How SMEs can cut operation costs by switching to renewable energy

Problem: Increased operation costs due to high electricity rates

Since October 2021, prices of electricity have gone up by more than 400%, and the new norm is as high as S$0.30 per kilowatt-hour (compare this to $0.07- 0.10 before Oct 2021). As a result, businesses have seen the impact of the spike in operating costs. 

Solution: Switch to renewable energy 

Why? 

The rise in electricity prices has led to an increased demand for renewable energy. Renewable energy rates have always been less competitive in the past. Now, with the volatility of the electricity prices, renewable energy can be used by businesses as a long term solution to hedge against the uncertain electricity prices, hence cutting costs in the long run. 

With carbon tax increasing to S$25 per tonne by 2023, electricity price is likely to increase further as power companies may pass down the increased cost to consumers, making renewable energy an attractive alternative.

How? 

For SMEs with sizable roof spaces, these are the feasible options: 

1. Invest in Solar PV Systems
2. Allow third party Solar PV developers to construct Solar PV Systems and buy the renewable energy from the developers via a power purchasing agreement (PPA)
3. Roof leasing to third party Solar PV developers

In the long run, SMEs will benefit from the switch. If you wish to find out more on implementing the switch, feel free to reach out to us for a discussion.