Harnessing the Power of Solar Energy for Businesses: A Crucial Step Towards Sustainability

March 27, 2024

Amidst New York State's fervent drive towards achieving ambitious climate protection goals, solar energy specialists are emphasizing the urgency for businesses to embrace solar energy sooner rather than later. With incentive programs making renewable energy systems more accessible and affordable, the transition to solar power presents a host of benefits for both businesses and homeowners.

Executives from GreenSpark Solar in Wayne County and 3rd ROC Solar in Pittsford assert that solar arrays not only provide a stable energy source but also play a pivotal role in reducing greenhouse gas emissions—a critical imperative in the fight against climate change.

A looming factor accelerating the need for businesses to adopt solar energy is the impending implementation of New York State's Cap and Invest Program. Danielle Mettler-LaFeir, partner at Barclay Damon LLP, stresses that taking action sooner rather than later can help mitigate potentially significant additional costs that businesses may face under this program.

Enacted in 2019, the Climate Leadership and Community Protection Act (CLCPA) sets forth ambitious targets for greenhouse gas reductions in the state. With mandates calling for a 40 percent reduction in GHG emissions by 2030 and an 85 percent reduction by 2050, businesses are under increasing pressure to curb their emissions.

The Cap and Invest Program, a collaborative effort between the state's Department of Environmental Conservation and NYSERDA, will compel large-scale manufacturers and fuel distributors to procure allowances for their GHG emissions. Mettler-LaFeir explains that while this program aims to incentivize emission reductions, it will inevitably lead to heightened costs for consumers and businesses alike.

In light of these impending changes, business owners are urged to assess the potential impact of the Cap and Invest Program on their operations and explore avenues for reducing greenhouse gas emissions. Moreover, considerations regarding future expansion plans should be factored in, given the continued importance of compliance with CLCPA requirements.

While the prospect of transitioning to solar energy may seem daunting, numerous resources are available to assist businesses in navigating this transition. The Climate Solutions Accelerator, a Rochester-based nonprofit, offers tailored programs to help businesses develop comprehensive climate action plans and reduce their environmental footprint.

Mark Vanderbrook, director of commercial origination at GreenSpark Solar, underscores the economic viability of solar energy, citing internal rates of return ranging from 8 to 10 percent for solar systems. Beyond immediate cost savings, solar energy offers protection against the volatility of traditional utility rates.

Government initiatives such as the Inflation Reduction Act of 2022 and the USDA's Rural Energy for America Program provide additional incentives for businesses to invest in solar energy infrastructure. With these incentives combined with the long-term benefits of solar energy, it emerges as a financially attractive option for businesses seeking to lower their carbon footprint and reduce energy costs.

In summary, the transition to solar energy presents a significant opportunity for businesses to not only mitigate their environmental impact but also realize substantial cost savings over the long term. By taking proactive steps now, businesses can position themselves for success in a future where sustainability and economic prosperity go hand in hand.