To effectively combat global warming, achieving net zero greenhouse gas emissions is essential, the path is filled with complexities and challenges.
The term "net zero" refers to balancing the amount of emitted greenhouse gases with the amount removed from the atmosphere, essentially reducing the net emissions to zero.
This balance is crucial in halting the increase of global temperatures, a necessary step to reduce the worst impacts of climate change.
Decarbonization plays a pivotal role in the goal net zero.
It involves transitioning away from carbon-based energy sources, such as coal, oil, and natural gas, towards cleaner, renewable energy like solar, wind, and hydroelectric power.
This shift not only requires significant changes in the energy sector but also in transportation, industry, and agriculture, all major contributors to global greenhouse gas emissions.
The burning of fossil fuels has increased carbon dioxide in the atmosphere, leading to global warming.
It's recognize that reducing emissions quickly enough to meet climate goals is challenging.
This has brought attention to the concept of net zero emissions, where greenhouse gas emissions are balanced with removal methods, such as reforestation and carbon capture technologies, to effectively cancel out the impact of emissions.
Achieving net zero is crucial for minimizing the worst effects of climate change, requiring global cooperation across governments, businesses, and individuals.
Strategies include investing in renewable energy, transitioning to electric transport, and improving energy efficiency.
The move towards net zero also considers fairness, aiming to protect vulnerable communities from the unequal impacts of climate change and ensuring a sustainable future for all.
Scientists recognize the challenge in reducing emissions quickly enough to align with climate goals.
This has led to a focus on achieving net zero, a state where the greenhouse gases we emit are balanced by the amount we remove from the atmosphere.
Achieving this balance is crucial for stabilizing global temperatures.
The toughest part of reaching net zero is removing emissions from the air.
Technologies like carbon capture and storage (CCS) and direct air capture (DAC) are key to this effort, but they face challenges such as high costs and scalability.
Natural solutions, such as planting trees and enhancing soil carbon absorption, also play a vital role but have their own limitations.
Moving towards net zero requires not just technological solutions but also significant changes in how we live and work.
This includes shifting to cleaner energy sources, improving energy efficiency, and adopting sustainable land use practices.
According to the Economist, there are already methods already happening and being used for removing greenhouse gasses from the atmosphere.
These include the planting of new forests and improving soil, so that he can store more carbon.
Man made technologies are also being developed that will be able to take carbon dioxide from the air and store it in the ground.
There are many innovative ideas and inventions when it comes to negative-emissions technologies, but none of them have been proven to work.
When businesses say that they aim to be net zero, it means that they have a target of drastically reducing their greenhouse gas emissions.
They want to achieve a balance between the greenhouse gasses put into the atmosphere and those taken out. Net zero is considered the benchmark standard for decarbonization.
Greenhouse gas emissions are gases like carbon dioxide, methane, and nitrous oxide that are released into the atmosphere by human activities such as burning fossil fuels, deforestation, and industrial processes.
These gases trap heat in the atmosphere and contribute to global warming and climate change.
It’s crucial that every aspect of a business is a part of the net zero transition.
Decarbonization cannot happen without the combination of both physical and digital technology to collect carbon data and act on it with certainty.
No commitment from governments has not been met yet.
According to the United Nations Climate Programme, the global greenhouse emissions will grow by nearly 14% by 2023, from 2011 through 2025, compared to 2010.
To get to net zero it must be accompanied by significant changes in government nationally determined contributions to reduce greenhouse emissions now.
It’s becoming a new trend for companies to claim that they want to become net zero.
Although many companies do not want to own up to their carbon footprint, others are taking action.
According to Accenture, 35% of the world’s largest companies are now committed to Net Zero, however, all 93% will fail to achieve their goal if they do not double the pace of emissions reduction by 2030. It’s one thing to become net zero, but it’s another to become net zero and stay profitable.
That is the main concern for most corporations and they’re still trying to find a way to make both possible.
Adapting commercial solar to a business is a smart and effective way to address climate change while also delivering tangible benefits to your bottom line.
By investing in solar energy, businesses can significantly reduce their carbon footprint and greenhouse gas emissions, demonstrating their commitment to sustainability and environmental responsibility.
But beyond the environmental benefits, there are also clear economic advantages to investing in clean energy.
Solar energy systems can help to lower your energy costs, boost your company's profitability, and increase your overall competitiveness in the marketplace.
In fact, many businesses are finding that investing in solar energy pays off in the form of lower utility bills and reduced operating expenses over time.
At the same time, by transitioning to solar energy, businesses can also position themselves as leaders in their industry and attract customers who are increasingly environmentally conscious and looking for sustainable products and services.
In this way, investing in commercial solar isn't just great for the planet - it's also great for your business.
The goal of eliminating emissions is a process that removes carbon in the atmosphere in a process called carbon elimination.
Net zero is the reduction of greenhouse gases to minus the emission from the atmosphere, oceans, forests, or the ocean.
While decarbonizing the economy does not necessarily equate to the elimination of carbon emissions, it is also possible to reduce emissions with sequestration.
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In the fight against climate change, solar energy has emerged as a key player in reducing greenhouse gas emissions and creating a sustainable future.
As businesses strive to adopt renewable energy practices, certain companies have taken the lead in investing and embracing solar energy.
By showcasing their efforts, we hope to inspire other organizations to follow suit and contribute to a greener, more sustainable workplace.
Amazon, as the world's largest corporate purchaser of renewable energy, is leading the charge in transitioning to clean energy and driving down emissions.
They have set an ambitious goal of powering their operations with 100% renewable energy by 2025, surpassing their initial target by five years.
In 2021, Amazon achieved an impressive milestone of reaching 85% renewable energy across their business and announced renewable energy projects in 18 countries.
Their efforts include the launch of solar projects in South Africa and the United Arab Emirates, as well as new projects in Singapore, Japan, Australia, and China.
Amazon has made a dedicated effort to reduce carbon emissions in its delivery fleet by introducing over 5,000 specially designed electric delivery vans throughout the United States.
In the United States, Rivian's vans, used by Amazon, have successfully transported over 150 million packages to customers.
Through their global investments in renewable energy, Amazon is actively decarbonizing their operations and serving as a shining example for sustainable practices.
META Platforms, Inc. is a prominent corporate buyer of renewable energy, actively leading the transition to clean energy in its communities by selecting projects connected to its data centers' electricity grids.
With contracts in place for over 9,000 megawatts (MW) of solar and wind energy worldwide, including more than 5,500 MW of new renewable energy already in operation, META is making a significant impact.
By integrating energy storage into the grid, they’re reducing carbon emissions and enabling the seamless integration of renewable energy.
