2020 has seen the biggest year-to- year reduction of carbon dioxide emissions on record, as energy demand has plummeted around the world. This moment may provide an opportunity for companies wanting to push for greener and more sustainable energy choices. Businesses Can Respond to Shifts Toward Green Energy Looking for green energy companies to partner with may be a good long- term strategy for businesses wanting to stay ahead of the curve. While oil and gas — and coal, to a lesser extent — remain the biggest sources of power now, renewables are catching up. In general, energy experts agree that an industry-wide transition to green power sources is more a matter of when than if. Consumer perception of sustainable energy is overwhelmingly positive, while opinions on fossil fuels are much more divided. Dedicating resources to working with green power companies could also help businesses wanting to improve their reputation or demonstrate a commitment to environmental stewardship. For example, marketing companies could take advantage of the moment to offer eco-friendly rebranding services or help businesses establish partnerships with sustainable brands and energy companies.
than ever, with prices per watt of this energy falling consistently each year. It’s also on track to become even cheaper over the next few years. Businesses that want to outfit their office with a photovoltaic solar system can take advantage of this trend. There is a wide range of solar battery and system providers available. An extension to the federal Solar Investment Tax Credit also means that, until 2022, consumers wanting to install individual or commercial systems can write off 26% of the cost on their federal tax return. Currently, solar systems are efficient enough that an office with enough roof space can offset a significant amount of its yearly energy consumption, potentially saving thousands of dollars or more. According to market data from EnergySage, the average commercial owner was able to reduce their energy bill by 89% with current solar tech. Solar innovations may soon make commercially available panels even more efficient, allowing businesses to further reduce their energy spending with office solar systems. For marketers, these innovations are worth tracking. Right now, many businesses are trying to demonstrate their commitment to sustainable practices. Showing off a green, solar-powered building could be a draw for some audiences. Solar system manufacturers may also want to ramp up advertising as these systems become more affordable. Knowledge of solar tax credits and potential savings could streamline marketing research for these companies. Market conditions and the coming demand peak for fossil fuels is pushing the energy industry in a new direction. Because the sector is essential to all other industries, these new trends are already having a significant impact on the business world. The pivot to eco-friendly energy sources is likely to How a Changing Energy Industry Will Affect Business intensify over the coming years. Businesses wanting to take advantage of this shift may want to consider investing in sustainable energy — whether that means partnering with a green energy company or adopting tech like a commercial solar system. n
Pivot to Green Energy Opens New Options for Businesses The shift toward sustainable energy may also have significant implications for businesses. Consumer and enterprise solar technology, for example, is more accessible
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November 2023 | The Business Review
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