By engaging in power purchase agreements (PPA), businesses can afford to spend more on perks for their employees – such as staff bonuses.
This is according to Henri van Eetveldt, Senior Solar and Storage Consultant at Energy Partners Solar – a division of Energy Partners and part of the PSG group of companies – who says that renewable energy solutions, supported by PPAs with capable service providers, can save businesses a considerable amount in operational costs throughout the year. “This is money back in the pocket of the business, which can then be used to pay hard-working employees a little extra incentive at the end of the year.”
In fact, Van Eetveldt says that a grid-tied solar photovoltaic (PV) system installed on a company’s premises, and operated by a service provider on a PPA basis, can reduce the energy spend of a business by up to 30%. “These types of agreements do not require any initial capital outlay on the part of the business. It offers the cost-saving benefits of renewables without the asset risks associated with actually owning the system.”
Depending on site details (such as usage profile, location, and current infrastructure), he explains that the cost of electricity for reliable power from the energy centre could be between R0.65 and R1.10 per kilowatt-hour. This price would include the maintenance of the system.
Van Eetveldt adds that businesses will increasingly need to rely on renewable energy if they are to remain competitive and be able to afford added extras for their workforce. “The cost of electricity has increased by above-inflation rates for several years now, and businesses have been forced to cut as much on their expenses as possible.
“Luckily, solar energy such as solar power has become readily available through PPAs, without companies needing to spend any time or capital on actually operating these systems,” he adds.
As such, Van Eetveldt believes that companies who choose to make solar energy a part of their operation through PPAs, place themselves in a much better position to control their costs. “Instead of being bound to a state entity that the business has no control over, privately generated renewable energy enables an organisation to ensure their energy costs remain stable over the long-term.”
He emphasises that businesses can no longer remain indecisive about making private energy generation an integral part of their total business strategies for the coming years. “Partnering with a service provider such as Energy Partners Solar today, can help you to give your employees an added reward for their hard work by next Christmas,” Van Eetveldt concludes.