In today’s dynamic business environment, building a resilient supply chain capable of withstanding multiple disruptions to ensure long-term success is more critical than ever. Understanding and adapting to complex challenges ranging from cost pressures, technology and automation, and inventory management to sustainability mandates, has never been more vital for commercial and industrial (C&I) businesses. But which solutions offer the right balance of cost, complexity, and impact?

In this guide, we’ll break down five renewable energy solutions ranked by their effectiveness. From green tariffs to on-site generation, we’ll help you identify the best pathway to decarbonise your supply chain, improve operational efficiency, and enhance sustainability.

Understanding energy consumption vs. carbon emissions

Before adopting renewable energy solutions, understanding your business’s energy consumption and associated carbon emissions is crucial. This foundational step requires attaining accurate data, which can be collected through internal tracking or by partnering with credible data providers. Reliable data forms the baseline for measuring progress and scoping out change strategies. Without accurate data, your efforts to make credible claims about your sustainability practices may fall short.

Defining your scope 3 strategy

Once you have a clear understanding of your energy use, the next step is developing a Scope 3 strategy. Scope 3 emissions are indirect greenhouse gas (GHG) emissions that occur in your value chain but are outside of your direct control. These include emissions from purchased goods, services, transportation, distribution, waste, business travel, and employee commuting.

To create a successful Scope 3 strategy, focus on simplicity and actionability. Align your goals with the Science-Based Targets Initiative to tie everything into established global principles. By targeting high-impact areas within your supply chain, you can implement more effective and measurable actions.

The role of renewable energy in supply chain resilience

Integrating renewable energy sourcing into your supply chain can drive sustainability efforts and reduce carbon emissions. The right solution can help you lower operating costs, hedge against energy price volatility, and enhance your brand’s appeal to customers, employees, and investors.

Here are five renewable energy solutions for a greener supply chain, ranked by their effectiveness:

Solution 5: Purchasing unbundled Renewable Energy Guarantees of Origin (REGOs)

Purchasing unbundled REGOs allows you to support renewable energy projects globally and reduce Scope 2 emissions, the indirect greenhouse gas (GHG) emissions associated with the purchase of electricity. An unbundled REGO is a certificate that is sold separately from the power it represents. Each REGO represents 1 MWh of renewable electricity generation, letting companies indirectly contribute to renewable energy development.

• Complexity: Low
• Cost: Low
• Impact: Low

Solution 4: Opting for green tariffs

Green tariffs are bundled products offered by local utilities or retailers including electricity and the associated Renewable Energy Certificates (RECs). This straightforward choice allows companies to support renewable energy while simplifying procurement.

• Complexity: Low
• Cost: Low to Medium
• Impact: Low

Solution 3: Corporate Power Purchase Agreements (PPAs)

Corporate PPAs allow businesses to purchase renewable electricity directly from generators at competitive prices. This approach offers long-term price stability and direct support of renewable energy projects, though it requires more complex negotiations and agreements.

• Complexity: Medium
• Cost: Medium to High
• Impact: Medium to High

Solution 2: On-site renewable generation – self-funded

Generating renewable electricity on your own premises involves purchasing solar panels, wind turbines, or other technologies. While this method requires significant upfront investment and technical complexity, it offers full control over renewable energy production and high impact.

• Complexity: High
• Cost: High
• Impact: High

Solution 1: On-site renewable generation – through PPA

Partnering with companies like Zestec, allows commercial and industrial businesses to install, own, and operate renewable energy systems on-site through a Power Purchase Agreement (PPA). This method enables the purchase of electricity directly from the on-site system, offering cost savings, reduced complexity, and greater control over energy production without the upfront investment.

• Complexity: Low to Medium
• Cost: Low
• Impact: High

Case Study: Bombardier’s rooftop solar PV system

A prime example of successful on-site renewable generation is Bombardier, a world-leading business jet and military aircraft manufacturer. Located in Biggin Hill, its London service centre features a 1.25 MW rooftop solar PV system developed under Zestec’s fully funded PPA model. This system generates approximately 1,133,000 kWh of electricity annually, reducing 255 tonnes of carbon emissions.

Key Metrics:
• Capacity: 1.25 MWp generating 1,133,000 kWh
• Electricity Cost Reduction: £84,825
• CO2e Reduction: 255 Tonnes
• 1st Year Discount on Tariff: 38%

The project, executed with minimal disruption to Bombardier’s operations, highlights the significant benefits of renewable energy integration. Zestec’s expertise ensured the system met high specifications while protecting airport privacy and daily processes.

How Zestec can help you

Choosing the right renewable solution to ensure a greener supply chain for your business, requires understanding your business’s energy and carbon consumption and defining a clear Scope 3 strategy. Factors such as available capital, internal investment philosophies, and your appetite for complexity and impact will influence your decision.

Partnering with Zestec ensures you adopt cost-effective, sustainable energy solutions tailored to your business needs. Let’s discuss how renewable solutions can fit into your business strategy.

Conclusion

A resilient supply chain is essential for business success, and integrating renewable energy solutions is a powerful way to achieve this. From purchasing unbundled REGOs to on-site renewable generation through PPAs, each option offers unique benefits and challenges.

Understanding your energy consumption and carbon emissions, defining a Scope 3 strategy, and selecting the right renewable energy solution will position your business for sustained success. Partnering with experts like Zestec ensures you make informed decisions that enhance your sustainability efforts and operational efficiency.

Ready to take the next step?

Contact Zestec today to explore how renewable energy solutions can support your supply chain development and resilience.

Speak to our team on: 01202 018 800
Email us at: info@zestecgroup.co.uk

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