How businesses can profit from renewable energy....

Today's post: Wednesday, 7-29-2009

We need an 80% reduction in fossil fuel use by 2050 to avoid the worst global warming effects. And, practically speaking, we need to also double our electricity generation and double the useful work done per unit of electricity & other energy sources as well during that same time to have a decent economy.

At some point, because of the cost of renewable energy gradually dropping from new technologies and economies of scale and the cost for fossil fuels continuing eventually to go up for several reasons, those companies that get most of their energy from renewable sources will be more profitable and have a more stable and reliable energy supply than those that don’t.

Even better, there are a set of things that companies can do to begin to install and profit from renewable energy now.

Right now renewable energy and electricity still costs more than it does when you get it from fossil fuels.

But, because most companies have so many ways to save energy or become more energy efficient or both and because these actions tend to produce more savings each year after they are put into practice than they cost initially, companies can do those things AND add more renewable energy and still wind up with annual savings NOW.

Adobe in San Jose decided to simply do everything in its HQ building that current technology allowed to save energy. They did have to invest $1,000,000; & some of the energy saving methods were a bit less pleasant than what they had before. But the ANNUAL savings on their energy bill were also $1,000,000!

That’s a 100% per year return on their investment.

So, if a company does similar things, it can then also afford to add solar cells now out of those savings without having to increase their energy costs.

Then, when fossil fuels go up in price while their solar installation is already paid for and the sun is powering it, compared to their competitors who have not done these things who will have soaring energy bills, they will be far ahead.

Identify what your energy uses are now. Then look for ways to build in systems and new procedures that prevent energy from being used that is simply wasted now; find more energy efficient systems for all the useful ways that you use energy that you can and install them.

Watch for new technologies and new products to do this.

For example, most businesses tend to use fluorescent lights now instead of incandescent lights which already cuts energy use about 4 to one. But when they become available -- which is just barely beginning to happen, LED lights both use about a third of the electricity as fluorescent lights and have to be replaced far less often which also saves money.

A second major way to save money in facilities where air conditioning is used is to do more things to prevent the heat of the summer from getting into the building. It’s pretty straight forward. If only half as much heat gets in as used to get in, you will only need half as much air conditioning. In some cases painting the roof or south side of the building white or putting solar cells there which have a bit of insulation in their backing will do this. In some cases there will be a space under the roof as there is with houses with peaked roofs which can be vented instead of becoming a solar heater to keep heat out of the building. And well designed and placed window awnings can help keep summer heat out of the building as well.

Also, if you also get some of your cooling done early in the morning, a well insulated building will then still be cool in the afternoon. And that cooling will both be more efficient with the cooler outside temperatures of the early morning AND the electricity you use from the grid will cost less by using it at this nonpeak time.

Then if you also get your electricity from solar cells on the roof of your facility AND solar cells on a canopy over the company parking lot if it’s out in the open instead of under the building, all or much of the electricity you use during the times of peak demand in the afternoon when grid electricity costs the most will come from your own facility instead.

(That kind of canopy over the parking lot that’s covered with solar panels also has two other benefits to your employees. During rainy weather they and their important papers and electronic equipment will get rained on a lot less while getting into and our of their cars. And, in hot and sunny weather they will be more comfortable and have lower fuel bill for their cars which will then need less use of their air conditioners.)

In many businesses, they can get more solar panels on a canopy or set of canopies over their parking lot than they can on the roof of their facility. So, by doing both, they can provide a much larger percentage of their electricity themselves from their solar cells than they would have by just putting them on the roof.

For shopping centers and many larger businesses, such canopies can make a really BIG difference.

Lastly, there are now many programs at local colleges and universities that are training students to help businesses find and implement these kinds of changes including some that use MBA students. And, increasingly, there are businesses now that do this. Some simply charge a fee. Others will do it free or waive the fee if you get a bid for their particular energy saving service or buy it.

The bottom line is that most businesses can do more now than they realize or are doing.

And those that begin to do it now, will gain an edge as fossil fuels go up in price and/or become more unreliable in their availability.