Running a business comes with many expenses, one of the largest often being the monthly electric bill. As business owners, we're always looking for ways to reduce costs and maximize profits. An impactful way to accomplish this is by switching to alternative energy sources to power your business and reduce your reliance on the electric grid.
Why Consider Alternative Energy?
There are several compelling reasons for a business to consider utilizing alternative energy sources:
Reduce Electric Bill Costs
The main incentive is reducing the cost of your business's traditional electric bill each month. Alternative energy sources such as solar, wind, geothermal, and fuel cell systems allow you to generate a portion or all of the electricity needed to power your business directly onsite. Every kilowatt hour produced onsite through alternative energy is a kilowatt hour that doesn't need to be purchased at retail rates from the electric utility - saving you significant money over time.
Hedge Against Rising Energy Prices
Electricity prices fluctuate - sometimes dramatically - based on supply and demand. Fossil fuel prices can spike, driving up the retail cost of electricity. By tapping into alternative energy sources directly, you can lock in much of your energy costs for years to come and protect your business from volatile retail electricity prices.
Increase Sustainability
Many small businesses want to operate in an environmentally sustainable manner. Utilizing clean alternative energy sources such as solar, wind, and geothermal helps minimize your business's carbon footprint. This allows you to run a greener business that helps protect the planet.
Enhance Brand Image
Adding rooftop solar panels, a wind turbine, or other visible alternative energy systems enhances your brand image. It shows customers your commitment to sustainability and lowers your business's environmental impact. This can boost your reputation and differentiate you from competitors.
Evaluating Your Business's Alternative Energy Options
Several alternative energy technologies are well-suited for small business applications:
Solar PV Systems
Solar photovoltaic (PV) systems convert sunlight directly into electricity through solar panels. This electricity is used to power your appliances, lighting, and equipment directly. Solar PV panels can be mounted on your roof, ground, or other sunny location on your property. They work by transferring the solar energy hitting the panels into usable AC power.
Adding storage batteries allows excess solar energy to be stored for use at night. Grid-tied solar PV systems send unused electricity back to the grid for credit. This provides a hedge against utility rate increases.
Wind Turbines
Small wind turbines utilize local wind resources to generate clean electricity. Most small wind turbines are mounted on tall towers and have rotors between 8-25 feet diameter. The spinning blades turn a generator to produce electricity.
Wind turbines work best in open areas with consistent wind speeds of at least 12 mph. Small turbines can potentially meet 20-60% of your business's electric needs, reducing grid reliance. Excess generation is sent back to the grid per net metering policies.
Geothermal Heating/Cooling
Geothermal heating and cooling systems leverage the constant temperatures just below the earth's surface to provide HVAC services. In winter, the systems pull warmth from the ground to heat your business. In summer, excess heat is rejected back into the ground for cooling.
Geothermal systems use much less electricity than conventional HVAC systems. Installing geothermal units to meet your business's heating and cooling needs can dramatically reduce electricity consumption. Geothermal works virtually anywhere and provides reliable, efficient HVAC year-round.
Fuel Cells
Fuel cells produce electricity through an electrochemical reaction between hydrogen and oxygen. There are no moving parts - just the direct generation of electricity from hydrogen. Fuel cell systems are very quiet, reliable, and modular in nature.
Small businesses can utilize fuel cells powered by natural gas pipelines. Excess heat from the electricity generation process is captured and used onsite. Fuel cells can potentially generate most or all of your business's electrical and thermal needs efficiently onsite.
Microturbines
Microturbines are small electricity generators that utilize high-speed turbines and internal combustion engines to create power. They run on a variety of fuels, including natural gas, biogas, diesel, and hydrogen.
Microturbines produce 25-500 kilowatts of electricity - ideal for smaller businesses. They can be located outdoors or indoors close to your electrical distribution. Microturbines recover waste heat for additional efficiency gains.
Key Steps to Utilize Alternative Energy
If you decide alternative energy generation makes sense for your small business, here are some key steps to take:
Calculate Your Usage Needs
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Analyze your monthly electricity consumption patterns. Review utility bills to determine your annual kilowatt hour needs. Understanding your exact usage will help properly size an alternative energy system.
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Factor in expected business growth and expanded electricity demand. A right-sized system will offer optimal generation without over-producing unusable excess energy.
Determine the Best Technologies
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Evaluate which alternative energy technologies best match your business's properties and needs. Assess factors like available wind/sun patterns, property acreage, roof space, utility costs, local incentives, and technology costs.
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Consulting an alternative energy specialist is wise to help select the optimal systems for your specific situation. The right technology depends on your business application, location, budget, and goals.
Research Permits and Policies
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Contact your local jurisdiction to learn about permits, codes, ordinances, and installation policies regarding alternative energy projects. Some municipalities have restrictions on wind turbines, PV panel placements, geothermal wells, etc.
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Understand your electric utility's net metering policy and any interconnection requirements for tying your system to the grid. This enables proper system design and sell back of unused power.
Analyze Costs and Incentives
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Crunch the numbers on proposed alternative energy systems - factoring in all equipment, installation and maintenance costs. Compare to potential electric bill savings and rate hedge benefits. Include all available tax credits, rebates, and incentives.
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Run cost analyses to determine return on investment timeframes. On-site alternative energy generation often provides excellent long-term cost savings but involves considerable upfront capital.
Install and Utilize the System
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Upon selecting your technology approach, hire qualified designers and contractors to properly install and integrate the system. Secure all needed permits and grid approvals.
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Once up and running, monitor energy production vs. consumption to optimize usage. Prioritize self-supply, then selling excess power back to the grid at premium rates.
Maintain Optimal Performance
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Perform all recommended system maintenance to keep your alternative energy equipment in peak operating condition. For example, clean solar panels periodically to remove dust, dirt buildup, and debris that impedes output.
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Monitor performance metrics and production levels vs. initial estimates. Address any underperformance issues or faults immediately to maximize productivity.
The Value of Reducing Your Grid Reliance
Switching to alternative energy sources requires an investment of time and capital, but the long-term payoff can be tremendous. The financial savings over time from reduced electric bills provide guaranteed returns. Additionally, embracing renewables like solar and wind aligns your business with environmentally conscious values.
With the right combination of technologies and strategic approach, your small business can tap into clean energy resources available right in your local area. Consult experts to determine the optimal alternative energy systems for your specific location and operations. The ability to generate a portion or all of your own power onsite will benefit your business's bottom line for years to come. Take control of your energy future and start saving today!