As technology has evolved in the renewable energy sector, opting for solar energy has become increasingly common in industries where coal is the main source of power generation. Numerous studies have shown that electricity produced by coal-fired power plants is more expensive than electricity produced by solar energy.
Moreover, solar energy is green energy which brings sustainability. Hence, contributing to the betterment of the environment by cutting down the carbon emissions is another important factor for firms switching towards solar.
The benefits of using solar energy over coal
The majority of people are already aware of the drawbacks, such as the increase in greenhouse gases brought on by coal usage. It includes significant pollution and is an inadequate resource that will gradually disappear.
Solar energy systems use an abundant supply of sunlight and can be installed on roofs, ground, or even car parking. Solar is a non-polluting source of green energy, which is a significant advantage for any large-scale organization. In contrast, the production of fossil fuels like coal degrades the environment. Many users might not be aware that using fossil fuels, in addition to producing greenhouse gas emissions, also causes the water supply to deteriorate and erode.
Pakistan has also taken some initiatives to reduce emissions of greenhouse gases. Due to this, Pakistan also participated in the 26th Conference of the Parties (COP26) to address critical issues such as climate change and its financial consequences.
Solar Power Plants: An affordable option for the C&I Sector.
The following important arguments demonstrate that solar power plants are less expensive than coal-fired power plants.
Solar energy is more environmentally friendly than non-renewable sources like coal and fossil fuels. As a result, electricity produced by a commercial rooftop solar system does not release greenhouse gasses and protects the environment from damaging carbon emissions.
No Capital cost in case of PPA
The PPA contract helps companies to avail solar energy supply without paying any capital cost for installing it on their land. So, the cost of installing on land gets erased. Shams Power’s expert team maintains a precise schedule for all operational maintenance. Throughout the PPA contract, our services will also include cleaning and maintaining the solar system.
Low Costs of Labour
Pakistan has the lowest labour costs, allowing the solar sector to hire many people, resulting in project completion at the absolute lowest pricing and making solar power plants less expensive than coal-fired power plants.
Price Reduction
The price sensitivity has given solar power plants the advantage. The cost of solar energy is determined by the complete analysis of the commercial solar power plant. Crucial parts like solar panels, inverters, and junction boxes are available for significantly less money, even if bought from international suppliers, compared to a coal unit’s energy production. Moreover, if the organization is getting solar energy under a PPA contract, it will only have to pay discounted rates for each energy unit consumed. Therefore, price sensitivity is a major factor that explains why solar is preferable over coal.
Available for the future
Energy Providers like Shams Power are supplying solar power plants at half the cost of coal. Energy storage will be essential in the upcoming years, so coal is scarce, and solar is an abundant power source.
In this regard, the government is also helping the C&I sector realize its long-term goal of elevating the solar industry to the next level.
Hence, the State Bank of Pakistan (SBP) recently announced that it will extend the Financing Scheme for Renewable Energy for two years, which will last up to June 30, 2024.
Shams Power
We provide solar services, including designing, financing, installing, checking, and continuous maintenance for your solar energy plants. We facilitate clients with lucrative solar opportunities so that they can run their businesses and contribute to the environment simultaneously.
For more details, please feel free to contact us here.