Power Your Business Sustainably Through Solar Energy

Power Your Business Sustainably Through Solar Energy

Feature Article by Sembcorp Industries  (Sembcorp)

Climate change is a major threat to the earth, causing more frequent and intense droughts, storms, rising sea levels and melting glaciers. All of this has led companies in the commercial space to prioritise sustainability, which includes a trend towards adopting solar energy. At the COP26 climate conference in 2021, more than 1,000 companies committed to adopt targets to reduce emissions in line with the Paris Agreement goals. Singapore is among the 80-odd countries that have set net-zero targets that are to be reached mostly by 2050. A report also found that a fifth of the 2,000 largest publicly-listed companies in the world have pledged to pursue a net-zero strategy. To ensure that these commitments are met, companies from different industries around the world are pursuing strategies that promote sustainability.

With renewable electricity generation in 2021 experiencing the fastest year-on-year growth since the 1970s, solar power has become a major trend, seeing a record growth of 160 GW in 2021. Singapore has also embraced solar energy, having multiplied its solar capacity by more than seven times since 2015. The country also plans to boost its solar capacity to at least 2GWp by 2030, which is enough energy to power some 350,000 households. This goal will take solar energy’s contribution to Singapore’s total electricity demand to 4%, up from the current 1%.

Supply chain businesses jumping on the sustainability bandwagon

 In line with the push towards sustainability in the commercial space, supply chain businesses are also ramping up on sustainability efforts.

DHL Supply Chain, one of the world’s leading contract logistics agencies, progressed in its sustainability efforts by partnering with Sembcorp to develop a 1.24MWp rooftop solar energy system at their 81 Alps Avenue warehouse facility in Singapore. The system is expected to produce 1,575 megawatt hours of power annually, enough to power about 365 four-room HDB flats in a year.

“The solar project is an essential part of DPDHL Group’s sustainability roadmap and strengthens our commitment to operate our warehouse facilities at Net Zero Carbon by 2025. DHL Supply Chain Singapore is excited to partner with Sembcorp, with whom we share common values in protecting the environment,” said Eunis Hew, Managing Director, Singapore, DHL Supply Chain.

YCH Group, one of Asia’s leading supply chain and logistics conglomeratesis another supply chain company that is using solar power to help cut their CO2 emissions. Headquartered in Singapore, YCH’s network of DistriParks and supply chain hub are located in more than 100 key cities in Asia, including China and India. A champion of green logistics, it partnered with Sembcorp to build a rooftop solar installation at their facility, Supply Chain City, at the heart of the Jurong Innovation District.

The solar energy generated by Sembcorp’s Solar PV System at Supply Chain City can power up to 848 4-room HDB flats per year. The system uses a centralised digital platform that remotely monitors data of their solar systems in real-time, enabling the operations and maintenance team to have visibility for deployment to specific sites if needed. By commissioning the Solar PV System at Supply Chain City, YCH is now able to reduce its grid energy consumption by up to 30%. Sembcorp’s Solar PV System is now helping YCH avoid 1,453 tonnes of CO2 emissions per year, which is equivalent to taking 320 cars off the road per year or planting 17,530 trees per year.

“The inauguration of the solar energy system with Sembcorp marks a new milestone in YCH efforts to build on our green initiatives,” said Dr Yap, Executive Chairman of the YCH Group. “We look forward to collaborating with them and leverage their smart solar energy system to power our warehouses across the region.”

Cache Logistics Trust, Singapore

Businesses can reap many benefits from solarising their buildings

For companies in Singapore, one of the strong push factors for solarising their facilities would be to deal with the revised carbon tax rates that were recently announced. Minister for Finance Lawrence Wong said in February that Singapore’s carbon tax rate will be revised from S$5 per tonne of carbon to $25 in 2024, $45 in 2026, before reaching $50 to $80 per tonne by 2030. Mr Wong said the revised carbon tax trajectory is meant to encourage businesses “to internalise the costs of carbon, and take actions to moderate their emissions”. As solar energy is a low carbon energy option, companies that solarise their energy systems can use these systems to help cut their carbon tax bill.

The cost of electricity has also been soaring in recent times due to a global crunch in electricity supply and electricity costs are expected to continue to rise in the near future. Companies that use solar energy can potentially cut their electricity bills and enjoy immediate savings, as the levelized cost of electricity from new solar panels is generally lower than the current regulated tariff.

Another advantage of installing a solar system for a business is to help it achieve a Green Mark certification for its facilities from the BCA in Singapore. Awarded to companies whose buildings follow good sustainability design, the BCA Green Mark certification can help polish the company’s corporate image, while also improving the leasing and resale value of their buildings.

YCH Logistics, Singapore

Partnering with Sembcorp to achieve your sustainability targets

As a leading energy and urban solutions provider, Sembcorp has more than 5.7GW of renewable energy portfolio across key markets such as Singapore, Vietnam China, India and the UK. With its vast experience and industry knowledge, Sembcorp offers a full suite of solutions including ground-mounted, rooftop and floating solar PV systems and can help companies on their green journey by solarising their buildings’ rooftops. We make the process simple, as there are no OpEx or CapEx to worry about with Sembcorp providing end to end implementation for you. As the owner and operator of the solar PV system, we bear all the capital, operating and regulatory expenses, while providing you with a performance monitoring system, an inhouse operations and maintenance team and a reliable connection to the grid upon project completion.

Some of our logistics clients in Singapore include Agility, Kim Soon Lee and Cache Logistics Trust,  Recognised for our role in helping companies succeed in their sustainability journey, we deliver projects with speed while maintaining an excellent safety record with stringent safety standards and best practices in the industry, winning the Singapore Apex Corporate Sustainability Award 2020 and the Frost and Sullivan Best Practices Awards in 2020 in the best Solar Power Company category.

Yeo Ying Da, managing director of the leading shipping company Lita Ocean, is one of our partners in sustainability who worked with Sembcorp to solarise his company’s buildings. “Our electricity bills have doubled due to recent events. Thanks to the speedy installation of the solar panels by Sembcorp, we expect to save close to $3,000 every month, while contributing to a cleaner environment. Sembcorp has been a dependable and committed sustainability partner for us,” said Yeo.

Another client of Sembcorp is Soo Eng Joo Frozen Food. “Due to the nature of our business, our energy consumption is relatively high. During our search for more energy-efficient technology, we met up with numerous vendors offering energy solutions. We finally picked Sembcorp Solar as our partner for their proven track record and value-add services,” said Charlie Seo, Business Development Director, Soo Eng Joo Frozen Food.

Join us as a partner in sustainability to power your business through solar energy.

Contact us at hello@sembcorp.com or scan the QR code below for a non-obligatory assessment of your rooftop’s solarising potential.

Your Questions Answered:

What is a power purchase agreement?

A Power Purchase Agreement (PPA) is a contract that you sign with Sembcorp Solar for the     development of the rooftop solar system which produces solar energy that will be sold to you at an    agreed price

What permits or licenses do I need to apply for?

Sembcorp Solar takes care of all permit and licence applications. You are not required to submit any applications

With rooftop solar, do I still need power from the grid?

Yes, you will need power from the grid if your consumption load is higher than the amount of solar energy generated. For example, you will need power from your grid when your rooftop solar system is not generating power at night.

How do I know if my roof is suitable for rooftop solar?

Most concrete and metal roofs with sizable unused space are likely to be suitable for rooftop solar.    When you get in touch with us for a quote, our solar professionals will assist you with this assessment.