Why are businesses transitioning to renewable energy sources?
India is the 3rd largest country where renewable energy is cheaper by 12% to 29% compared to the lowest-cost fossil fuel and is continuously growing to be an energy-independent country by the energy transitions towards a cleaner, greener and sustainable future.
Businesses have a large energy consumption capacity and to reduce the environmental impact of the businesses it is very important to go green and reduce greenhouse gas emissions by transitioning towards a renewable source of energy. It not only enables them to contribute towards the environment but also diversifies the source of energy to hedge against fluctuating fossil fuel prices at the same time creating job opportunities in the solar energy system ensuring that the business not only benefits economically but also environmentally!
Why Renewable energy?
Renewable energy is an economical option as it can save businesses a lot of money by reducing their energy bills.
Changes in the amount of available fuel, demand for electricity, and the costs of generating, distributing, and transmitting electricity all impact the price of energy and depending on the capacity, energy produced, and energy consumed from the solar panels, this energy can cover a significant amount or even all of the energy needs of the business.
Owning the source of generation of the power makes it much better as you don’t have to worry about potential price fluctuations.
If a business owns its power generation resources, it doesn’t have to worry as much about potential price fluctuations as it provides them with a greater degree of certainty when forecasting costs.
If a business installs an energy generation system that produces more energy than it uses, it can often send that energy back to the grid. This means that renewable energy can be more than just a money saver. It can also be a source of extra revenue. Sending energy back to the grid can help offset the costs of installing solar panels or another energy system.
Installing solar panels and other renewable energy resources requires a considerable upfront investment. In order to encourage the development and manufacturing of renewable energy technologies locally, the government has provided subsidies for capital expenditures.
As part of its Production Linked Incentive Scheme and National Program on High-Efficiency Solar PV Modules, the Ministry of Natural Resources has issued guidelines to support the manufacture of high-efficiency solar PV modules with Production Linked Incentives (PLIs) on sales of such modules.
By switching to renewables, companies are helping to combat climate change and prevent public health issues associated with the use of fossil fuels. If renewables are widely adopted, this could help reduce risks associated with these issues in the future.
In fact, the IEA suggests that investment in clean energy is considered to be a great economic opportunity since India has a leading role in the development of renewable batteries and green hydrogen.
It is possible to generate over a million jobs in the clean energy sector in India if non-fossil fuel energy sources are produced more efficiently by 2030. Local employment opportunities are generated through the majority of jobs created, which brings the transition closer to communities. It aligns with India’s aim of achieving clean energy and employment goals at the same time.
Institutions are recognizing that using clean energy can improve the health and well-being of their communities as investing in renewable energy jobs improves livelihoods and builds climate resilience.
Traditional energy sources like coal and oil have been linked to a range of health issues including the development of heart or lung diseases, respiratory problems, and cancer but by switching to clean energy sources, institutions can help to reduce air pollution, therefore, improving the health of the communities they are associated with.
In addition to that, clean energy can help to increase energy security by reducing dependence on foreign energy resources.
Many people still lack reliable access to electricity. The continued use of traditional fuels for cooking causes unnecessary harm to the health of many people. Electricity distribution companies with financial difficulties hinder sector transformation and high pollution levels have left Indian cities with some of the worst air quality in the world.
However, India is laying the foundations for the scale-up of significant emerging technologies, such as hydrogen, battery storage, and low-carbon steel, cement, and fertilizer.