Due to the rise of remote work and the expansion of cloud-based technologies, the demand for data centers has experienced a significant surge in recent years.
This growth means additional structures, land, cooling systems, and electricity to sustain the continuous operation of the physical buildings.
The need for data centers will only intensify with further technological advancements meaning that society is still in the early stages of this development.
Solar power systems can provide a data center with a way to offset operational costs and reduce environmental impacts.
META has added 50 MW of battery storage alongside 240 MW of solar energy near its Los Lunas data center, showcasing their commitment to sustainable practices.
With a total of 130 MW of battery energy storage deployed in New Mexico, Kentucky, and Mississippi, they remain dedicated to driving the transition to renewable energy for a greener future.
Apple has made significant strides in their Supplier Clean Energy Program, with over 40 manufacturing partners joining in the past year to support the decarbonization of Apple-related operations and the sourcing of 100% renewable electricity.
Through the program, Apple collaborates closely with suppliers, offering resources and training through their Clean Energy Academy to help them achieve their renewable energy commitments.
The remarkable progress towards their 2030 carbon neutrality goal demonstrates Apple's global efforts to drive innovation and resilience.
With a total of 13.7 gigawatts of operational renewable energy across their global supply chain, Apple and their suppliers collectively avoided 17.4 million metric tons of carbon emissions in 2021, equivalent to removing nearly 3.8 million cars from the road.
Apple also powers all corporate offices, data centers, and retail stores with approximately 1.5 gigawatts of renewable electricity across 44 countries, while investing in solar projects to address supply chain emissions.
The Supplier Clean Energy Program has enabled significant progress among U.S. manufacturing partners, with 27 U.S. suppliers achieving 100% renewable electricity.
The program has facilitated joint investments in over 650 megawatts of renewable electricity capacity, emphasizing Apple's commitment to driving scalable action and promoting a sustainable future.
Kathleen McLaughlin, Chief Sustainability Officer of Walmart Inc., expressed the company's ongoing commitment to climate action, highlighting their goal of achieving 100% renewable energy globally by 2035.
Ms. McLaughlin emphasized the importance of collective action in reducing greenhouse gas emissions and mitigating the impacts of climate change.
She commended the growing number of companies embracing solar energy and taking steps towards a renewable future.
In alignment with their sustainability objectives, Walmart also unveiled plans to power its facilities worldwide using 100% renewable energy by 2035, while targeting zero emissions across its global operations by 2040.
Providing perspective on their solar initiatives, it is noteworthy that each week over 7.2 million people, equivalent to 2.2% of the U.S. population, shop at a Walmart store with a solar installation, exemplifying the scale and impact of their renewable energy efforts.
A global leader in the solar industry has partnered with Microsoft Corp., to help the technology company in achieving carbon negativity by 2030. Microsoft wants to establish a strong supply chain for new renewable electricity capacity.
This collaboration aims to meet the demand for over 2.5 gigawatts of solar panels and related services, which can power more than 400,000 homes.
Microsoft, in its pursuit of sourcing 100% renewable energy to cover its electricity consumption by 2025, supports domestic production of green energy equipment and endorses solar solutions.
This partnership marks a significant step in diversifying the global energy supply chain, driving the development of reliable and sustainable energy networks, and reducing carbon emissions.
By working together, these companies exemplify the importance of collective efforts to deliver a cleaner, greener future and combat climate change on a global scale.
Target demonstrates its commitment to sustainability and community support by embracing renewable energy solutions and striving for net zero greenhouse gas emissions.
With a focus on energy-efficient and sustainable buildings, Target achieved its goal of equipping 500 locations with rooftop solar panels by 2020.
Now, the company aims to source 100% of its electricity from renewable sources for its U.S. stores and distribution centers.
Target stores utilizing solar power generate between 15% and 60% of their electricity from solar energy.
Additionally, through new contracts with solar projects, Target is poised to meet over 50% of its electricity needs with renewable energy sources.
These endeavors underline Target's commitment to renewable energy and their ongoing efforts to expand their portfolio of offsite solar, ensuring the realization of their sustainability goals.
Conclusion:
The top 6 companies investing in solar energy - META Platforms, Amazon, Apple, Walmart, Microsoft, and Target - are pioneers in adopting renewable energy practices.
Their commitment to solar power installations, greenhouse gas reduction goals, and carbon neutrality is not only commendable but also essential for a sustainable future.
We encourage other companies to prioritize and invest in solar energy, fostering a greener and more sustainable environment for generations to come.
Together, we can lead the way toward a brighter future.
Achieving sustainability in the workplace is a challenge for the majority of businesses.
Unlike large corporations, small and medium-sized businesses often lack the necessary resources, expertise, and financial capabilities to thoroughly evaluate the potential benefits of solar applications.
Factors such as limited budgets, lack of in-house technical knowledge, and the absence of dedicated sustainability departments make it difficult for these businesses to navigate the complexities of solar investment.
In contrast, for large companies, evaluating and implementing solar power systems is typically less of a challenge.
These huge corporations often possess the financial means to become a sustainable business, along with access to specialized teams or consultants who can analyze the potential return on investment and assess the technical requirements.
Larger organizations may have sustainability initiatives in place, with dedicated departments focused on exploring renewable energy options and managing the process effectively.
The resources and capabilities available to these companies streamline the evaluation process and facilitate the adoption of solar energy.
According to the U.S. Department of Energy, community solar is described as a solar initiative program within a specific geographical region. This setup ensures that the benefits of solar energy are distributed among various beneficiaries, including individuals, businesses, nonprofits, and other organizations. In most cases, customers benefit from energy generated by solar panels at an off-site array.
Customers of community solar projects usually sign up for, or in certain instances, have ownership in a section of the energy produced by the community solar array. They then get a credit on their electric bill for the electricity generated by their share of the community solar setup.
It offers an attractive option for individuals who cannot install solar panels on their own roofs, whether due to renting their property, financial constraints, or unsuitable roofing. Due to this community solar is growing rapidly all over the country.
Community solar projects generate electricity from sunlight, which is then sent to the utility grid through a meter. Subscribers, which can include households, businesses, or any electricity customer, pay for a portion of the electricity produced by the community solar project. This payment is usually made in the form of a monthly subscription fee.
The local utility compensates the community solar provider for the energy produced, and each subscriber receives a credit equivalent to their share of the dollar value generated by their community solar subscription. Normally, this credit is directly applied to the subscriber's monthly electric bill, effectively lowering their overall electricity expenses.
The benefits of community solar are very impactful, making it an attractive option for individuals, businesses, and communities.
Joining a shared solar project can significantly lower electricity bills by giving members credits for the solar energy produced, reducing monthly costs.
