In response to mounting pressure from investors, customers, and employees to address Environmental, Social, and Corporate Governance (ESG) concerns, American businesses are embracing renewable energy as a major resource for clean and reliable power. Solar energy in particular has emerged as a key component in corporate sustainability initiatives due to historically low prices spurred by the development of cheaper and more efficient equipment. According to SEIA, the price per watt has plummeted by more than 70% in the last 10 years. Many U.S. corporates, including Bloomberg L.P., PepsiCo, and Amazon, are taking note of these favorable economics and have been utilizing solar not only to meet their sustainability targets but also to hedge against the high cost of utility-grid electricity. From flexible installation and ownership options to attractive financial incentives, here’s a rundown of some of the most compelling aspects of corporate solar.
The two main types of solar installations are offsite and onsite. Each provides a different pathway to incorporating solar energy based on different needs. Offsite installations enable companies to benefit from solar energy on a large scale because the system size is not constrained by the space of their property. They allow for the purchase of large quantities of solar renewable energy credits (SRECs) that go to support internal renewable goals as well as RE100 certifications. Onsite solar, also known as distributed generation (DG), refers to when a solar system is installed directly on a client’s property, with the energy being produced where it’s consumed. There’s huge momentum behind this type of solar because, in addition to helping corporations meet sustainability targets, onsite systems yield high returns on investment by allowing the owner to offset energy costs while taking advantage of attractive utility policies and government incentives.
There are a variety of utility benefits that are available to companies who choose to own and install an onsite solar system. Benefits vary from state to state, but here are a few of the most common ones.
In addition to favorable energy rates, there are various state- and federal-level incentives that further strengthen returns on onsite solar projects. Many of these policies stem from Renewable Portfolio Standards (RPS) that require that a certain portion of the energy production come from renewable sources.
If your company is interested in evaluating solar, PowerFlex can provide a tailored analysis based on your portfolio, energy usage, and available incentives. PowerFlex is agnostic to project structuring, whether you wish to own the solar system outright or take advantage of third-party models like a power purchase agreement (PPA) that allows companies to enjoy the benefits of solar energy without having to commit capital. Lease arrangements with a path to future ownership are also available, among other options. No matter what, we’ll make the process as seamless as possible. Contact us today for a free solar consultation.Contact Us Today!