Certain renewable energy technologies—such as large-scale wind power, solar thermal water heating, and geothermal heat pumps—are already economically competitive with traditional sources of energy, such as fossil fuels. Even when the cost of power produced by renewables is more than average utility rates, many companies can still save money by using renewables to institute “peak shaving.” In peak shaving, companies produce renewable energy during periods of peak power use, when utilities often charge higher rates. In addition, government incentives can significantly reduce the actual cost of renewable systems. These incentives include federal, state, and local tax credits; tax deductions; accelerated depreciation; loans; production incentives; rebates; and grants. Specific benefits for companies deploying renewable energy on-site can include:
Reducing energy costs or creating a hedge against possible future energy price increases.
Improving energy reliability at a company’s location (depending on system configuration).
Helping companies to be environmentally responsible and enhance their reputation through a reduction in greenhouse gas (GHG) emissions or a visible commitment to renewable energy.
Information Courtesy of World Resources Institute