This setup protects members from rising traditional energy prices, offering more stable and often cheaper electricity without the high initial costs of private solar installations. It makes solar energy financially accessible to more people.
Community solar projects produce clean energy from the sun, reducing dependence on fossil fuels and cutting greenhouse gas emissions to combat climate change.
They also promote sustainable energy use, contribute to cleaner air and water, and support healthier communities and ecosystems.
Community solar projects make solar energy available to more people, including renters and those with unsuitable roofs for solar panels.
This model allows individuals to share in a larger solar array elsewhere, removing the barriers to owning solar panels and promoting wider use of clean energy.
It enables collective action against climate change and broadens community involvement in renewable energy efforts.
It promotes energy equity by ensuring that all members of a community, including low-income families, can access the benefits of clean energy.
This approach not only addresses the environmental impacts of traditional energy sources but also tackles social and economic disparities by making sustainable energy options more accessible to marginalized groups.
It aims to eliminate barriers to clean energy adoption, such as upfront costs and lack of information, ensuring that renewable energy solutions are available and affordable for everyone.
This commitment to energy equity empowers communities, local economies, and contributes to the overall goal of creating a more sustainable and just energy landscape.
The solar projects not only create jobs in installation, maintenance, and operations but also stimulate growth in related sectors like manufacturing of solar panels and research in renewable technologies.
This broadening of job types improves the skill set of the local workforce and the economy's ability to adapt to changes.
Additionally, solar projects draw more investment, leading to better roads, schools, and public services. This enhances the overall living standards and economic opportunities in the community.
With the installation of community solar systems, businesses are transforming into powerhouses of clean energy production, effectively becoming energy providers for their communities. This transformation isn't limited to a single industry alone; it sets an inspiring precedent for businesses across various sectors.
By investing in renewable energy, a single business can act as a catalyst for a wider shift towards sustainability. It's an innovative approach that fosters economic growth, reduces greenhouse gas emissions, and promotes the responsible use of our planet's resources.
This collaborative utilization of solar energy democratizes access to clean power. It means that not only businesses but also individuals can benefit from a local, reliable, and sustainable energy source, all while having their own stake in where and how they generate their own power.
The U.S. Environmental Protection Agency (EPA) initiated a $7 billion grant competition as part of President Biden's "Investing in America" plan. The aim is to make affordable, dependable, and clean solar energy more accessible to millions of low-income households.
The upcoming grant competition aims to allocate funds for two key purposes: expanding existing low-income solar initiatives and launching new Solar for All programs nationwide.
These Solar for All programs are designed to ensure that low-income households have fair access to residential rooftops and community solar power. They achieve this by providing financial support and incentives to communities that were previously excluded from solar investments.
These programs guarantee that low-income households can enjoy the advantages of distributed solar energy, including savings on their energy bills, enhanced energy resilience, and other benefits. Residential solar power not only reduces home energy costs but also provides families with reliable and secure electricity.
Solar for All is committed to extending these meaningful benefits to low-income and disadvantaged communities. As part of the program, it aims to secure a minimum of 20% savings on the total electricity bills for participating households.
Solar energy is a climate-friendly choice as it doesn't produce harmful greenhouse gases that contribute to climate change. Opting for a community solar project reduces your reliance on fossil fuels and supports the growth of clean renewable energy.
It's a straightforward and effective way to cut your greenhouse gas emissions in half, helping mitigate the negative effects of climate change, while also giving independence back to the average American.
Community solar plays a role in conserving vital natural resources like land and water by reducing the need for fossil fuel power plants. The processes of extracting and transporting non-renewable resources like coal, oil, and gas can harm the environment, including disrupting wildlife habitats and polluting nearby water sources.
In simple terms, choosing community solar can prevent the burning of 8,415 pounds of coal.
Traditional fossil fuel power plants release harmful pollutants such as sulfur dioxide and nitrogen oxides, which can degrade air quality and harm human health. Solar energy, in contrast, doesn't emit any pollutants, contributing to better air quality.
In fact, by opting for community solar, you can help reduce emergency room visits for respiratory issues by 6%.a
Community solar makes clean energy accessible and affordable for everyone, regardless of their housing situation or financial means. Homeowners who can't install solar panels on their roofs, like apartment dwellers or those with shaded roofs, can still benefit from solar energy.
Even businesses that want to support renewable energy but lack the resources for a large-scale installation can participate in community solar.
By choosing community solar over traditional fossil fuels, anyone can contribute to a more sustainable future for all.
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By 2050, 75% of cars on U.S. roads are expected to be electric vehicles (EVs), according to Forbes. The shift towards EVs is gaining momentum as awareness of climate change and the environmental drawbacks of gasoline vehicles grows.
People are turning to EVs as a greener alternative, aiming to lower carbon emissions and combat pollution.
However, the widespread adoption of EVs faces hurdles, notably the need for more accessible charging stations.
The scarcity of EV chargers has prompted action from the private sector, with forward-thinking business owners installing chargers on their property. This move not only serves environmental goals but also positions these businesses as leaders in sustainability, attracting eco-conscious customers.
By integrating EV charging facilities, businesses can tap into a new revenue stream, charging fees for the use of their chargers.
This initiative helps businesses stand out, offering added value to customers who own EVs and are often in search of convenient charging options.
It addresses a critical need, removing one of the significant barriers to EV adoption and facilitating a smoother transition to sustainable transportation.
Governments and municipalities are also recognizing the importance of expanding the EV charging network to support this transition. More incentives and financial help are also being given to support the installation of EV charging stations.
The expansion of EV charging infrastructure by businesses not only contributes to environmental sustainability but also enhances customer service, providing a clear competitive advantage in today's market.
As the demand for EVs continues to rise, the availability of charging options will play a crucial role in shaping the future of transportation, making it greener and more sustainable
By offering EV chargers in their parking lots, businesses also gain a competitive edge by providing a solution to a common problem faced by many customers.
EV chargers, also known as electric vehicle charging stations or EVSEs (Electric Vehicle Supply Equipment), are devices designed to recharge electric vehicles.
Available in a range of shapes, sizes, and power levels, these chargers are versatile to meet different needs.
They can be installed in residential settings for private use, in public areas like shopping centers, parks, and on streets to facilitate access for all EV owners, or at workplaces, providing employees with the convenience of charging their vehicles while they work.
The installation of EV chargers is seen as a step towards environmental sustainability, reducing reliance on fossil fuels and lowering greenhouse gas emissions.
As the adoption of electric vehicles continues to rise, the expansion of the charging infrastructure becomes increasingly important, encouraging more people to transition to electric vehicles for their transportation needs.
