There isn’t a week that the news is not filled with weather-related catastrophes and extreme events concerning the evolution of ocean temperature and acidity, glaciers and ice sheets disruptions, droughts, floods and crop-threatening weather patterns.
According to a study by NASA, we are reaching a scientific consensus where the clear majority of actively publishing climate scientists agree that humans are causing global warming and climate change. Some examples of the activities caused by human are the burning of the vast amount of fossil fuels, coal, oil and gas for power and heat. These carbon-containing fuels release carbon dioxide along with other heat-trapping gases into the Earth’s atmosphere.
Things Are Heating Up
In the International Energy Outlook 2017 (IEO2017), it was referenced that the total world energy consumption would see an increase of 28%, from 575 quadrillion British thermal units (Btu) in 2015 to 736 quadrillion Btu in 2040. While this surge in energy demand could lead to the risk of hitting a global energy crisis and rising greenhouse gas emissions, it is heartening to see a growing consensus among nations to undertake ambitious efforts to combat climate change with the advent of the Paris Agreement. It is also an upward trend that we are seeing some of the world’s most influential companies, like Google or Apple, stepping up their commitment to procure 100% of their electricity needs from renewable sources with the RE100 initiatives. It is no longer a novelty to see headlines of large corporations publicly and proudly pledging their allegiance to the “Go-Green” league.
A Business Challenge
Making a significant change on a company’s CO2 footprint requires a significant amount of upfront capital and resources. More often, these activities can be perceived as competing for capital and resources with the company’s core business activities, essential to maintain the organization’s competitive advantage without adding pressure to its bottom line.
Yet, in the face of combating climate change and a growing environmentally-conscious customer demand for sustainable products and services, businesses today will inevitably have to source for cleaner energy to power their business operations.
While solar power is the fastest-growing source of renewable energy in recent years as it generates long-term savings on electricity bills compared to conventional grid power, the two main hurdles for solar adoption would be the upfront capital costs for installation and the resources required to operate and maintain the solar photovoltaic (PV) system for reliable and optimal performance during the system’s entire lifetime. A good way to de-risk such commercial solar projects is to enter a partnership with reliable third-party developers who are experts in their field and will be responsible for financing, constructing, owning and operating these solar PV systems. This also frees up resources and capital for the company to focus on their core business functions.
As we hear all the time, a 2-degree rise in global temperature is the tipping point to a destructive and irreversible effect to our planet. In the recent IPPC findings, it is reported that “every half a degree matters” where a 0.5 degrees Celsius increase in temperature could lead to more distressful consequences in a warming world. Global climate change already has a visible impact on our planet and the time to act is now. Solar-as-a-service, or solar leasing long-term partnerships have become a viable and increasingly compelling tool for corporate to help meet their climate change mitigation goals.
Find out more about how Solar-As-A-Service works here.