Choosing the Right Renewable Energy Solutions: 5 Key Considerations
Are you overwhelmed by decarbonization decisions? You’re not alone. Many of the people now working on sustainability initiatives don’t have the background, time, or resources to investigate all the available options. Honestly, sustainability planning is complex, even for the most seasoned professionals.
Renewable energy solutions (RES) are a popular starting point, but there are many nuances to be aware of. This list is designed to help you navigate five important considerations that can help you determine the right solutions for your business’ unique priorities and needs.
1. Assess Goals to Determine Renewable Energy Solutions
Knowing your goals and values is key to developing a program that successfully supports your company’s vision and values. When determining your objectives, numbers are not the only consideration. Top issues to ponder include:
Environmental impact: Do you hope to draw awareness to your company’s commitment to renewable energy?
Cost savings: Is cutting energy costs by increasing efficiency part of your plan?
Sourcing energy: Do you want to incorporate renewable energy sources like solar?
Direct or indirect impacts: Do you want to directly impact scope 2 emissions with renewable energy? Or will indirect impact with PPAs, vPPAs or EACs meet your needs?
2. Plan Project Timeline to Mitigate Emissions
When it comes to RES and scope 2 emissions mitigation, timing can increase the complexity of your program or limit the options available. To guide your thinking, consider these key questions:
Is overall impact more important than timing?
If you want to directly address scope 2 emissions with RES, you must spend time upfront. Onsite solar takes several months to assess, plan, and install. Community solar, PPAs, and vPPAs all require lengthy and complex contract negotiations.
Do you need to start reporting impact right away?
If you are looking to show results immediately, EACs are a good option. You’ll be buying renewable energy credits and can to report scope 2 remediation.
3. Budget for Renewable Energy Solutions
Budget is always a limiting factor, but how your decarbonization project is funded also influences the options available. Each RES has its unique funding impact, so defining the guardrails can help determine which solutions best suit your budget. Answering these questions can help:
Do you need to spend the allotted money within a specific time frame?
Is the funding gated in support of particular sustainability milestones?
Is there flexibility for variable costs, or do you need fixed costs?
Are the funds available for general use or allocated for capital improvements (think “infrastructure”)?
Federal, state, and local tax incentives can also help reduce your total outlay. Guidance from tax professionals and the renewable energy experts at World Kinect can help ensure your organization takes advantage of available opportunities.
4. Plan Renewable Energy Infrastructure
This consideration goes beyond whether you have the right roof or land for an onsite solar installation. You’ll also need to think about ways your physical and digital infrastructure will impact your long-term decarbonization goals, including:
Do you want or need to become grid-independent?
Do you have the space needed for onsite battery storage?
Do you operate in an area where the sun shines frequently?
Can your current ecosystem support the load management tools required to optimize RES systems?
5. Account for Local Regulations
Familiarity with the local utility market regulations and tax implications for where you do business is critical in developing your RES strategy. Local regulations could help make specific initiatives more affordable but may restrict others. Having a partner who can help you navigate these complexities and balance compliance considerations with your other priorities is the best way to ensure your investments take full advantage of available incentives and still follow all applicable laws and ordinances.
Bonus Consideration: Boosting leadership buy-in
Rallying stakeholders around program goals can help you build momentum and deliver outcomes aligned with your organization’s values and priorities. Download this Executive Brief for strategies and insights that can help.
Finding the right balance
If you have been tasked with spearheading your organization’s decarbonization efforts, it can be easy to become overwhelmed by the number and complexity of important considerations. Building and implementing a renewable energy plan isn’t a process that can easily be completed independently, regardless of your experience with sustainability topics.
The right insights and expertise can make a huge difference in the time and resources required for your move to renewable energy. No matter where you are in your decarbonization journey, World Kinect’s energy experts can help from project ideation to completion.
Schedule a consultation with a renewable energy specialist to help smooth your transition to renewable energy.
