Hybrid renewable energy systems have the ability to produce power consistently day and night while maintaining cost and reliability similar to that of fossil fuel plants. With the recent urgent need to reduce our environmental impact and meet net zero goals, it is imperative for businesses to recognise the advantages of switching to a combination of fossil fuel and renewable energy sources (hybrid energy sources), which can positively impact their profits.
Given the volatility of the energy market, companies are encouraged to adopt hybrid energy sources preferentially. But what steps can businesses take to cut costs by combining fossil fuels and hybrid energy sources?
What are Hybrid Energy Systems?
Hybrid power systems use multiple renewable energy sources to produce electricity from a single connection point. While the capacity of hybrid generation modules may exceed evacuation limits, the amount of inverted energy cannot surpass this limit. This allows hybrid generation plants to produce a more stable and efficient energy supply using more than one renewable source, such as wind and hydraulic energy.
Businesses have two options for implementing hybrid renewable energy. The first option is to generate renewable energy, such as solar energy. The second option is to switch to an energy supplier that offers green tariffs. Businesses can learn more about implementation by understanding the types of hybrid energy available.
Here are the most frequently used integrations of fossil fuel and hybrid energy systems:
- Solar and wind energy is harnessed using Photovoltaic solar panels and wind turbines.
- Solar and hydraulic energy is produced using solar panels and electricity from moving water.
- Hydraulic and wind energy is harnessed using flowing water and wind turbines.
- Solar thermal and biomass energy harness sunlight and low-level heat found underground to generate electricity.
Using Hybrid Energy Sources To Reduce Costs.
Reduced Energy Bills
Renewable energy can significantly reduce a company’s energy costs. This can be achieved by installing solar panels, wind turbines, or other hybrid renewable energy on-site to power operations.
Installed capacity and how much energy your business consumes determine how much energy demand can be met. Although the upfront costs are expensive, businesses can save up to 75 percent on their electricity bills in the long run.
Protects You From Energy Price Fluctuation
Energy costs are increasing and can change quickly and dramatically. Factors such as fuel availability, power demand, generation and distribution costs affect energy prices.
However, businesses with their own energy sources need not worry much about price volatility. This will allow you to predict your spending more accurately.
Selling Energy Back To The National Grid
If a business installs a power generation system that produces more energy than it needs, it can sell the surplus power back into the national grid. The two main methods for selling solar power back into the national grid are Feed-in Tariffs (FiT) and Smart Export Guarantees (SEG).
The SEG electricity system has replaced FiT, but if you were registered with his FiT before 2019, you could still sell back to the electricity grid. Homeowners and businesses with solar panels, anaerobic digesters, wind turbines, hydroelectric generators and cogeneration microgenerators can participate in the SEG program.
Renewable energy, especially solar energy, offers opportunities to generate additional income and save money. The cost of installing solar panels and other energy systems can be offset by selling surplus energy back into the grid.
Reliability and Increased Efficiency
Power outages are inevitable when connecting to the power grid. However, these failures can result in costly downtime for businesses. Luckily, having your power generation resources and a grid connection reduces the chance of an outage.
In addition, renewable technologies are becoming increasingly efficient, allowing businesses to extract more energy from their investments at lower costs.
Build Trust and Confidence With Your Investors and Customers
Integrating renewable energy sources into your business benefits your business in several ways. An additional bonus from switching is that you can attract green customers and investors looking for sustainable companies to work with.
Investing in renewable energy reflects forward-thinking approaches that can increase investor confidence, corporate valuations, and corporate reputation among consumers. Using renewable energy can indirectly improve business performance and increase sales.
Using hybrid energy sources not only reduces risks but also reduces costs for businesses. Businesses can significantly reduce their energy costs by supplementing traditional fossil fuels with clean energy. Additionally, using renewable energy can help businesses by reducing short- and long-term costs and risks in the future.