How your business can generate its own energy

With the Paris agreement on reducing carbon signed, the challenge is on delivery to prevent catastrophic global warming. Your business can help lead the way.

Global giants such as Apple, Microsoft and Google are all seeking to reduce their carbon footprint by actively using or building renewable power sources such as hydro, wind and solar. You can get involved too – and be seen as an environmentally conscious company.

Why produce your own energy?

While the three huge technology companies became renewable energy converts because of concern about carbon emissions, there are many good reasons to produce your own energy. Even if you don’t think it’s important to do something about climate change, chances are your customers and clients do. Many of them are already prepared to vote with their wallets, and as the effects of global warming become increasingly evident – and catastrophic – this trend will only increase.

Another reason is simply that it will save your company money. Your return on investment will depend on how much power you use, the cost, type and size of the system, and the price at which your provider buys power from you. Nevertheless, in some cases rooftop solar – just one way of generating your own power – can pay back in as short as four or five years. It will also provide insurance against inevitable power price rises.

Rooftop solar photovoltaic (PV)

In recent years the price of photovoltaic solar panels has plummeted and the technology has become mainstream. For companies that have buildings with large roof areas – warehouses, distribution centres, factories, car parks – it’s becoming increasingly commercially viable to have solar PV panels on the roof. You don’t even have to own them – there are companies that lease rooftop solar PV systems.

While it’s true that power companies are slashing feed-in tariffs, solar PV owners are getting smarter. Instead of feeding everything into the grid, some companies use what they generate first and only export the excess. While it’s not really happening in Australia, peer-to-peer solar energy is a growing trend elsewhere. Others use software to sell directly into the national electricity market.

Another growing trend is installing batteries to extend the period of time companies can use the power they’ve generated themselves. With companies like Tesla, Enphase and Redflow producing sleek, integrated battery units, this movement will only gather force as solar PV and battery prices come down and grid prices go up.

Wind turbines

If you have the space, or can buy into a community wind farm, wind is a possibility. Current technology, however, favours large-scale deployments. Despite many companies trying to make it work, small-scale wind has been comprehensively trounced by rooftop solar when it comes to payback.

Green buildings

Many companies don’t own enough real estate to make solar PV or wind viable, but they can still generate their own power by moving into a green building. More and more six-star office buildings are popping up all over Australia, and they use a range of technologies to generate their own power including solar PV and co-generation or tri-generation.

Tri-generation plants use a natural gas-powered generator to produce cooling, heat and power. Because the plant’s waste heat produces heating and cooling and the plant is on-site, it’s highly efficient. It can be over 40 per cent more cost effective than buying power from the grid. It’s also not restricted to office buildings. Factories all over the world are now using tri-generation plants.

Generating your own power is becoming increasingly viable as technology improves and prices drop. Whether you build your own or just move into a green building, generating your own energy will make a difference to the planet and your company’s bottom line and reputation. It’s a win-win.

Disclaimer: Darren Baguley owns shares in Redflow.