Simply put, an EV charger draws electricity from a 240v outlet or the connected power grid and transfers it to the electric vehicle, similar to how you charge any other device by plugging it into a wall.
When you plug your EV into a charging station, the station sends a signal to your car's onboard charger to begin the charging process. The onboard charger then converts the AC electricity from the charging station into DC electricity that can be stored in the battery.
The charging station monitors the battery's state of charge and adjusts the charging rate to ensure that the battery is charged safely and efficiently.
People often ask ‘what is the difference between type 1 and type 2 EV chargers?’
There are three main types of EV chargers: Level 1, Level 2, and Level 3.
Level 1 chargers are the slowest of the three, providing up to 4 miles of range per hour of charging. They typically plug into a standard 120-volt outlet, which means they can be used at home or in a public setting with a regular electrical outlet. Level 1 chargers are most useful for people who only need to charge their EV overnight and have a short commute. In other words, think of it as a home EV charger.
Level 2 chargers are considerably faster than Level 1 chargers, providing up to 25 miles of range per hour of charging. These chargers rely on a 240-volt electrical supply, similar to what many household appliances use. Level 2 chargers are commonly found in public locations like business parking lots, serving as the most prevalent type of charging station.
Level 3 chargers, also called DC fast chargers, offer the highest charging speed, providing up to 100 miles of range in just 30 minutes of charging. These chargers require a 480-volt electrical supply. They are primarily intended for long-distance travel and are typically located at rest stops, gas stations, and other public areas. These are typically less common than level 2 chargers throughout the U.S.
The EV Charging Action Plan, announced by the Biden Administration, aims to have 500,000 EV chargers in the US with $7.5 billion in funding. Commercial building owners have the potential to qualify for funding based on how it is managed in each state. If EV charging stations are installed along with a solar array, owners may also be eligible for financial incentives for both systems.
The integration of solar energy and electric vehicle (EV) charging in commercial and industrial buildings presents significant opportunities for sustainable and cost-effective operations.
This would work by using solar panels to generate clean electricity during the day, which can be stored in batteries or fed back into the grid. The energy can then be used to power EV charging stations.
This dual approach offers several advantages.
It allows businesses to reduce their carbon footprint by utilizing clean energy for both their own electricity needs and for charging EVs, which will result in the reduction of your scope 2 emissions.
It provides a reliable and consistent power source, which can help mitigate energy costs and diminish dependency on the grid.
By offering EV charging stations, commercial and industrial buildings can attract environmentally conscious customers, employees, and tenants who value sustainable practices.
The combination of solar energy and EV charging represents a win-win solution, promoting clean transportation while driving the transition toward a greener and more sustainable future.
New Revenue Stream
Attracts customers and Benefits Employees
Meet the demand for EV sales
EV chargers represent the future of the automotive industry. European lawmakers even want to completely ban all new future gas-powered vehicle sales by 2035. The U.S. has a similar goal, except they want to ban 50% of new sales by 2035.
However, this will not be possible unless there are more charging stations available. In contrast to states like California, where electric vehicle owners can confidently travel between cities without concern about locating a charger, states like Texas lack a sufficient infrastructure of EV charging stations.
Tesla has played a pivotal role in popularizing electric vehicles, but their chargers have been exclusive to Tesla cars and cannot be used with other EV brands. Tesla's network accounts for roughly 60% of the fast chargers in the country. To address the shortage of EV chargers, Tesla has committed to building 7,500 chargers across the United States by the end of 2024 that will be compatible with other brands of electric vehicles.
Not only that, Ford, Rivian, and GMC are partnering with Tesla to create electric vehicles that can be charged with a Tesla supercharger. These initiative aims to establish a standardized charger for electric vehicles, easing range anxiety for EV owners.
In the near future electric vehicle drivers will search for “EV chargers near me,” just like gas stations, and be able to have a comfortable amount of options around them, with a variety of businesses being able to meet that demand.
While fossil fuels will continue to be utilized for transportation, it’s important to diversify the transition to EVs with the right infrastructure, finding as many ways as possible to have easy access to chargers that source their electricity from solar and other types of clean energy.
Vena, Danny. “Rivian Joins Ford and GM on Tesla’s Supercharger Network. Will Other Automakers Follow?” The Motley Fool, 21 June 2023, https://www.fool.com/investing/2023/06/21/rivian-joins-ford-and-gmc-on-teslas-supercharger-n/.
In solar design, almost every challenge a business or facility owner faces can find a solution. If installing solar panels on the roof isn't preferred, a solar carport can be an alternative.
In cases where using the parking lot for solar is not desirable, installing solar panels on the roof is another option.
For roofs that may not be strong enough to support solar panels, waiting until the roof is repaired or exploring ground-mounted solar designs are viable solutions.
This illustrates that there are multiple ways for a business to incorporate solar energy into their facility.
Ground-mount solar is usually the best option for businesses that don’t have a suitable roof to install a solar project or for those that don’t have enough rooftop space on their facility.
With a ground mount structure, the panels are secured to a rack structure that is connected to the ground with steel beams or another type of metal post.
These types of installations are usually installed in an open area or as a carport over a parking lot, which is a very popular option for businesses
Solar carports work the same as regular ground mount solar, however, carports are usually taller because they provide shaded parking for vehicles. Although they’re slightly more expensive than a traditional structure, they offer many significant benefits.
A huge part of solar carport's popularity is the fact that EV chargers can be installed with the system and this means that the owner of the business/facility can have another stream of income being brought in.
Not only that, the EV chargers will attract eco-friendly customers, investors, and employees. Since the United States has a goal of banning 50% of any gas-powered car sales by 2035, EV chargers are going to be extremely in demand.
A solar system that not only generates electricity, but also provides shade and EV chargers, is a win-win situation for the company, customers, employees, and investors.
For a facility that has an abundant amount of roof space, a rooftop solar installation is the best option. It’s the most common type of installation for commercial buildings such as warehouses and cold storage facilities.
This type of installation utilizes any unused roof space and it is usually a lower price than a ground-mounted system.
Before installing rooftop solar, the roof has to be inspected to make sure that it is suitable for the installation. If the roof of the building is damaged or aged, it may be necessary to replace it before the installation process because panels have a 25 to 30-year lifespan and it’s important that the roof can support the weight of the panels.
Anne Shirley Lewis, ESA Account Executive, offers a detailed analysis of the factors influencing the decision between ground-mounted and rooftop solar installations.
Anne Shirley Lewis explains, "The cost considerations between a ground-mounted and a rooftop solar project are often comparable. The decision for a customer to opt for one over the other depends on several factors."
