Green energy has become more popular every year. It also has been embraced by environmentally conscious consumers.
An example is Apple. The company recently opened its headquarters in Apple Park. The new building features a suite of solar panels that produce 4 million watts of energy, saving the company a serious amount of money.
Patagonia is another company that has embraced climate-friendly policies. For example, the mission statement on their website reads, “Use business to inspire and implement solutions to the environmental crisis.” By implementing climate-friendly policies, the company has reduced costs and has more loyal customers.
This article aims to help business owners to understand the many advantages of implementing green policies. These policies will lower your business operating costs and make it easier for your brand to resonate with customers, employees, and potential customers.
Lower operating and fixed costs
Overhead costs can be a significant financial burden for organizations to overcome. Overhead can turn a profitable business into the red. However, organizations like Apple or UPS have reduced their overhead and are generating incredible results.
One way to lower operating costs for a business is to insulate themselves from risks that associate them with variable operating costs and embrace green energy. One example is rather than relying on rates set by the electric company, organizations can employ installing solar energy on their roof. It can dramatically lower energy costs and avoid rate hikes.
To lower energy costs, businesses don’t necessarily need to implement alternative energy strategies. For example, UPS is using an algorithm that routes delivery trucks using proprietary machine learning. UPS is now saving $30 million per mile.
Embrace A society Driven Mission
A recent study from Neilsen shows that a majority of (55 percent) of consumers across 60 countries will pay more for goods sold by brands committed to making a positive impact on the environment. That means that going green can become a form of revenue-generating practice, not just a saving one.
Businesses with a visible social mission will be able to find differentiation in a crowded space market. It will easily appeal to socially conscious consumers.
Another great example is TOMS the shoe, and coffee company that has donated 46 million liters of purified drinking water to people who need it. TOMS’s current evaluation is at $600 million.
Green Energy Tax Credits
The U.S. federal government currently has an incentive when you install solar panels for your business. In addition to saving on operations costs, and growing a network of loyalists, going green can give you access to tax credit and tax deductions.
For example, the United States federal government is currently offering businesses a tax reduction of $1.80 per square foot to businesses that reduce their energy consumption by 50% or less. The same portion of tax code, 179D, allows building owners to take a $.60 per square foot tax deduction if they use energy-efficient products such as cooling, heating, and lighting.
Attract and Retain Employees
The Nielsen study cited above in this article found that 70% of employees much rather work for a “socially responsible” company. In a time where employees have increased power, it’s crucial to retain the best people by implementing environmentally-friendly policies.
Going green can have many positive results. Organizations like UPS and Apple have saved millions of dollars in overhead costs by adopting green energy policies.
Cost reduction aside, going green can help attract new customers and keep customers coming back since people are willing to spend more money to support socially responsible businesses.
Finally, companies that go green can appeal to talented employees and inspire them. If you own a business in Southern California and are interested in commercial solar contact Sunline Energy. We are one of the top solar companies in San Diego.