Solar Energy: The Solution for High Electricity Prices and Sustainability in Production

Facing the highest electricity prices in Europe, manufacturing companies in Germany are confronted with a critical challenge. Competitiveness is threatened, and many firms are relocating their production abroad to escape high energy costs. However, there is a sustainable and forward-looking solution that not only reduces costs but also supports the achievement of sustainability goals: investing in solar energy. This article demonstrates how a 1 MWp solar system can achieve a Return on Investment (ROI) within five years and how photovoltaics can enhance a company’s Corporate Social Responsibility (CSR).

The Potential of a 1 MWp Solar System

A 1 MWp (Megawatt Peak) solar system can generate approximately 1,000,000 kWh of electricity annually, depending on location and sunlight hours. This is enough to cover the electricity needs of a medium-sized manufacturing company. With a feed-in tariff of 7 cents per kWh and a self-consumption rate of 70%—made realistic through the use of storage systems—the following savings and revenues are achieved:

• Annual Self-Consumption: 700,000 kWh x €0.24 (electricity costs) = €168,000
• Annual Feed-in to the Grid: 300,000 kWh x €0.07 = €21,000

This results in annual savings and revenues totaling €189,000.

Investment Costs and Payback

The investment costs for a 1 MWp solar system, including storage, range from €800,000 to €900,000. With annual savings and revenues of €189,000, the system pays for itself within approximately 4.2 to 4.8 years, depending on the actual installation costs. After this time, the solar system begins to generate pure profit. In an environment of rising energy costs, solar energy ensures a stable and long-term predictable cost structure.

Longevity and Warranties: A Secure Investment

Modern solar modules have a lifespan of 25 to 40 years, with most manufacturers offering a performance guarantee of 80% after 25 years. Storage systems are also designed for long lifespans. This means that after the payback period, at least 20 years of nearly free electricity can be produced—a real competitive advantage for manufacturing companies.

CSR and Solar Energy: Sustainability Meets Profitability

With the introduction of the Corporate Sustainability Reporting Directive (CSRD), sustainability reporting becomes mandatory for companies in the EU. Photovoltaic systems offer an excellent opportunity to strengthen CSR strategies and position the company as future-oriented. Here are some benefits that solar energy brings to CSR:

  • Reduction of CO₂ Emissions: Solar energy helps companies significantly reduce their carbon footprint, a central criterion in sustainability reporting under CSRD.
  • Energy Independence and Resilience: Companies become less dependent on external energy suppliers, enhancing resilience against market price fluctuations.
  • Sustainable Supply Chain: By using renewable energy in production, companies can make their supply chains more sustainable and highlight this in their CSR reporting.
  • Reputation and Brand Value: Strong commitment to solar energy not only strengthens CSR but also increases a company’s brand value and reputation. This can be used in marketing to position the company as a leader in sustainability.

Practical Examples: Companies Already Rely on Solar Energy

Several leading German companies have already recognized the benefits of solar energy and successfully integrated it into their production processes:

• BMW uses solar energy in Leipzig to cover part of the electricity demand for the production of electric vehicles.
• BASF has installed a large solar system in Ludwigshafen, which reduces CO₂ emissions and lowers energy costs.
• Daimler operates solar installations at several locations, including the world’s largest industrial rooftop solar system in Sindelfingen.
• thyssenkrupp uses solar energy at its production sites, underscoring its commitment to sustainable energy.

These examples show that solar energy is already a reality in the German industry, actively contributing to competitiveness and improving CSR performance.

C2sun Experts' Conclusion

Act now to secure your company’s future!

Investing in a photovoltaic system is not only a smart economic decision but also an important step towards ensuring your company’s competitiveness and sustainability. With a payback period of less than five years, a lifespan of 25 to 30 years, and significant benefits under the CSRD, there has never been a better time to invest in solar energy and secure Germany as a business location. We are happy to advise you on the implementation of your solar project.