- "A business may lack sufficient rooftop space but possess adjacent land, which can be effectively utilized to maximize solar production capabilities. Conversely, in scenarios where a business only has rooftop space available, this becomes the natural choice for solar installation."
- "In situations where both rooftop and ground space are available, a decision might be influenced by the potential value of the land for future expansions, such as constructing additional facilities that contribute to the core business functions."
- "A ground-mounted system might be preferable if the rooftop is occupied with essential operational equipment. This is common in manufacturing facilities where rooftop space is needed for exhaust systems or other necessary installations."*
- "Ground-mounted systems are particularly advantageous in water retention zones, allowing for the installation to adapt to the rise and fall of water levels. An example of this is our project at the Dodge Chrysler Jeep of Winter Haven."
- "For businesses aiming to maximize their solar energy output and further reduce carbon emissions, a combination of both rooftop and ground-mounted systems can be an optimal solution."
Conclusion
In summary, solar energy presents a range of flexible solutions for businesses, catering to different needs and spaces. Whether it's maximizing unused land with ground-mount systems, utilizing rooftop space, or combining functionality with solar carports, each option offers its unique advantages.
Anne Shirley Lewis emphasizes the importance of considering space, future expansion plans, and operational requirements in choosing the right solar solution.
This adaptability of solar technology aligns with the evolving environmental and economic goals of businesses, making it an increasingly attractive option.
As we advance towards a sustainable future, solar energy is not just an eco-friendly choice but a strategic business decision, leading to cost savings, environmental responsibility, and a stronger brand image.
Is your business ready to join this group of elite pioneers? Connect with us and discover your path to clean energy.
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The Inflation Reduction Act (IRA) stands as a landmark opportunity for healthcare organizations seeking financial leverage and environmental leadership.
This legislation incentivizes emission reductions through tax credits and direct payments, opening doors for healthcare institutions to produce clean renewable energy, reduce greenhouse gas emissions, secure financial benefits, and enhance community impact.
Now is the time to leverage this opportunity and take advantage of everything this new financial incentive offers your organization.
Amidst escalating energy costs and the critical challenge of climate change, the IRA emerges as a strategic ally for healthcare providers. With a targeted goal to curtail 3.8 billion tons of carbon dioxide emissions by 2035, this bill is both a response and a proactive measure.
By incentivizing emission reductions through tax credits; municipalities, disadvantaged communities, large corporations, and not-for-profit entities have the opportunity to produce clean renewable energy, increase climate resiliency, and update existing infrastructure.
The IRA aims to achieve a 40% nationwide emissions reduction with the largest climate and clean energy investment in U.S. History (an estimated $369 billion), aiming to decarbonize sectors of the economy, and promoting restoration efforts in the United States.
Healthcare organizations, you have a pivotal opportunity to revitalize your energy strategy and reinforce your commitment to environmental, social, and governance (ESG) principles. The incentives offered by the IRA are a gateway to both advancing your sustainability goals and benefitting financially by securing funding to lower greenhouse gas emissions. It includes tax credits and direct pay options for projects.
Credit Monetization
Under the Inflation Reduction Act, tax-exempt entities such as hospitals and clinics can receive direct payments that are equivalent to the value of specific tax credits. This direct payment option is only available for projects that were initiated after December 21, 2022. The election to receive direct payment must be made by the due date of the tax return for the year the election was made.
For production tax credits, the direct payment election must be made within a 10-year period starting from the date the qualifying facility is put into service.
It’s important to note that tax-exempt entities that are eligible for direct payment cannot transfer tax credits.
Credits applicable to healthcare institutions
Alternative fuel refueling property credit
Healthcare organizations can take full advantage of this credit by installing alternative fuel refueling stations, such as EV chargers. Under the IRA, eligible properties can receive up to $100,000 in alternative fuel fueling property credit. It’s calculated per unit rather than per location.
Eligible properties must be located in qualified census tracts which include low-income communities or areas that are located outside of urbanized areas. The IRA offers a base credit of 6% of the qualified property’s cost.
Organizations can earn an additional 30% bonus tax credit by ensuring that all workers involved in the project, including apprentices, laborers, mechanics, contractors, and subcontractors, are paid the standard rates for similar job’s in the project’s location.
Clean Electricity Production Tax Credit
Traditionally, healthcare organizations have relied on power purchase agreements (PPAs) for clean energy investments, allowing for-profit entities to take advantage of the available tax credits and pass those savings to the healthcare provider.
However, the IRA’s direct payment has the potential to make self-funded and owned clean energy projects more attractive for not-for-profit entities starting in 2025.
The production tax credit applies to electricity generated from these eligible clean energy sources:
Healthcare organizations can claim this credit if they commission a qualified clean energy production facility after December 31, 2024.
Facilities that are located in an Energy Community or satisfy the requirement that all iron and steel products used for the project are from the United States are eligible to receive a 10% bonus credit. If eligible for both incentives, healthcare organizations can combine the percentage increases.
Clean Electricity Investment Tax Credit
The clean electricity investment credit is a tax credit for organizations that invest in qualified clean electricity facilities and energy storage technologies. The credit is calculated as a percentage of the qualified investment, with a base credit of 6% and a bonus credit of 30% for projects that meet wage and apprenticeship requirements.
This means that healthcare organizations could potentially receive a total credit of 36% of their investment.
Healthcare institutions can capitalize on this credit by investing in qualified clean electricity facilities and energy storage projects that begin operation after December 31, 2024.
Organizations that invest in solar facilities that are part of a low-income residential building project or a low-income economic benefit project are eligible for a 20% bonus credit.
Commercial Clean Vehicles Credit
Healthcare organizations that introduce commercial clean vehicles into service between January 1, 2023, and December 31, 2032, will qualify for a clean vehicle credit.
This credit is 15% of the vehicle's basis (30% for vehicles not powered by gasoline or diesel internal combustion engines) or the vehicle's incremental cost (the difference between the purchase price of the clean vehicle and a comparable gasoline - or diesel-powered vehicle).
Non-profit IRA Benefits
The Inflation Reduction Act offers a range of financial incentives to encourage non-profits to adopt sustainable energy. If the project is in the U.S. or its territories and uses new or almost-new equipment, you can get a 30% tax credit right off the bat.
Projects in lower-income areas get an extra 10% credit, and if you use U.S.-made equipment, that's another 10%.
Installing alternative fuel stations like EV chargers can net a 30% credit, up to $100,000, especially if they're in areas that aren't in big cities or where incomes are lower.
There's also a 10-20% credit available for projects that help low-income communities, with a preference for those run by local groups or non-profits focused on social goals.
