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New York manufacturers face rising electricity prices and increasing pressure to meet sustainability expectations — especially from corporate customers and ESG-minded buyers. Renewable energy, especially solar, offers a proven way to slash utility costs, secure long-term rate stability, and win more business.
Clean, renewable energy sources like commercial rooftop solar have the power to completely transform manufacturing business practices, support cost reduction, and boost bottom lines. While we’re seeing megacorporations like Apple, Ikea, Target, and Walmart make the switch, local manufacturers in their supply chains have been slower in making the pivot.
As an New York State policy expert and solar industry leader for over 22 years, we’re shedding some light on why it’s easier than ever, and more profitable than ever, for New York manufacturers to adopt clean energy practices.
What New York State's Renewable Energy Goals Mean for Manufacturers
Transforming manufacturing business practices through clean, renewable energy sources, such as solar, is just one target of New York State’s aggressive climate goals. New York State aims to see 70% of its electricity sourced from renewables by 2030 and achieve 100% emissions-free electricity by 2040.
This means that there is high visibility and pressure on NYS businesses as a whole to consider clean energy options.
Nationally, the Climate Bill (The Inflation Reduction Act) introduced some big incentives for corporations to switch to clean renewable energy, including a 30% Federal Tax Credit. That’s on top of equipment depreciation and supplemental grant opportunities offered for rural and agricultural manufacturing businesses.
When combined with other incentives, these can cover up to 100% of the cost of going solar.
Since renewable energy sources, such as solar, have the potential to completely revolutionize the manufacturing industry as a whole, and there are huge incentives available, clean energy is slowly but surely becoming the standard for corporate sustainability and responsibility.
So, what's the impact on New York State manufacturers?
The trickle-down effect will, or perhaps is already being felt. Not only are operating costs continuing to rise year over year—a biggie being electricity—but there is increasing pressure on the supply chains of large national corporations (in particular those we just named) to comply with sustainability goals to compete and stay in the game.
In New York, the manufacturing business is seeing a steady decline. Richard Deitz, economic research advisor at the New York Fed, commented, “Manufacturing conditions remained sluggish in New York state in May, with activity and orders continuing to decline” regarding the latest results of the Federal Reserve Bank of New York’s Empire State Manufacturing Survey.
Renewables have the power to make New York State manufacturing businesses more competitive and profitable. And there are more ways than one to adopt clean manufacturing practices.
Ways to Embrace Renewable Energy in Manufacturing
Here are three exciting ways manufacturers can embrace renewables to forge a cleaner, more sustainable future:
Solar for Manufacturing
The manufacturing industry and all of its unique subsectors use a great deal of electricity. As production efforts increase to meet customer needs, the demand for electricity continues to steadily increase.
Renewable energy sources, such as solar, are helping manufacturers like Rochester-based Upstate Door and Pourware Inked meet their power needs while dramatically reducing their carbon footprint.
Pourware Inked, in particular, made the switch to solar in order to achieve the cost reductions needed to achieve its expansion goals. Solar helped them accomplish a nearly $50,000 annual savings on their energy bills.
If it weren't for solar, we wouldn't have been able to make that move.
Thermal Systems for Manufacturing Businesses
Although there are several different subsectors within the greater manufacturing industry, nearly all of them require heating of some kind. Heating is an energy-intensive process used for a variety of purposes, including sterilizing, drying, cooking, process heating, and much more. Heating alone can account for a significant portion of a factory or manufacturing facility’s energy use, which can increase the overall cost of doing business.
The vast size and scale of industrial heating provide several promising and practical opportunities for using renewable energy sources, such as solar. Solar thermal technology harnesses the power of the sun to generate clean, cost-effective thermal energy with minimal environmental impact. This energy can then be used to heat water or other fluids and even power cooling systems. Just like their electricity-generating counterparts, solar thermal systems drive business value by reducing utility costs and improving sustainability.
