Climate change is real and nearer than ever before. It has accelerated the need for businesses to do their part in effectively utilizing available resources and secure the global goal of net-zero emissions by 2050. Given their carbon footprint, industrial and manufacturing companies need to prioritize energy efficiency with an eye on the 1.5°C climate target.

As the world — governments, businesses, and citizens — evolves towards a more sustainable way of life, industrial and manufacturing processes, too, need a green makeover. Some immediate and resolute actions include:

• Expediting the phasing out the use of fossil fuels.
• Increasing investments in alternate and renewable energy sources like solar and wind.

Climate and geographical factors play a key role in choosing renewables for organizations as they need to ensure a consistent and regular supply of energy. In this context, India’s location allows optimal harnessing of solar energy, making it a high-value choice for manufacturing sector in the country.

For example, SPIC, the flagship company of the AM International group, inaugurated a floating solar power plant within its premises at Thoothukudi, Tamil Nadu. Owned by Greenam Energy, part of our green solutions business, the state-of-the-art 22 MW solar power plant has the capacity to comfortably meet all of SPIC’s green energy needs.

During its inauguration, Ashwin Muthiah, Founder Chairman of AM International, said, “It demonstrates our ESG commitment to progress towards renewable energy. The project marks a significant achievement in the development of solar-generated energy. It further establishes our focus on using renewable energy to build a sustainable future.”

The setting up of renewable energy sources by companies is gaining traction among the manufacturing sector. Besides, decision-makers need to internalize that switching to renewable energy in fact attracts several long-term advantages. Here are five business benefits of moving to solar-powered operations:

• Cost-efficient: Solar power is cheaper to harness and use than traditional energy resources like coal or gas. It helps to optimize energy use and reduces raw material costs, thereby positively impacting the cost of production. Moreover, unique concepts like floating solar plants, which can be installed on existing water bodies, eliminate the need for additional land to set up the infrastructure.
• Self-reliant, fewer risks, more resilience: In-house power generation reduces an organization’s reliance on power suppliers. It lessens business risks like unexpected outages or supply disruptions, ensuring business continuity and resilience to withstand adverse situations. Solar power plants decrease the chances of emergencies like gas leaks and fires, de-risking nearby communities and forests as well.
• Additional revenue source: In case an organization’s solar power plant generates surplus energy, it can be sold to the power generation companies. This way, the company’s green investment gets an additional source of revenue. It also helps the local ecosystem with clean power, further enhancing the nation’s sustainable goals.
• Tax credits: Considering the global focus on sustainable energy, most countries now offer concessions to green investments. Manufacturing businesses can avail of tax breaks from the various schemes introduced by the central and local governments to encourage green practices. This enables companies to get costs efficiencies by setting up solar power infrastructure.
• Supporting the nation’s goals: By setting up solar power plants and using green energy in their operations, manufacturing companies can help nations fulfil their SDG goals and COP26 commitment. It accelerates the country’s move towards achieving its target of net-zero emissions.

Industrial units have vast potential to develop and employ eco-efficient sources of power generation. This will not only help arrest the effects of climate change, but it will also insulate the business from market volatilities and high costs related to traditional energy procurement. As efficiency increases and technology advances even further, solar power plants can significantly help the manufacturing sector achieve self-reliance for their energy needs and lead the nation’s sustainable growth.