UK businesses face mounting pressure to improve their sustainability efforts, driven by both regulatory requirements and heightened stakeholder expectations for robust Environmental, Social, and Governance (ESG) strategies.
ESG strategies are complex. In the Environmental element alone, companies must tackle emissions, energy efficiency, supply chain transparency, waste management, habitat impact, resource scarcity, and more. It requires significant effort, likely investment, and clear communication of progress both internally and externally.
With over a decade of experience as a renewable energy specialist, we have assisted companies across various sectors in tackling their emissions. This experience has shown us why solar PV is an ideal initial step for your ESG action plan.
The financials will always add up for solar PV
While companies adopt solar PV for a number of reasons, financial benefits have consistently been a primary driver behind their investment in solar panels.
When Geo Green Power was established in 2010 we found that early adopters of onsite solar generation initially faced high installation costs, but these were countered by the generous Feed-in Tariff (FIT) scheme. This government initiative provided property owners with incentives based on their energy generation until its conclusion in March 2017.
During the 2022 energy crisis, financial considerations once again drove the solar PV market. Escalating energy costs, largely due to uncertainties in the energy market linked with the conflict in Ukraine, prompted many businesses and homeowners to explore renewables. Amid such uncertainty, installing solar PV allowed organisations and individuals to fix the price of a large portion of their energy needs, leading to savings and enhanced energy security.
The surge in solar PV investments in 2022/2023 boosted manufacturing output and, today, installation costs are the cheapest they have ever been thanks to competition in the wholesale market. Higher-wattage, more efficient panels are also contributing to this. With energy prices stabilising, or potentially returning to pre-crisis levels, the financial advantages of solar PV systems remain compelling, with systems typically paying for themselves within 4-5 years.
Solar PV has always been and continues to be attractive in terms of return on investment.
Reducing emissions
Solar panels generate DC electricity using energy from the sun, which is then converted to AC energy using a solar inverter. This can be fed into the power supply of homes and businesses to reduce the amount of energy required from the electricity grid.
With emissions playing a crucial role in businesses’ ESG strategies, it’s important to consider that solar panels generate this energy without releasing any harmful emissions. Switching to solar energy reduces the carbon footprint compared to generating energy through conventional fossil fuel methods. Since solar panels became available, people have invested in them to reduce harmful emissions that contribute to global warming.
In the last decade, awareness of climate change and its potential devastating impact on our planet has grown. World leaders are now implementing commitments and plans to address greenhouse gas emissions, and businesses and homeowners have a critical role to play.
Since our inception, we have worked with customers committed to decarbonising their operations. In recent years, the personal desire to be more environmentally responsible has evolved into a corporate imperative for sustainability. Today, it’s increasingly recognised as a core element of a successful business and often a mandatory consideration for new properties under legislation and signing new supply chain contracts.
Getting ahead of the competition
Although our customers’ motivations vary, those who have investigated and incorporated solar PV into their sustainability or ESG plans are seeing an emerging and important additional benefit from their investment.
As highlighted above, consumer opinion and legislation are increasingly driving companies to do more to increase their sustainability and provide greener products.
Many of our customers have won and retained contracts by demonstrating their commitment to sustainable practices. Manufacturers investing in solar PV can support their customers’ Scope 3 emission reduction plans, making them a preferred supplier.
As a company’s commitment to the future of the planet becomes increasingly important, ESG plans are giving businesses the edge over their competitors. It’s been no surprise to us that our customers are regularly winning awards for their sustainability and decarbonisation achievements.
So why is solar PV the sensible first step? Here are two key reasons why investing in solar panels should be the top priority in your ESG plan:
1 Solar PV reduces emissions immediately
As soon as we commission your system you’ll begin generating and using your own clean, green energy, reducing your carbon footprint significantly. A 50kW system will save around 12 tonnes of CO2 a year. It’s clear, it’s measurable and you can start demonstrating your commitment immediately.
Switching to renewables to reduce emissions is very simple and can be done with minimal impact to your operations. Decarbonising other areas of your business can be more challenging to deliver and intrusive. Starting with a quick win like solar PV makes sense, as it provides an immediate and significant reduction in emissions.
2 Solar saves money
Even if your primary motivation for investing in solar is to reduce carbon emissions, it’s almost inevitable that your system will also save you money. When working with commercial clients, the systems we design and specify deliver both significant emissions reductions and cost savings, usually achieving full payback in 4-5 years. Considering that a solar PV system will keep generating for over 25 years, the long-term savings are considerable.
Why is this important for your ESG plans? While most waste reduction and emission reduction efforts will lower costs in the long run, some changes may actually increase your operational costs. You might also need to invest in new technology with a much longer payback period.
If you’re able to kick start your programme with solar panels, the savings you generate can help fund your ongoing ESG activities. This supports the longer ROI periods of other measures and offsets any steps that might increase your operational expenses.
Our customers have inspired us to do more
Over the last 14 years we have worked with a number of individuals and organisations whose commitment to improving their sustainability and reducing their impact on the environment is truly outstanding. Their ESG plans are wide and far reaching, going beyond carbon reduction, and addressing issues such as habitat loss, truly sustainable supply chains and local community issues.
We have been impressed and inspired by our customer’s commitment to ESG and are now looking to build out our own ambitions.
Our company’s fleet accounts for the largest proportion of our emissions. To address this we have already transitioned to plug-in hybrids and EVs for all our company cars. In January 2024, we stopped purchasing new diesel vans, and from January 2025, we will no longer buy new petrol vans.
We are committed to practising what we preach. Our premises have a 58kW solar PV system, and our offices are 100% powered by electricity. The paper stock for our printed marketing literature is sourced from sustainable forests, our cleaning products are refillable, and all waste is meticulously sorted for recycling. We responsibly repurpose or recycle old technology through accredited channels and have pledged support for the Solar Energy UK Supply Chain Statement, among other sustainability initiatives. Additionally, we plant over 1,000 trees annually through Treeapp – one for every quote we produce.
We are committed to do more, and are looking to emulate some of our most impressive clients with a full ESG strategy to improve our sustainability, support our local community and strive for improvements across our industry and within our own business. Watch this space!
Whether you are beginning your ESG journey, or progressing at pace with your plans, our team of renewable energy experts can help you identify opportunities to reduce emissions and save costs for reinvestment.
