESG activities (Environmental, Social & Governance), i.e. companies managed sustainably, fairly and in a way that protects the environment and local affected communities, is expected to reach up to $53 trillion by 2025.
A good ESG score means that a company sets high long-term goals in terms of environmental protection, protection of communities and conscious management, and succeeds in achieving these goals. Together with promising financial statements, ESG reporting becomes an ace up the sleeve of all companies seeking investments. On-site renewable energy sources in combination with battery storage significantly reduces the amount of direct GHG emissions produced, which can be also disclosed in ESG reports.
6. Next-generation brand building
Sustainability is fast becoming one of the main priorities in the consumer decision-making process. This is due to the fact that an increasing part of the population with the highest spending power is made up of so-called millennials (born 1981-1996), who, unlike the older generations, put much more emphasis on protecting the environment.
Did you know that today's millennials are twice as willing to change their habits in favor of sustainability as baby boomers (born 1946-1964)?
The latest age group, Generation Z (born 1997-2012) is so far the most serious about environmental protection. An article published by Forbes recently revealed that GenZ often makes decisions based on personal values and principles that protect their community and the environment, and is willing to pay up to 10 percent more for sustainable products than other generations.
Are you ready to be part of the renewable energy revolution and take your energy independence to the next level? Contact us today! Our experts are here to help you find a tailor-made solution to your needs.
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