Using solar energy makes great business sense. Instead of paying high electricity bills, businesses and organisations can lower their operating expenses by turning to clean, reliable solar energy available everywhere the Sun shines.
On the way towards sustainability, global communities are realising the importance of energy independence and the use of solar power as an alternative energy source. March 11, for example, is designated as Solar Appreciation Day. It is an occasion to learn about solar energy and technology, while Solar Appreciation Day is celebrated around the world as people recognise progress in energy independence and sustainability.
In the corporate world, a large number of companies have turned towards solar energy mainly for long-term savings in the operating budget. In Thailand, among businesses that have implemented solar systems as part of their electricity generation are plastic packaging manufacturers Chinnavorn Plast and Success Plast.
Behind these players in the solar ecosystem is the U-Solar programme, Asia's first integrated solar energy financing platform across UOB's key Southeast Asian markets. Apart from providing financing solutions to attract solar developers and contractors, the programme also supports the "green" agenda of homeowners, businesses and regional governments, in building a sustainable ecosystem and partnership.
Launched in Thailand in 2020 by UOB Thailand, U-Solar is also the first solar industry ecosystem in Asia to power the development and adoption of renewable energy across the country. Through the U-Solar initiative, the bank connects businesses and consumers across the entire solar power value chain and helps each in their transition to a low-carbon economy. Besides Thailand, the programme is also available in Indonesia, Malaysia and Singapore.
The Thai government has also been active when it comes to promoting renewable energy use -- with a goal to increase the share of Thailand's total renewable energy power generation from 10% in 2019 to 37%, an equivalent to 20,755 megawatts (MW), in 2037. To achieve such a goal, the Ministry of Energy has previously implemented several schemes, such as the feed-in premium and feed-in tariff scheme, to stimulate investments in the renewable energy sector.
The Ministry of Energy also launched the 700MW Community-based Power Plant programme to promote power generation from renewable energy resources, including biomass and biogas as well as hybrid systems comprising bio-based, wind and solar energy.
The U-Solar programme is aligned with the Ministry of Energy's Energy for All policy that aims to enable the local community, especially low-income residents, to participate in the production of renewable power sources to earn more income. Not only does the programme accelerate the development and deployment of renewable energy but also helps to boost local livelihoods.
"With the Thai government driving the growth of the renewable energy sector, we believe the U-Solar programme can help contribute to the progress of the solar power industry in Thailand. By encouraging the development and adoption of solar power among local corporates and consumers, we can play a part in building a greener future for the country," said Tan Choon Hin, president and chief executive officer, UOB Thailand.
To support the growth of the solar power industry, UOB provides solar project developers with solutions in green financing, project loans and portfolio financing, as well as cash management services. For Engineering, Procurement Construction (EPC) contractors, UOB offers end-to-end contract-based financing solutions, from bid bonds and letters of credit issuance to performance guarantees and working capital facilities.
To promote the adoption of solar power by the end-users which include companies and consumers seeking solar power solutions for their factories, offices or homes, U-Solar also offers a one-stop shop for them to plug easily into the services provided by UOB's partners across the region. They can also tap UOB's financing solutions for the installation, operation and maintenance of solar power systems based on their business or personal needs in making the switch to solar power.
There are 31 U-Solar partners across UOB Southeast Asian markets. In Thailand alone, solar developers and EPC partners include Banpu Next, Bangkok Solar Power (BSP), Berkeley Energy Commercial Industrial Solutions (BECIS), KG Solar and Sitron Power. These business alliances help oversee the installation, commissioning, operations and after-sales service packages for solar power systems for businesses and homeowners.
Following the success of the U-Solar programme, UOB Thailand recently rolled out U-Solar 2.0, an expansion of the U-Solar programme, adding nine industry-leading solar equipment suppliers as new programme partners. The enhancement aims to empower the industry to scale up and accelerate solar energy development in the country with end-to-end support across the entire solar value chain.
"Since U-Solar's launch in early 2020, UOB has granted approximately 3.12 billion baht worth of green loans, successfully enabling more than 1,800 Thai businesses and homeowners to switch to solar energy," said Amporn Supjindavong, executive director, head of Commercial Banking, UOB Thailand.
Collectively across the region, the U-Solar programme has contributed to the reduction of more than 186,000 tonnes of greenhouse gas emissions, an equivalent to over 40,000 passenger cars taken off the road for a year or more than 3 million tree seedlings grown over 10 years.
Advantages of solar for business
- Upfront cost but long-term savings
The biggest barrier to entry for solar power is the relatively large upfront cost. Businesses may be hesitant about such an upfront investment or unable to afford large-scale installations at all. However, there are many financing options available for commercial solar installations.
The payback period of photovoltaic solar panels varies depending on several factors including installation scale, local climate and energy consumption. Solar installations see a payback period of three to five years. As photovoltaic solar cells have an average lifespan of 25 to 30 years, the financial benefits of solar panels would outweigh the upfront for decades of use.
- Off the grid
Reducing the reliance on power from the grid would greatly reduce utility costs. Depending on the power usage trends of a small business, switching to solar and relying less on the grid for power would have major financial benefits. This in turn reduces the demand on the grid, reducing the amount of power generated from the top down typically from non-renewable sources like coal and natural gas.
- Optics
One of the biggest benefits solar panels can bring to the business is how clients or customers subconsciously view them. If a solar panel happens to be visible from outside the business, customers become accustomed to them, knowing how much the business values its utilities at a glance.
Creating signage for businesses can be an easier way to bring awareness to solar installations. With inward and outward-facing displays indicating the business is powered by solar energy, appealing signage can draw in and retain customers who value the business' energy priorities.
Normalising solar panels at businesses customers see every day can change the public's perception of solar panels in other aspects of their lives. When the everyday presence of solar panels becomes normalised, the benefits of their relatively high upfront cost may be more palatable, informing their investment choices and/or voting preferences towards lawmakers who back them. Observing solar panels in comfortable environments can increase social acceptance in broader contexts, like utility-scale solar installations.
Information from earthday.org.
This article is part of a 20-part series that explores what it takes to create and secure a sustainable future. In collaboration with UOB. You can view the whole series here.
