Redefining the Value Proposition of Solar Energy for Businesses in the era of the ‘pandemic’
July 2021
As a marketeer, exploring new platforms for social and digital media communication, especially given the restrictions on physical networking post Covid-19, has become part of the job description. The hours I have spent recently on the newest entrant in the audio engagement space, ‘MENTZA’ made me realise the Sustainability, Clean Energy and Energy Transition were no longer conversations restricted to boardrooms, political corridors or along the sidelines of conclaves. A better planet for future generations was conversation that individuals were engaging in every day. Debates ranged on whether sustainable living was too expensive for the common man, could electric mobility ever replace the convenience of fuel-driven automobiles, is lack of awareness or uncontrollable population the real challenge, should the government target going green through a top-down or bottom-up approach – the views were aplenty and intensely meaningful, which led me to think ‘why NOW more than ever before is a green future so relevant.’
INDIA’s ENERGY & ELECTRICITY SCENARIO
Our country is home to 17 out of 20 most polluted cities in the world – over 70% of our emissions are a result of energy consumption viz. auto fuel, thermal electricity and industrial output. The most impactful way towards decarbonization is through energy transition and green mobility. For the latter, the government and industry are in a relatively nascent stage planning policy, incentives and enabling charging infrastructure to develop a functional ecosystem for Electric Vehicles; mainstream or mass adoption of the same across segments is likely 5 years to a decade away.
However, when it comes to clean energy – this is India’s chance to leapfrog adoption of renewables and truly emerge a global leader in combating climate change.
RELEVANCE OF CLEAN ENERGY IN THE PANDEMIC ERA
The low-cost, low-carbon value proposition for solar and wind energy is undeniable – making it extremely attractive in a price-sensitive market like India. Since 2010, solar tariffs have fallen by close to 70% owing to multiple factors including rampant Chinese manufacturing, robust supply chain, innovative technology and increasing efficiency of PV modules. The past year has seen a marginal uptick in module pricing, despite which solar remains the cheaper source of power, especially for the commercial and industrial sectors.
The pandemic has only sharpened the spotlight on the solar sector, making it important to redefine its relevance to the consumer. The resultant economic slowdown has businesses looking to cut down operational costs to the maximum extent and shaving off 30-60% on electricity tariffs can be hugely beneficial. The OPEX model for onsite solar, that most developers offer today lets the client pay per unit for just the electricity consumed and has no requirement for capital investment upfront. The long-term clarity on power costs in the form of a 20-25 year PPA (Power Purchase Agreement) only sweetens the deal.
Jobs creation is another important factor for both the government and leading corporates to press the pedal on energy transition. The industry estimates that for every 1-2 MW of solar installed, at least 50 contract or temporary opportunities are created alongside 2-3 permanent ones. The emphasis on UN-prescribed ‘Just Transition’ has a lot of developers ensuring community welfare and upliftment of locals is prioritized at project sites, even in the remotest of locations.
Climate Change is a reality and erratic weather patterns across the globe reflect that it is a crisis that deserves our immediate attention. Periodic lockdowns across bustling cities and towns in the past 2 years has shown Indians the benefits and sheer beauty of clean, carbon-free air – a direct reduction in respiratory illnesses while preserving the planet for future generations. As more and more individuals and companies commit to Sustainable practices, the easiest way to make a difference is by switching to renewable energy sources.
CUSTOMISED COMMERCIAL & INDUSTRIAL SOLAR SOLUTIONS
At Fourth Partner Energy, we understand that every business operates out of a unique production or manufacturing facility and has a very specific energy requirement a.k.a one size does not fit all. Our thorough site survey and electricity demand analysis helps us determine what solution and design works well for that particular business facility. Our plethora of solutions ranges from on-site to off-site solar, energy storage, trading, floating solar as well as EV charging infrastructure. For us, it is not about winning an order from a company to install a solar plant – it is about transforming the way that business consumes electricity, providing them with sustainable alternatives across the value chain to leave behind a greener footprint.