Clean Energy News

May 27, 2024

Why do only 3.5% of commercial buildings have solar despite high sustainability goals?

June 8, 2022

Category: news

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Despite the high prevalence of corporate sustainability goals and rising energy costs, only 3.5% of the commercial and industrial complex currently have solar according to Wood Mackenzie. According to G&A Institute and Perillon, 92% of S&P 500 companies, 88% of public companies, and 67% of private companies have sustainability goals. Simultaneously, energy costs have been rapidly increasing. In March 2022, The Guardian found that traditional energy costs, particularly natural gas, increased by 24% in the past year and the cost of general electricity increased by 9%. A combination of increasing energy costs and the decreasing cost of renewable energy now means that œsolar power is now the cheapest electricity in history according to the International Energy Agency (IEA). Solar energy has the ability to both accomplish companies sustainability goals and reduce costs for the company and their consumers.

So why do only 3.5% of commercial and industrial buildings have solar, the cheapest source of electricity?

This is because companies lack a simple method to assess and deploy onsite clean energy projects. It is challenging because buildings are unique and can have different roof types, orientation, and service voltages that can lead to different system designs and power outputs. Commercial real estate owners are faced with varying incentive programs, electric rates, policies, costs of labor, and sun exposure based on location. All factors that can significantly affect the economics of a clean energy project. For example: Even though Boston and Lowell Massachusetts are only 30 miles apart, calculating the financial return on a project in Boston will differ from a project in Lowell.

From construction companies to commercial real estate owners, these bottlenecks cannot be eliminated due to a lack of data, tools, and resources available to them. In order to complete projects, they must ultimately internally hire a clean energy procurement team and outsource consultants, brokers, and developers. All of which are expensive and time consuming.

Companies like SolBid have recognized this problem and created solutions to allow for in-house assessment and deployment of multiple clean energy projects without the costs, time, and frustration that companies up until today have faced.



 

SolBid

Created By:Solbid Inc.