What are the most common renewable energy policies for commercial buildings?

Renewable energy is not only good for the environment, but also for your business. By using clean and sustainable sources of power, you can reduce your carbon footprint, save on energy costs, and enhance your reputation. However, to make the most of renewable energy, you need to be aware of the policies and incentives that apply to commercial buildings. In this article, we will explore some of the most common renewable energy policies for commercial buildings, and how they can benefit you.

1 Net metering

Net metering is a policy that allows you to sell any excess electricity that you generate from renewable sources, such as solar panels or wind turbines, back to the grid. This way, you can offset your energy bills, and even earn some money. Net metering is available in most states, but the rates and rules may vary depending on your utility and location. To take advantage of net metering, you need to have a bi-directional meter that can measure both the electricity you consume and produce.

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Leonard Teo

Technical Specialist | Driving Energy and Water Usage Reduction | Certified Energy Manager (SCEM) | Energy Transition | Decarbonisation | Water Circularity | Sustainability Strategy
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Net metering is a system that allows buildings with renewable energy sources, such as solar panels or wind turbines, to sell any excess electricity they generate back to the grid. This means that when the building's energy production exceeds its needs, the excess energy is fed back into the grid and the building owner is credited for the amount of electricity generated. This credit can then be used to offset the building's electricity bills during periods when the building is consuming more energy than it is producing. Net metering is an important tool for incentivizing the adoption of renewable energy sources, as it allows building owners to recoup some of the costs associated with installing and maintaining these systems

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2 Renewable portfolio standards

Renewable portfolio standards (RPS) are policies that require utilities to supply a certain percentage of their electricity from renewable sources by a specific date. For example, California has an RPS of 60% by 2030, and 100% by 2045. RPS can create a market demand for renewable energy, and encourage utilities to invest in clean power projects. As a commercial building owner, you can benefit from RPS by purchasing renewable energy certificates (RECs) from certified generators, or by installing your own renewable energy systems.

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Leonard Teo

Technical Specialist | Driving Energy and Water Usage Reduction | Certified Energy Manager (SCEM) | Energy Transition | Decarbonisation | Water Circularity | Sustainability Strategy
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enewable portfolio standards (RPS) are policies that require a certain percentage of a state or region's electricity to come from renewable energy sources by a certain date. These standards are typically set by state legislatures or regulatory bodies and are designed to promote the adoption of renewable energy sources such as solar, wind, geothermal, and biomass. The european renewable energy directive is a broad based law that requires EU members to achieve a certain percentage of its energy consumption from renewable sources by a certain date. While it does not prescribes electricity specifically, the potential of using renewable electricity is huge in terms of renewable energy (the other being biogas).

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3 Feed-in tariffs

Feed-in tariffs (FITs) are policies that guarantee a fixed price for the electricity that you generate from renewable sources, and feed into the grid. FITs are usually higher than the retail price of electricity, and can provide a stable and long-term income for renewable energy producers. FITs are more common in Europe and Asia, but some states and municipalities in the US also offer them. To qualify for FITs, you need to sign a contract with your utility or a third-party provider, and meet certain technical and environmental standards.

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Leonard Teo

Technical Specialist | Driving Energy and Water Usage Reduction | Certified Energy Manager (SCEM) | Energy Transition | Decarbonisation | Water Circularity | Sustainability Strategy
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Feed-in tariff is a policy mechanism designed to promote the adoption of renewable energy sources by providing a guaranteed price for renewable energy generation. Under a feed-in tariff, renewable energy generators are paid a fixed rate for every unit of electricity they generate, regardless of whether they consume the electricity themselves or sell it back to the grid. This provides a financial incentive for the installation of renewable energy systems and helps to reduce the cost of renewable energy technologies over time. In Germany, for example, the introduction of a feed-in tariff in 2000 helped to spur the growth of the country's renewable energy industry,

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4 Tax credits and rebates

Tax credits and rebates are policies that reduce the upfront cost of installing renewable energy systems, such as solar panels or geothermal heat pumps. Tax credits are deductions that you can claim on your federal or state income taxes, while rebates are cash payments that you can receive from your utility or a government agency. The amount and duration of tax credits and rebates may vary depending on the type and size of your system, and the location of your building. To claim tax credits and rebates, you need to keep the receipts and documentation of your system, and follow the eligibility and filing requirements.

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5 Green leases

Green leases are agreements between landlords and tenants that include clauses and incentives to promote energy efficiency and renewable energy use in commercial buildings. For example, a green lease may specify how the energy costs and savings are shared, how the building performance is monitored and verified, and how the renewable energy systems are maintained and operated. Green leases can help both parties to reduce their environmental impact, improve their comfort and productivity, and save money. To negotiate a green lease, you need to communicate your goals and expectations, and seek legal and technical advice.

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6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Marcin Ziemski
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Turn the lights and air conditioning off when areas are not in use. Schedule and design activities (and design the space) throughout the building accordingly. This is one of the biggest and easiest efficiency impacts that is often overlooked.

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What are the most common renewable energy policies for commercial buildings?

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1 Net metering

2 Renewable portfolio standards

3 Feed-in tariffs

4 Tax credits and rebates

5 Green leases

6 Here’s what else to consider

Energy Management

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