There is no one-size-fits all approach to incorporating sustainable energy into a business. Each company must assess its specific energy needs, operational constraints, and long-term goals to develop a tailored strategy.

Kyle Durham, Sustainability Head FNB Commercial, shares key considerations unpacked in FNB’s sustainable energy white paper - based on the Bank’s experience in developing solutions for clients across various sectors.

Agriculture

• Most farms have direct connections to Eskom, and these connections can be at risk if Eskom views the user as non-compliant. It is important for agricultural installations to ensure that their legal compliance is well-established, which can add to project lead times and should be built into planning.
• Eskom connections allow for electricity banking – a key consideration for agricultural operations, which tend to have seasonal energy demand.
• Because farming often takes place in rural areas, there is an increased risk of unplanned outages, which can cause operational interruptions. It’s important to consider backup power sources such as generators or batteries.
• Because farmers tend not to have a large amount of available roof space, it is worth investigating the possibility of solar installations on irrigation dams – a technique which also reduces evaporation.

Real estate

• The load profile of real estate – particularly retail property – tends to correspond closely to solar availability, with hours of operation falling mainly over daylight, and air-conditioning requirements rising alongside sunny conditions. This means that these solar installations typically have the best returns on investment.
• Real estate developments tend to have ample roof space, which makes the installation of solar panels relatively simple and cost-effective. This typically results in the payback period for a grid-tied solar system without batteries of around two to three years.
• Real estate companies are increasingly setting up their solar-generation capacity under a standalone company. This allows each portion of the business to pursue their own strategy and optimise their returns.
• Tenants, many of whom now have their own transition pathways to conform to, are increasingly cognisant of landlord energy profiles, and increasingly asking for renewable guarantees in their contracts.
• Energy solutions go hand-in-hand with energy-efficiency initiatives, which property owners should be actively pursuing.

Manufacturing

• Manufacturing is more demanding from an energy-storage perspective. Many industrial machines require large instantaneous load, which drops off after milli- to nanoseconds. These spikes in demand need to be accommodated by specialised batteries in order to prevent damage to machinery.
• If an entire factory comes online at a certain time each day, municipalities might levy a demand charge which is triggered if a certain threshold is exceeded. Some energy solutions can be tailored to buffer load, which is one way of reducing those charges.
• Power quality is of crucial importance for many manufacturers, with even miniscule power interruptions risking equipment damage or costly interruptions.
• 24/7 manufacturers will need a mix of energy sources to ensure affordable, dependable, and high-quality energy supply.

Every business is unique

The size, type and ambitions of a business determine the specific energy requirements, and therefore the applicable range of solutions the business should evaluate. For some businesses, energy availability is a convenience. For others it is business critical. A key consideration is the distribution of energy demand over time – whether that’s over the course of a day or a year.

The key takeaway is to consult with a partner who understands the range of solutions available, and the potential ramifications of each.

Businesses can get more information on the trends, challenges and opportunities facing South African businesses through FNB’s sustainable energy white paper.