These incentives make it more affordable for non-profits to go green and help build stronger, more sustainable communities.
Conclusion
By leveraging the IRA's offerings, healthcare institutions can stride towards a brighter, more sustainable future with confidence and fiscal prudence. The Inflation Reduction Act is more than just legislation – it's a call to action for healthcare institutions.
It presents a unique opportunity for healthcare organizations to make a positive impact on the environment, secure financial benefits, and strengthen their communities. By taking informed steps and leveraging the available resources, healthcare institutions can become leaders in a sustainable future.
Sources
https://www.whitehouse.gov/wp-content/uploads/2022/12/Inflation
https://www.commonwealthfund.org/blog/2022/how-inflation-reductio
https://www.irs.gov/credits-deductions/commercial-clean-vehicle-credit
https://www.epa.gov/green-power-markets/summary-inflation-reduction
https://www.irs.gov/credits-deductions/alternative-fuel-vehicle-refuelin
https://www.mckinsey.com/industries/public-sector/our-insights
Every business owner has basic questions about why they should invest in commercial solar energy. Here are some of the most common commercial solar faqs.
The word photovoltaic comes from the Greek words: photo,’phos,’ meaning light, and ‘volt’, which refers to electricity. Photovoltaic (PV) means light-electricity, which perfectly describes the process of converting light into electricity with solar photovoltaic cells.
Solar cells are constructed from materials capable of absorbing energy from the sun, specifically in the form of photons, and transforming these photons into electricity, essentially turning photons into electrons. When sunlight hits a solar cell, the photovoltaic (PV) material within the panel absorbs this energy. This absorption generates electrical charges that move and result in the flow of electricity through the panels.
Adopting commercial solar energy can lead to a decrease in operational costs and provide several financial benefits, including tax credits and a notable return on investment.
The Solar Energy Industries Association has documented that businesses utilizing commercial solar systems generally observe a 50% reduction in their electricity expenses, with some cases reporting decreases of 80-90%.
The installation of solar energy systems has been associated with an average increase in property value of about 10%.
These findings highlight the practical advantages of integrating solar energy into business operations for business owners considering such investments for long-term energy solutions.
Check out our blog post: “How does solar benefit commercial buildings?” to learn more about why your business should invest in solar energy!
Switching to commercial solar systems is increasingly recognized as an effective strategy for businesses to minimize their environmental impact. This shift represents a commitment to sustainable energy practices. Initially, the process entails a consultation with a team specializing in solar panel installation.
During this consultation, the team evaluates the company's energy needs and devises a tailor-made system to address those requirements. Following the approval of the system design, the installation phase begins. This typically includes mounting panels to the commercial building's rooftop and integrating them with the existing electrical infrastructure. Many businesses witness a return on their investment in solar technology within a few years following installation.
Investing in solar energy not only helps reduce dependence on fossil fuels but also cuts down on carbon emissions. This transition not only serves environmental purposes but also grants businesses greater control over their energy usage and expenses.
Many firms specializing in commercial solar installations provide continuous monitoring and maintenance services. These services ensure the solar system maintains its efficiency and energy production capabilities over time.
Given the pressing challenges posed by climate change, the decision to embrace solar energy reflects a business's dedication to sustainability.
Clean energy offers numerous financial advantages.
One of the most immediate benefits of solar energy is the significant reduction in electricity bills. By generating your own electricity, you rely less on the grid, which directly translates to lower monthly energy costs. Over time, the savings can cover the initial investment in solar panel installation.
Properties equipped with solar energy systems often see an increase in value. Studies have shown that commercial properties with solar installations sell at a premium compared to those without. This is due to the prospective savings on energy bills and the growing consumer preference for sustainable energy solutions.
Governments and local authorities frequently offer incentives, rebates, and tax credits to encourage the adoption of solar energy. These financial incentives can significantly offset the installation costs and accelerate the return on investment. Business owners and homeowners should explore available local, state, and federal incentives.
Renewable energy can protect against the unpredictable rise of energy prices. By generating your own power, you become less affected by the fluctuations in utility rates, ensuring more predictable expenses. This is particularly advantageous for businesses that require budget stability.
Solar energy systems are renowned for their durability and low maintenance requirements. After the initial installation, the ongoing costs to maintain solar panels are minimal, ensuring that the savings from reduced energy bills are not offset by high upkeep expenses.
Solar energy is a renewable source of power and it has a vital role in reducing greenhouse gas emissions and mitigation of climate change. This is crucial to protecting humans, wildlife, and our ecosystems. Solar energy improves air quality and reduces water use from energy production. It’s a win-win situation for everyone!
Solar panels are capable of generating electricity in the winter months as efficiently as they do in the summer. It's important to note that if the panels are obscured by thick layers of snow, their ability to produce energy will be compromised. However, light layers of snow will not be a hindrance, and because the solar panels are installed with a vertical slant, the snow will easily melt and slide right off.
Installation experts often suggest incorporating features such as snow guards to protect the panels from being overwhelmed by ice and snow. Even in conditions of heavy rain or thick cloud cover, sunlight continues to reach the panels, enabling them to generate electricity.
Additionally, rain serves a beneficial role in maintaining the efficiency of solar panels by cleaning off any accumulated dust or dirt.
When properly installed, solar panels are built to endure up to 30 years, requiring little to no maintenance.
The maintenance demands for solar panels are minimal. A bi-annual cleaning is generally sufficient, provided the panels are not exposed to severe weather conditions.
Professional cleaning services for solar panels can be obtained for a few hundred dollars, ensuring they remain in optimal condition.
The likelihood of needing repairs or replacements for your solar panels is low, so there's minimal concern regarding their upkeep.
Cold storage industry leaders know that energy consumption is one of the top operating costs for any facility.
The constant, 24/7 round-the-clock need for electricity is the core issue here. As energy costs continue to rise, businesses have to increase prices, making it difficult to stay a top competitor in this field.
If facility owners are to thrive in this industry, they must pay attention to the trends that are happening right in front of them.
There are several businesses meeting the demand for sustainable supply chain solutions, investing in sustainable technologies, and embracing ESG initiatives to stand out.
When COVID-19 pandemic hit, there was a surge in online grocery sales, medicines, and vaccines that needed to be properly stored. This caused a shift in how many industries like cold storage do business.
Cold storage demand skyrocketed in 2020 and it continues to rise to this day. In 2022, frozen food sales had a 34% increase since 2019, at $72.2 billion, and has also grown at a CAGR of 2.3% over the past five years.
The cold storage industry plays a big role in the supply chain, mainly in ensuing perishable goods maintain a consistent, controlled temperature and quality throughout their journey from production to delivery.