Diversified Clean Energy Sources for Manufacturers
It’s often said that variety is the spice of life, and this notion is a great way to describe how manufacturers use more than one renewable energy source to power their facilities.
Manufacturing plants like GreenSpark customer, Harbec Plastics, use multiple renewable energy sources to power their operations sustainably, reduce costs, increase production, and meet environmental guidelines.
Another great example is Method Soap, which operates a LEED-certified platinum manufacturing facility powered by on-site renewable energy sources, including solar panels and a 23-story wind turbine.
Whether on-site or off-site, commercial solar energy systems are helping manufacturers save big in a number of ways. Not only does solar improve energy efficiency, but it also helps manufacturing facilities and plants increase their energy independence. Solar energy can help manufacturers become completely self-sustaining and meet 100% of their electric load, if not more.
What are the benefits of solar energy for manufacturing businesses in New York?
Manufacturers in New York can improve resource efficiency, significantly reduce energy costs, stay up-to-date with clean manufacturing requirements, stay competitive, create supply chain resilience, and improve the health and safety of their operations by adopting solar energy solutions.
- Resource Efficiency: Adopting clean manufacturing practices involves optimizing resource utilization, minimizing waste generation, and enhancing operational efficiency. By streamlining processes and reducing resource consumption, businesses can lower production costs and improve overall productivity.
- Regulatory Compliance: Clean manufacturing practices often align with regulatory requirements to reduce environmental impact and promote sustainability. By proactively adhering to environmental standards and regulations, businesses mitigate the risk of fines, penalties, and reputational damage associated with non-compliance.
- Health and Safety: Prioritizing clean manufacturing practices fosters a safer and healthier work environment for employees. Minimizing exposure to hazardous substances, pollutants, and emissions safeguards workers’ well-being and reduces the likelihood of workplace accidents and occupational health issues.
- Innovation and Competitiveness: Embracing clean manufacturing fosters a culture of innovation, driving technological advancements and product development. Companies that invest in sustainable practices often gain a competitive edge by offering eco-friendly products and services that resonate with environmentally-conscious consumers.
- Supply Chain Resilience: Clean manufacturing practices extend beyond internal operations to encompass supply chain management. Collaborating with suppliers committed to sustainability and ethical practices enhances supply chain resilience, reduces environmental impact across the value chain, and ensures long-term business viability.
In today’s economy, solar and other renewable energy sources are helping manufacturers stay relevant in a number of ways. In addition to the obvious financial and environmental benefits of clean energy, solar allows manufacturers to outshine their competitors while meeting the needs of their customers more sustainably. Eco-conscious consumers are eager to support companies that engage in ethical business practices, and switching to renewable energy sources can help companies improve their public image.
Explore Solar Powered Success Stories from Other New York Manufacturing Businesses
Why the Time is Now for NY Manufacturers to Switch to Renewable Energy
In addition to dramatic cost reductions, clean energy sources provide a stable source of electricity, helping manufacturing businesses hedge against future energy price fluctuations and turn their business expenses into assets.
Right now, there are commercial federal and state incentives available to NY manufacturers that can cover up to 100% of their costs to go solar. If this is surprising, and sounds too good to be true. It isn’t. Pourware Inked is a prime example. Not only were they able to use solar to save nearly $50,000 annually on energy expenses, but in 2 years they are on track to recoup 100% of their investment costs through current incentives.
In our recent webinar, we share real-world case studies, an overview on the business case for solar, and how you can leverage current incentives.
Sourcing Renewable Energy: The Importance of Expertise
At GreenSpark, we’ve dedicated over two decades to supporting businesses and homeowners in New York State make the switch to clean, renewable energy. As experts in NYS policy and incentives, solar industry best practices, and a vetted industry leader, we make the transition seamless for manufacturing businesses looking to harness the power of renewable energy.
Let us help you pave the way to increased profits and a brighter, greener future. With historic commercial solar incentives on the table, the time is now to switch to clean, renewable energy. Ready to discover how solar can revolutionize your business operations?
