Why renewable energy matters
What is renewable energy?
The United Nations defines renewable energy as “energy derived from natural sources that are replenished at a higher rate than they are consumed.” Renewable energy, like solar or wind energy, emits less greenhouse gas (GHG) emissions than non renewable sources such as oil, natural gas or coal. Basically we have less risk of running out of a renewable energy source.
Examples of renewable energy sources versus non renewable energy sources
Renewable energy
Examples of renewable energy that use naturally occurring processes to produce energy include:
Solar energy: sunlight converted to energy (photovoltaic) or heat (solar thermal)
Wind energy: uses wind to power turbines, creating electricity
Hydropower: uses water flow (think waterfall) to generate electricity
Geothermal energy: heat generated and stored from the earth’s core that can be used for heating and cooling purposes.
These sources harness energy from non-carbon sources (sun, wind, water, heat).
Non Renewable energy
Examples of non renewable energy sources that, once used up, cannot be replaced include:
Coal
Natural Gas
Oil
Nuclear energy (carbon free, but not renewable)
Coal, natural gas, and oil are all fossil fuels which are made from decomposed organisms like plants, prehistoric animals (like dinosaurs), and algae (organic materials). Over millions of years, high pressure and temperatures form them into what we know as fossil fuels. Since they are made of organic matter, they are made of carbon, just like we are. When burned to generate energy, that carbon is released.
The most common fuel used for nuclear fission in nuclear power plants is Uranium, more specifically U-235. Since Uranium is limited in quantity, it is considered non renewable energy.
Why is renewable energy important?
According to the International Energy Agency (IEA), building operations account for 30% of global energy consumption, and 26% of global energy-related emissions; additionally the use of renewable energy reduces risk of your building being stranded by a lack of non renewable energy. Remember the gas crisis of the 1970’s? (If you don’t remember, no worries, there was one.) To protect our environment, ensure resilience and to mitigate market risk, buildings will need to be powered in more sustainable ways to reduce the amount of emissions we release into the atmosphere and protect our assets from the amount of fuel our planet has. Renewable energy solves both problems, allowing us to harness unlimited sources of power that have zero operating emissions.
What are some myths about Solar?
Solar only works in super sunny places.
Solar works on rainy, snowy, and cloudy days. Even when you can’t directly see the sun, sunlight still reaches the earth, otherwise it would be completely dark! Solar panels run less efficiently when it’s super cloudy out with less direct sunlight, but will still generate energy from the amount of sunlight that makes it through the clouds. Solar panels are still used even in the most cloudy cities around the country like Seattle, Boston, New York, and San Francisco.
You need heat like Las Vegas in August to make solar panels run optimally.
Heat actually decreases the efficiency of solar panels! Solar panels aren’t collecting heat, they’re collecting light and in fact, high temperatures slow down the speed of the electrical current, so solar panels work very well in colder climates. Even in colder temperatures, direct sunlight will cause the temperature of the solar panels to be higher than the air temperature that you feel. For example, the International Space Station (ISS) runs on solar power using 262,400 solar cells (about 27,000 square feet of area) and works with drastically fluctuating temperatures from -250ºF to 250ºF.
If you use solar, it takes light away from plants.
Solar panels can be placed on top of rooftops, in solar fields and more and can be placed in areas that don’t negatively impact crops. In Boulder, CO, Jack’s Solar Garden has covered the farm in solar arrays with crops growing beneath them. Not all crops need the same amount of sunlight and crops that are in shadier areas require less water. Additionally, the plants cool the solar panels above them which increases the efficiency of the panels. Crops aren’t completely shaded either, with many crops that require more height and sunlight growing in between the panels. Lastly, the shade from the solar panels can simulate a natural forest environment where crops don’t grow in large open areas. Combining solar fields and crops can be beneficial for both the solar efficiency of the panels and the crops themselves.
How do I get renewable energy?
Renewable energy can seem expensive and intimidating to implement. Fortunately there are lots of options to add or support renewable at your property or in your portfolio.
Onsite renewable energy production
Onsite renewable energy on buildings is often seen and thought of as solar energy. It’s what most people visualize when you say “renewable energy.” From rooftop solar to solar fields (a group of panels located on the parcel but not on the building), this form of renewable energy is becoming increasingly popular and affordable. Solar energy is less dependent on weather (no wind = no wind power), less disruptive to wildlife (wind turbines can be harmful), easier to install (geothermal requires digging below ground and might not be a viable addition to an existing building), and can be constructed to provide cover to exterior parking spaces, which may be marketed as an enhancement to your property’s parking if parking was uncovered and is now covered. The cost for solar panels is reducing, while the efficiency of the panels is increasing (which means you can have fewer, less expensive panels which produce the same amount of energy as an older larger system that cost more a few years ago). Similar to LED’s the price of solar has dropped. Additionally there are a number of opportunities to help fund renewable energy onsite to eliminate costs and increase NOI.
Purchasing Renewable Energy Certificates (RECs)
Renewable Energy Certificates (RECs) are a market-based way to claim renewable energy without installing or changing any of your systems. Purchasing RECs means you can claim that renewable energy and subtract that amount of avoided emissions from your building or property’s electricity associated emissions. REC’s offset Scope 2 emissions only. Each REC represents one megawatt-hour of electricity. RECs can be purchased through utility providers and may be accepted to comply with Building Performance Standards (BPS) policies (depending on what the policy allows).
Renewable energy on the grid
Depending on where your property is, you might already be using renewable energy without lifting a finger (other than typing)! Electricity from the grid (what you purchase from your utility provider) comes from a variety of sources. Some places have more renewable energy on their grid than others, For example, the City of Seattle uses more hydroelectric power compared to a landlocked city or state that doesn’t have access to that type of energy generation. One BPS policy that is helping properties access renewable energy is New York City’s Local Law 97. Although the 2030 compliance period target requires the building’s energy to be about 50% cleaner than the previous period, the city isn’t expecting building owners to do it all on their own; NYC is investing in more renewable energy generation from the utility providers which will reduce everyone’s emissions without any changes to buildings. Additionally, there are markets in the United States where you can select the mix of energy (renewable and non renewable) up to 100% renewable when you execute your energy procurement agreement with a specific provider. This means you are in effect voting with dollars for renewable even if you are unable to generate onsite.
Renewable energy is an essential part of reducing greenhouse gas emissions and there are many programs today to make renewable energy more affordable and accessible. The opportunity to switch to renewable energy using the currently available financial incentives will not last, and becoming an early adopter can be the financially smart thing to do. It is a fantastic time to evaluate your portfolio to see if you have any opportunities to add renewable to your assets.