Frozen good freshness requires planning, investments in specialized infrastructure, and a commitment to maintaining these strict temperature controls.
The increasing demand for cold storage necessitates the development of a strong cold supply chain that is capable of adapting to any changes, while also meeting the consumer's needs.
Aged and traditional supply chain models need a makeover that integrates new technologies and strategies.
One company's scope 2 emissions can significantly contribute to another company's scope 1 and 3 emissions along the supply chain. Companies with high scope 2 emissions are taking steps to reduce their environmental impact to stay competitive in the market as more companies demand cutting scope 2 or 3 emissions.
The top cold chain logistics companies in the United States are Americold Logistics, Lineage Logistics, and United States Cold Storage (USCS).
These companies have a commitment to practicing ESG and are strategically making investments toward their future, which is evident as to why they are considered to be industry giants.
“Our comprehensive environmental, social, and governance (ESG) strategy focuses on three areas: promoting energy excellence through innovation and new technology adoption, investing in our associates, and giving back to our communities.” - George Chappelle, Chief Executive Officer of Americold.
According to their 2022 ESG Report, they have spent more than $3.6 million in sustainability investments across their portfolio of temperature-controlled facilities.
Focusing on the environmental section of their ESG objectives, here is what Americold Logistics is implementing in its strategy:
Greenhouse Gas (GHC) Emissions
Renewable Energy
Waste Reduction
Lineage Logistics proudly wears its commitment to renewable energy as a part of it’s ESG strategy.
“Solar energy resources help power Lineage facilities in eight different countries, and expanding access to solar power resources throughout the network is a key element of our efforts to reach our goal of net-zero emissions by 2040. Its ability to provide power for large facilities and to handle substantial electric loads pair well with our business infrastructure and energy needs. At some of our sites, solar panels are capable of producing two to three times the entire building’s electricity load at peak afternoon power production times.”- Lineage Logistics 2022 Sustainability Report
United States Cold Storage may be ranked #3, but not by far! They take their sustainability and ESG efforts very seriously, and it shows in their ranking.
“United States Cold Storage is committed to the environment and its well-being. Sustainable development is achieved through state-of-the-art warehouse design and construction, the use of eco-friendly refrigeration technology, and through utilization of energy efficient materials and technologies. We’ll continue to responsibly manage resources to meet the evolving requirements of the communities we serve – our customers, our employees, and our industry.” - Mike Lynch, VP, Engineering
The three competitors mentioned above are setting the bar for other cold storage facilities. They’re enhancing their businesses by embracing their ESG initiatives and implementing sustainable solutions to improve their facilities.
The actions of these companies are catching the eyes of investors, who are seeking opportunities to invest in companies that prioritize ESG factors.
Attracting investors is crucial for businesses to secure funding for growth, gain expertise, enhance credibility, build networks, and validate a business model.
It strengthens the prospect of securing future funding, facilitates strategic collaborations, and provides access to a pool of qualified talent and resources that support business growth.
Americold Logistics, Lineage Logistics, and United States Cold Storage, are leading the way by investing in renewable energy, reducing greenhouse gas emissions, and implementing energy-efficient technologies.
Their commitment to sustainability is setting the bar for other cold storage facilities and demonstrating that it is possible to operate a profitable business while also being environmentally responsible.
Is your business ready to join this group of elite pioneers? Connect with us and discover your path to clean energy.
Sources
Businesses across industries are embracing the benefits of commercial solar energy. Roftop solar leasing, in particular, is gaining significant traction as a viable option for investing in renewable energy.
This model offers businesses a cost-effective and sustainble path towards achieving esg goals, reducing operational costs, and enhancing brand image.
Rooftop solar installation involves mounting solar panels on the roof of a building to capture sunlight and convert it into electricity. It’s a popular choice for commercial buildings because it gives them the opportunity to optimize unused roof space.
Solar investments are more common than ever. With the upbringing of ESG the leading topic of conversation in the commercial space today, business owners look to solar as a way to not only aid them in reaching the carbon reduction goals but also add another revenue stream.
Business owners have the option to choose from three different pathways when pursuing a solar investment - direct ownership, third-party ownership (leasing their rooftop space), and community solar.
Third-party ownership is a smart financial move for property owners because it gives them the flexibility to skip paying the upfront investment when choosing to install on-site. Instead, the lease can be a big one-time payment or a smaller annual payment over the lease period.
There are no upfront costs as the company covers all expenses, allowing you to have solar panels without any initial payment. The leasing company takes care of maintenance, including repairs and upkeep during your use of the panels.
Unlike a loan, you're not required to gradually repay the cost over time, and if your energy savings exceed your monthly expenses, you end up saving money without a specific payback period.
The upfront cost of purchase and installation of solar panels can be substantial, which could discourage individuals because of financial limitations. Maintenance also becomes your responsibility, which can add up over time.
As technology improves, your panels might become outdated, and you could miss out on efficiency improvements. Administrative tasks like permits and paperwork also fall on your shoulders.
While solar panels can enhance property value, they might not offer a full return on investment if you sell before recouping costs. Securing financing could also pose a challenge for most.
When contemplating solar panel installation for commercial buildings, several critical considerations come into play.
Ensuring the structural integrity of the building's roof is a foremost concern. If the roof is aged or damaged, it may be necessary to replace it before installing solar panels because solar panels have a lifespan of 25 to 30 years. It’s essential that your roof can support the weight of the panels for the duration of their lifespan.
Also, think about how the building looks – if it's designed in a special way or has a strange shape, it might affect where the solar panels can go.
A Solar Panel Lease Agreement includes common terms. At the start, it states the monthly payment and lease duration. It might also cover extra costs, such as an upfront payment or early termination fees.
Next, the roles of both parties are detailed. The company handles the installation and maintenance of the solar panels while ensuring property access and panel protection fall under your responsibility.
Finally, the agreement could mention the chance to transfer the lease to a new owner during property sales. It might also discuss buying the solar panels after the lease term ends.
Here are some questions that commercial business owners ask before leasing their rooftop space.
If installed correctly, a rooftop solar installation will not negatively impact a building. The main concerns that building owners have about PV systems are the potential impact PV may have on roof integrity such as business operations, building permits, and roof warranties; however, all of these concerns can be minimized or eliminated.
No, a reputable solar installer will take into account the roof’s drainage system and ensure that the installation will not be negatively impacted. It is important to discuss any concerns about roof drainage with your solar installer before the installation process begins.
There are two primary mounting methods for PV systems on the roof of a commercial building are ballasted racking and attached racking. Ballasted racking uses heavy objects, typically concrete blocks, to secure the solar system to a flat roof.
