With its tropical climate and abundant sunlight year-round, Asia is quickly becoming a prime region for harnessing solar energy. According to recent reports, solar capacity in Southeast Asia grew by 20% in 2023 alone, bringing the total installed capacity to over 28 GW. Vietnam is leading the region, with more than 19 GW of solar capacity, making it the largest solar market in Southeast Asia.
Other countries, including Thailand and the Philippines, have grown significantly, boasting around 3 GW of solar capacity each. Projections indicate that renewable energy capacity is expected to increase by 73% from 2023 to 2028, reaching around 430 GW with ASEAN countries expected to contribute 14% to this growth, or 60 GW.
As more businesses in Asia shift towards solar power, the financial incentives behind this transition are becoming increasingly apparent. Beyond the environmental benefits, solar technology offers a range of financial advantages driving its adoption. In the following sections, we will delve into how businesses can capitalise on these financial gains.
How Solar Energy Solutions can Benefit Businesses
1. Immediate Cost Savings on Energy
One of the most direct financial benefits of solar energy for businesses is the immediate reduction in energy consumption from the grid. Experts have found that solar panel installations allow businesses to reduce electricity costs by at least 25%. This lowers overhead costs and frees up cash.
In regions where electricity prices fluctuate, particularly in Asia, these cost savings can be even more substantial, creating a more stable financial outlook for businesses.
2. Zero CAPEX Solar Solutions
Under the zero capital expenditure (CAPEX) model, businesses can switch to solar energy without any upfront investment, making solar accessible and financially attractive.
Under this model, the solar provider covers the costs of purchasing, installing, and maintaining the solar equipment. The business, in turn, only pays for the energy it consumes, typically through a Power Purchase Agreement (PPA) or similar arrangement.
Here’s how it works:
- No Upfront Cost: The solar provider funds and installs the solar system, eliminating the need for the business to pay anything upfront.
- Energy Savings: The business agrees to purchase the energy produced by the solar system at an agreed tariff, often lower than the cost of brown energy from the grid, resulting in immediate energy cost savings while utilising greener energy.
- Ongoing Maintenance: The solar provider handles all maintenance and system monitoring, ensuring optimal performance without additional costs or management requirements for the business.
- Long-Term Savings: With high-quality solar panels designed to last 20 years or more, the business secures predictable, low-cost energy for decades, shielding itself from future electricity price increases and improving cash flow.
Through this zero CAPEX approach, businesses can enhance profitability, support sustainability goals, and enjoy stable energy rates, all with minimal involvement and zero initial investment.
3. Hedging Against Market Volatility
One of the key advantages of solar energy is its ability to provide businesses with stable and predictable energy costs. Through solar Power Purchase Agreements (PPAs) companies can lock in energy prices over long-term contracts.
This stability is valuable in volatile markets, where electricity prices fluctuate due to factors such as fuel supply disruptions or policy changes. By securing long-term solar energy rates, businesses shield themselves from these unpredictable spikes in electricity costs.
In addition, adopting solar energy allows companies to maintain a higher degree of control over their energy expenditures by reducing reliance on fluctuating electricity markets. Solar installations and financial models like PPAs offer businesses fixed energy costs for long periods, often 10 to 25 years. This helps businesses mitigate the risks associated with rising fossil fuel prices and unpredictable energy market shifts.
All of this helps companies make more accurate financial projections, allowing for better budgeting and resource allocation, which are essential for long-term planning.
4. Enhancing Corporate Sustainability and Brand Value
Besides the clear financial benefits that come from adopting solar energy, companies can also benefit from a lowered carbon footprint, demonstrating their strong commitment to sustainability.
Taking such a proactive approach helps improve the company’s reputation and improves its appeal to eco-conscious consumers, investors, and partners. Research has shown that companies with green initiatives often outperform competitors in terms of brand loyalty and market differentiation.
For example, a study by Double the Donation found that 77% of consumers surveyed reported that they preferred purchasing from companies with corporate social responsibility (CSR) initiatives.
By aligning with global sustainability trends and showcasing their green credentials, businesses can also stay ahead of regulatory changes, ensuring compliance with evolving carbon emission and energy efficiency regulations.
Incorporating solar energy into business operations not only helps meet these standards but also strengthens the brand’s image, demonstrating leadership in innovation and responsibility.
How Solar Energy Companies Have Benefited Businesses
Across Asia, businesses are adopting solar energy to achieve both financial and environmental gains. These case studies from Vietnam, Malaysia, and Thailand highlight how solar energy can drastically reduce operating costs, improve profitability, and enhance sustainability practices for companies in various industries.
| Country | Description |
| Vietnam | Chin Well Fasteners, a manufacturing company in Vietnam, installed a 6 MWp solar rooftop system, reducing its energy costs and achieving significant savings. This project also helps the company reduce its carbon footprint. |
| Malaysia | Ecolite, a health and wellness company in Malaysia, adopted solar energy with a rooftop installation. This project helped lower their operating costs, contributing to the company’s sustainability goals while passing savings on to consumers. |
| Thailand | NTN and NTPT, leading composite manufacturers in Thailand, completed a solar rooftop installation, reducing energy costs and boosting sustainability. This move has improved profitability while significantly cutting their carbon emissions. |
Solar Energy – A Strategic Investment for Asia’s Businesses
Solar technology offers a range of significant benefits, from immediate energy cost reductions to enhanced control over energy expenditure. With the availability of flexible financing options like PPAs, businesses can now access solar solutions with minimal upfront costs, further making the shift to solar an attractive option.
As the demand for renewable energy grows, it’s clear that businesses in Asia can significantly benefit from investing in solar technology — both now and in the future. To learn more about how TotalEnergies ENEOS can help your business invest in the future, reach out to us here.