South African businesses have a tough road to success. Between their ongoing battle with an unreliable power supply, rising electricity costs, the pressure to reduce their carbon footprint, and the usual economic challenges, it’s no wonder that many find themselves teetering on the edge of just making it.  

With all these obstacles, business owners need to be even more strategic if they want to survive. One key factor that businesses should explore is renewable energy. It seems that investing in renewable energy is becoming an increasingly attractive option, opening the door to several significant benefits.  

Here are some key ways in which your business can benefit from making the switch to renewable energy sources. 

Lower Energy Bills 

A major advantage of renewable energy is the potential to significantly reduce your energy costs. Among others, solar is now much cheaper than fossil fuels in many parts of the world, including South Africa. By generating your own renewable electricity, your business will be able to avoid the fluctuations in traditional energy prices and lock in stable, predictable rates for years to come. To say nothing of the benefit of more reliable energy – which we’ll unpack in this review. 

Improved Energy Security 

Worse than the rising cost of energy, in our opinion, is the overall impact that loadshedding and unplanned power outages can have on a business. In short, these events have proven to have a crippling effect on businesses by causing lost productivity, spoiled inventory, and damage to equipment. However, when your business relies on renewable energy systems, especially when combined with battery storage, you have access to a reliable backup power supply and can help insulate your business from disruptions to the grid.  

Essentially, energy security is crucial for maintaining operations and serving customers, which renewable energy has the power to supply. 

Reduced Carbon Footprint 

In recent years there has been a growing public awareness of climate change. It started with a little bit of concern for the polar bears, but now consumers and stakeholders alike are increasingly demanding that businesses take action to reduce their environmental impact.  

With that in mind, by transitioning to renewable energy (and making it a matter of public information that you’ve done so), your company can significantly lower its greenhouse gas emissions and demonstrate a commitment to sustainability. A few welcome fringe benefits include the fact that this shift can enhance your brand reputation, as well as attract eco-conscious customers. 

Tax Incentives And Rebates 

Another key motivational factor is the tax advantage. You see, the South African government offers attractive tax incentives for those businesses that decide to invest in renewable energy projects. From what we can see, companies can claim a 125% tax deduction on capital expenditures for renewable energy installations – according to the draft Taxation Laws Amendment Bill 2023. If you think about it, this could allow you to offset a significant portion of your upfront costs and accelerate your return on investment. 

Job Creation And Economic Benefits 

From a more altruistic perspective, engaging with the renewable energy sector can contribute to the creation of more jobs. Essentially, by supporting this industry, your business can contribute to economic development and job creation in your local community and across the country. This isn’t an empty promise – according to a study by the Council for Scientific and Industrial Research (CSIR), renewable energy development could actually create up to 300,000 new jobs by 2030.   

Feeling Informed? 

Slowly but surely the cost of renewable technologies is becoming more affordable and more accessible. Arguably, there has never been a better time for South African businesses to embrace renewable energy, and by taking advantage of the benefits outlined above, your company can save money, increase resilience, reduce its environmental impact, and position itself for long-term success in the clean energy economy.  

Don’t forget that AA Inform can assist you with all sorts of information, especially when it comes to all things solar. Whether you need practical advice on where to start or more information regarding solar financing options, we are here to make sure that you are well informed. 

Click here to explore a whole new world of help. or you, we are here.