For the attached racking solar system, the racking is mounted to the roof while the panels are securely fastened to the rack.
No, your solar installer should be aware of the fire codes that need to be followed, according to the state that the building is located. Therefore, the installers will design a solar system according to those codes to ensure that there is no fire risk and that if needed, a fire can properly be extinguished without issue.
Who is responsible for the code compliance of my roof?
The solar installer will be responsible for designing and installing the PV system in line with applicable building codes under a third-party ownership agreement. The solar installer will generally collaborate with the original roof manufacturer for a specific building to ensure that the PV system is installed in a way that does not void the roof's warranty.
After the PV system is installed, the roof manufacturer will verify it to ensure that it fulfills the approved design and that the roof guarantee is still valid. Any roof damage sustained during installation is usually covered by the solar installer's workmanship warranty. Prior to installation, building owners should confirm that a solar contractor gives a proper workmanship warranty.
Businesses that choose to install commercial solar panels on their commercial and industrial buildings are actively incorporating solar energy into their energy sources.
This decision not only cuts down on greenhouse gas emissions but also aids the shift towards a greener economy with fewer carbon emissions. Installing solar panels on structures like self-storage facilities, hospitals, auto dealerships, and cold storage facilities not only saves money but also plays a role in fostering a cleaner environment.
Ready to empower your business with renewable energy?
Contact ESA today to explore the best solar leasing options tailored to your business.
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Intro
The lasting effects of the COVID-19 pandemic have created a list of challenges and opportunities for the cold storage industry. As consumer demand for frozen food has risen, the need for cold storage spaces has skyrocketed. This has placed immense pressure on facilities to buckle down and figure out strategies to keep their businesses competitive and in the market.
However, despite the challenges, this has generated a handful of opportunities for investors and business owners. New technologies are going to play an important role in the industry, which means businesses are going to want to invest in their facilities.
The future of the cold storage industry is uncertain, but if businesses continue to upgrade and follow the industry's trends, then there should be no problem keeping up.
Challenges
The cold storage industry is facing a number of challenges, including rising inflation, labor shortages, and the rising cost of materials. These challenges are having a negative impact on the industry, and some cold storage facilities are being forced to raise prices or cut costs.
Rising Inflation
The cost of energy, labor, and transportation is all increasing, which is forcing cold storage businesses to raise prices for their customers. This can make it difficult for them to compete with other food supply chain participants, such as grocery stores and restaurants.
Labor Shortages
The work is demanding and the wages are low, which makes it difficult to attract and retain workers. This is leading to a decrease in the quality of service, as cold storage businesses are struggling to keep up with demand.
Cost of Materials
The cost of insulation, refrigeration equipment, and warehouse racking has increased significantly in recent years, which is putting pressure on cold storage margins. Businesses are finding it more difficult to operate profitably.
Opportunities
The cold storage industry is experiencing a surge in demand due to several factors, including the growing popularity of frozen food, the expansion of e-commerce grocery shopping, and technological advancements.
Since the pandemic, there has been an increase in consumer demand for frozen food, driving the need for more cold storage space. Frozen food offers convenience, reduced food waste, and extended shelf life, making it an appealing choice for many consumers. This trend is expected to continue as consumers become more accustomed to the benefits of frozen food.
The growth of e-commerce grocery shopping has also created new opportunities for the cold storage industry. Online grocery retailers rely on cold storage facilities to store and distribute their perishable products and maintain the integrity of these items during the delivery process. As e-commerce grocery shopping continues to gain popularity, the demand for cold storage space from online retailers is expected to rise.
Cold storage facilities are increasingly adopting new technologies, such as automated racking systems, renewable energy, and data analytics software, to improve efficiency and reduce costs. This is making the industry more competitive and attractive to potential investors.
Automation
The cold storage industry is undergoing a significant transformation as automation begins to become a popular trend in refrigerated warehouse systems. Automated guided vehicles (AGVs), automated storage/retrieval systems (AS/RS), and other robotic technologies are assisting operations, safety, and efficiency in facilities.
By automating repetitive and physically demanding tasks, such as moving goods in and out of storage, these technologies are freeing up human workers for higher-value activities, such as quality control and customer service.
AGVs efficiently transport pallets between different warehouse zones, while AS/RS systems retrieve and store goods from high racks.
Automated systems enable cold storage facilities to meet the demands of online retailers and other businesses that require quick order fulfillment.
As the demand for advanced cold storage technology continues to grow, expect to witness greater automation technologies introduced to the cold storage industry.
Enhancing energy efficiency and maintaining cold chain integrity are crucial concerns for the cold storage industry.
One effective approach to achieving both objectives is the implementation of a drive-through dock design. This design enables vehicles used for storage to reverse fully into the loading dock before opening the doors. This prevents the escape of cold air and the compression of warm air, which leads to reduced energy costs.
Cooler and freezer doors also contribute to energy efficiency. High-speed doors minimize the time doors remain open, reducing air exchange and conserving energy.
LED lighting is an excellent choice for cold storage facilities due to its efficiency and longevity. These lights reduce energy consumption up to 75%. They also last up to 75,000 hours, or around 15 years, and can operate effectively in freezing temperatures.
These are just a few ideas of strategies and technologies that facilities are using to be more mindful of energy efficiency.
Cold storage facilities are one of the largest energy consumers in the industrial sector because of the continuous operation of refrigeration systems. Solar can significantly offset or even eliminate the need for grid-supplied electricity, leading to savings on energy bills.
Solar energy also aligns with the cold storage industry's commitment to sustainability.
It enables the energy independence of cold storage facilities. Reliance on the grid for electricity can leave facilities vulnerable to power outages and disruptions. Solar panels provide a reliable source of power, making sure that operations can continue uninterrupted, even during grid disruptions. This energy independence is crucial for maintaining product integrity and preventing costly losses.
Clean energy is bound to play a huge role in the future of the cold storage industry. Its ability to reduce energy costs, promote sustainability, and enhance energy independence makes it a strategic solution for cold storage facilities of all sizes.
As renewable energy continues to advance and become more cost-effective, the investment of solar in the cold storage industry is expected to grow, paving the way for a more sustainable future for the industry.
Sport Subaru, committed to sustainability and reducing its carbon footprint, partnered with ESA to install a 395-kW rooftop solar project at their new Orlando dealership.
This pilot project for future electrification of all Don Mealey Group Auto Dealerships aims to reduce annual electricity costs by 60% with a payback period of 6 years, decrease greenhouse gas emissions, power EV charging stations, and align with Sport Subaru's sustainability goals.
Sources
Your future deserves to be powered by clean energy. Connect with our team and we will guide you through the clearest and most effective path to solar.
