10 Steps to Becoming a Carbon Neutral Business

Page 28 STEP 07: SWITCH TO RENEWABLE ENERGY And even when on-site installations are feasible, they may not be able to deliver all your electricity demand. Therefore, you may need to combine on-site installations with other alternatives to fully green your electricity supply. Unless you can find a partner who wants to own the installation and lease it back to you e.g. through a PPA structure, an on-site installation requires a significant upfront investment and you are responsible for the project development on your property. While there are clearly costs associated with the construction phase, you are also bearing the operating cost. The fact that you own the renewable energy project and that it is located on one of your sites means that you lose a certain amount of flexibility. For example, should your organization lease instead of own a building, the on-site installations may well outlast your lease term case. Additionally, if a business needs to change its footprint quickly, the resulting inflexibility from an on-site installation can represent a significant financial risk. One of the key benefits of on-site installations is that you can procure energy well below the market price. Even though on-site installations require an upfront investment, the financial returns can in the long-run be much higher than sourcing energy through a PPA structure. In addition, on-site installations decrease the dependency on the local grid operator and market price fluctuations. Having your own green energy production also shows a strong commitment to renewable energy. 1. Your organization contacts a project developer or a technology provider 2. The project developer or technology provider installs on-site production 3. Electricity is delivered without accessing the wholesale market , or “behind the meter” 4. The RECs associated with the renewable energy generated are transferred to your organization How do on-site installations work? YOUR ORGANIZATION ON-SITE INSTALLATION PROJECT DEVELOPER