How Using Alternative Energy Affects Businesses
http://www.corporatezone.net/articles/15508/1/How-Using-Alternative-Energy-Affects-Businesses/Page1.html
Everette Jamison
Power Systems & Controls is the industry standard for Uninterruptible Power Supply and Frequency Converters By Everette Jamison
Published on 10/17/2008
Going green is becoming increasingly popular with businesses of all sizes.
Going green is becoming increasingly popular with businesses of all sizes. There are many motivations for them to do so. First, companies who choose to use alternative sources of energy can enjoy significant cost savings. These savings can come from using less costly forms of electricity. But, it can also result in improved employee morale and increased productivity. Second, businesses who go green are often looked upon more favorably by consumers. Being environmentally friendly is an image that builds a positive brand in the minds of customers. Below, we will describe how using alternative energy can affect businesses, small and large.
Cash Flow Considerations
Business owners know firsthand that the cost of utility energy is increasing. Restaurant owners, large manufacturers and even micro businesses (those with fewer than 10 employees) are affected. They realize that the computers, equipment, lights and other items that need electricity throughout each day can result in a monthly electric bill that climbs into the thousands. The larger the business, the greater the financial impact.
When businesses use alternative energy sources, they can save money on their utility bills. Many large businesses have already taken note. For example, REI is investing in photovoltaic solar panels for 10% of their stores. Similarly, News Corporation (owned by Rupert Murdoch) has begun investing in wind turbines in India. The savings for using these alternative energy sources is often reflected in a company's bottom line.
Rebates And Tax Incentives
Several states offer businesses energy rebates and tax incentives for using alternative energy. These rebates and incentives can have a major effect on a company's profitability. In some locations, businesses are even allowed to sell excess energy they produce back to the utility companies.
More cities and states are beginning to realize the effects of offering these incentives. Recently, San Francisco enacted their Solar Energy Incentive Program. Through the program businesses can receive a $10,000 rebate on photovoltaic paneling systems that they've purchased and installed. Between these rebates, tax incentives, monthly cost savings and the opportunity to sell excess energy to utilities, many businesses are realizing that there is an enormous benefit to using alternative energy.
Straight To The Bottom Line
Most companies will agree that their ability to manage cash flow is critical to their daily operations. They struggle to meet the demands of their customers while watching the cost of energy (and other resources) rise. Many have also become frustrated with their utility power as a result of occasional blackouts. For them, the extra incentives to finally give alternative energy a chance are attractive.
Each year, we continue to expend our reserves of fossil fuels and watch the price of utility power rise. As the problem looms larger, more businesses will begin to migrate to alternative energy solutions. In the end, such options may become the default practice of companies.
Cash Flow Considerations
Business owners know firsthand that the cost of utility energy is increasing. Restaurant owners, large manufacturers and even micro businesses (those with fewer than 10 employees) are affected. They realize that the computers, equipment, lights and other items that need electricity throughout each day can result in a monthly electric bill that climbs into the thousands. The larger the business, the greater the financial impact.
When businesses use alternative energy sources, they can save money on their utility bills. Many large businesses have already taken note. For example, REI is investing in photovoltaic solar panels for 10% of their stores. Similarly, News Corporation (owned by Rupert Murdoch) has begun investing in wind turbines in India. The savings for using these alternative energy sources is often reflected in a company's bottom line.
Rebates And Tax Incentives
Several states offer businesses energy rebates and tax incentives for using alternative energy. These rebates and incentives can have a major effect on a company's profitability. In some locations, businesses are even allowed to sell excess energy they produce back to the utility companies.
More cities and states are beginning to realize the effects of offering these incentives. Recently, San Francisco enacted their Solar Energy Incentive Program. Through the program businesses can receive a $10,000 rebate on photovoltaic paneling systems that they've purchased and installed. Between these rebates, tax incentives, monthly cost savings and the opportunity to sell excess energy to utilities, many businesses are realizing that there is an enormous benefit to using alternative energy.
Straight To The Bottom Line
Most companies will agree that their ability to manage cash flow is critical to their daily operations. They struggle to meet the demands of their customers while watching the cost of energy (and other resources) rise. Many have also become frustrated with their utility power as a result of occasional blackouts. For them, the extra incentives to finally give alternative energy a chance are attractive.
Each year, we continue to expend our reserves of fossil fuels and watch the price of utility power rise. As the problem looms larger, more businesses will begin to migrate to alternative energy solutions. In the end, such options may become the default practice of companies.