In this modern global age, companies are looking for newer ways to improve their reputation. Using renewable energy resources not only accomplishes that, but also gives businesses increased efficiency, reliability, and a place within the green revolution.
According to a report by Bloomberg, corporations purchased 13.4 gigawatts of renewable energy in 2018 through long-term contracts. This renewable energy came in form from solar, wind and water energy and now in 2020, large companies such as Google and Microsoft use up to 5 to 7 billion kilowatts of green power per year, stemming from a decision to combat climate change and to prop up extra customer valuation for their companies.
Within this article, we will break down the benefits companies and businesses looking to earn when they begin to invest in renewable energy resources.
5 Reasons Businesses Should Use Renewables
1. Protection from Risk in the Long Run
With the increase of the use of renewables, climate change, and public health issues related to the use of fossil fuels will be reduced within your community.
Being the first mover within your industry or area to use renewables will become a major selling point for your business, and by reducing your energy costs now, you will stabilize your business’s energy costs for the future.
Such stabilization of costs can come from in the form of Power Purchase Agreements, which offer a fixed cost for your energy through renewable energy resources, which gives a business long-term financial certainty for their energy costs.
Law firm Baker McKenzie reports that “the primary motivation behind renewable PPAs is economic, with green/sustainable advantages as a runner up. Some 60% of surveyed corporates exploring renewable PPAs cited economic factors as their primary reason for doing so.”
2. Boost in Your Reputation Amongst Investors and Customers Alike
As customers and clients want to fulfill their role in buying cruelty-free and organic produce and meats, they will also look to increase their purchasing into companies who are combating climate change.
They want to do their part indirectly by supporting companies who are looking to move forward into using renewable energies, and investors will see the positive results of this.
Through using renewable energy resources for your company, investor confidence will skyrocket, as an improvement in customer relations equal higher profits and a better public reputation.
Also, offering the choice of supporting a green company over a non-green one can be the difference between a client or customer choosing your business over a competitor.
3. Upgraded Efficiency Combined With Falling Costs
As renewable energy technologies become more and more efficient, so will their cost-efficiency as well.
Researchers within Japan have achieved a phenomenal 26.3% efficiency record for their silicon solar cells, and according to Lazard’s Levelized Cost of Energy Analysis, the cost of energy from utility-scale solar plants have exponentially decreased by 86% since 2009.
Stemming from this, the International Renewable Energy Agency says that renewable energy resources are now at least as cost-efficient as other sources of electricity/energy in many major markets, and by the end of 2020, renewable energy technologies will be more cost-effective than fossil fuels.
4. Off-Grid Power Reliability
With certain businesses being more susceptible to natural disasters and power outages, the push towards energy storage for renewable energy resources will be a worthwhile endeavor.
By being able to continue doing business without a hitch after a natural disaster or power outage, your business will be able to turn a profit even when your industry and competitors are in the dark.
Also, by implementing renewable energy resources such as windmills or solar farms, your local community can also be protected from a lack of power, which will stimulate public opinion of your company, thus improving sales and your reputation as well.
5. Help From Efficient Energy Initiatives
Going green helps you save a lot of green, but you can also get some more green. I know that might be a tongue twister, but energy initiatives such as the Energy Star Program for commercial buildings have helped business and companies save nearly $10 billion in energy costs alone in 2016, and on average, Energy Star certified buildings use 35% less energy than non-certified buildings nationwide.
What does this mean for your company and/or business? It means that if your firm qualifies for such energy initiatives, the rerouted cost of your energy will be more cost-efficient and more cost-effective, without a major change within the infrastructure of the energy needs of your business.
6. Reduced Energy Bills and Protection from Price Fluctuations
The biggest reason why most companies would like to switch to renewable energy resources is to reduce their electricity bill.
The installation of solar panels, wind turbines, and smaller hydro-electric dams will reduce the energy costs of business and will cover a significant portion of their energy needs, and with energy storage systems, companies that have renewable energy technologies can house said energy, which will make them truly an off-grid business.
From there, a business can also protect themselves over the price fluctuations that on-grid utility providers have. Utility providers such as SoCal Edison are looking to increase their energy rates by up to 14%, which will ultimately make energy and the usage of it more expensive.
By using renewable energy resources and technologies, companies save more, protect themselves from rising energy costs and gain an improvement in their reputations from consumers/customers.
From reducing your energy rates to protecting your business from rising energy costs, going renewable is the best choice in today’s modern economy.
The generations after you will love you for it, your wallet will love you for it, and best of all – the planet will love you for it.
There isn’t anything else in the world that can save you money, help improve your business’s reputation and save the environment at the same time.
When you move your business towards renewable energy, you move towards a greener and more lucrative future.
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Author Bio: Jeff Long is an avid hiker and camper that researches the latest renewable energy trends and tech.