Home 12 Analysis 12 SMEs to shift to solar
Solar panel

SMEs to shift to solar

Should small businesses (SMEs) and households shift towards non-conventional energy sources to meet their energy requirements? What are the gains that the businesses can receive from this shift?  

  • IT adoption in SMEs can happen
  • With uninterrupted power supply through solar, IT jobs can be created in rural areas. 
  • Rural IT hubs can come up
  • It can help build a regional and rural focussed startup eco-system
  • Even the possibility of rural BPO ( Business Process Outsourcing) units will be a reality. 
  • Artisans and handicraftmen can be more effectively linked with the global market through e-commerce platforms such as Amazon, E-Bay for instance. 
  • Rural and cottage industries will be empowered

Cost is a major aspect that prevents the small scale sector from shifting to solar energy. However, Governments and local government authorities (LGIs) can come forward and consider installing solar plants to meet the needs of small and micro industries in traditional enterprise hubs, SME focussed pockets, rural industry concentrated villages/areas. This would certainly create more employment opportunities, enhance economic activities and help SMEs connect to the global market and adopt new technologies. 

Should small businesses (SMEs) and households shift towards non-conventional energy sources to meet their energy requirements? What are the gains that the businesses can receive from this shift?  

Shifting from conventional to non-conventional energy sources is indeed the need of the hour. It makes a lot of economic sense for small and micro enterprises (SMEs), particularly for the businesses and people in the developing world. 

Hilly areas, small islands, deserts and other places in many countries of the world would benefit from solar energy. Desert tourism projects could be a case in this context. 

  • Solar-powered lanterns, refrigerators, air-coolers, and solar cooking stoves can significantly benefit desert tourism projects.   
  • Health sector: Rural primary health centers and clinics would also get benefitted through solar-powered refrigerators.
  •  IT adoption in SMEs can happen
  • With uninterrupted power supply through solar, IT jobs can be created in rural areas. 
  • Rural IT hubs can come up
  • It can help build a regional and rural focussed startup eco-system
  • Even the possibility of rural BPO ( Business Process Outsourcing) units will be a reality. 
  • Artisans and handicraftmen can be more effectively linked with the global market through e-commerce platforms such as Amazon, E-Bay for instance. 
  • Rural and cottage industries will be empowered

 And the list is endless.

Further, if small businesses can get relief from electricity bills, in addition to the uninterrupted power supply, it would make a lot of economic sense for them.

Cost and efficiency 

Prices of solar panels have come down and efficiency levels have gone up over these years, however, there is much reluctance on the part of SMEs, rural industries and common people from opting for solar. 

South Asia, MENA, Africa all have locations where solar and other non-conventional energy sources are needed. Lack of uninterrupted electricity is an issue for the industry, rural entrepreneurs, SMEs, and households. All our gadgets need the power to function.  From computers, mobile phones to power looms, for instance, mobile phones all need electricity to function.

Non-fossil source of energy: Green power

It’s not just uninterrupted power alone. Opting solar is opting for a green source.  A shift to non-fossil fuel electricity such as solar offers significant benefits to our environment.  There are other added benefits too. More jobs that the solar sector can create is just another example.

 The global solar market

According to an industry report by “allied market research”, “the world solar industry is expected to reach $422 billion by 2022”. The report is titled “Solar Energy Market- Global Opportunity Analysis & Industry Forecast. As per that the solar sector is growing at a “CAGR of 24.2%” and it is one sector that is expanding so rapidly everywhere. 

Shifting to solar offers significant benefits to businesses: 

Saving on power cost: Electricity bill can be completely avoided or reduced substantially by adopting solar.Many of the manufacturing hubs where small and cottage industries operate face difficulties due to a lack of uninterrupted power supply. Power cuts and interruptions often act as a significant barrier for small industries in reaching full capacity utilization.

Enhanced productivity: When there is no power cut with off-grid solar power systems, the productivity of SME units can go up. Often power interruptions make the units uneconomical, in many cases labor can be employed more effectively. 

Enhanced mechanization: With Solar power systems put in place in industrial parks, hubs and in small industry concentrated locations/regions, it can possibly encourage traditional units adopting mehanchizaton wherever possible.

Cost is a major concern. It prevents the small scale sector from shifting to solar. In this context, Governments and local government authorities (LGIs) can come forward and install solar plants to meet the needs of small and micro industries in traditional artisan villages, SME hubs, rural industry concentrated villages/areas. 

In addition to that zero-interest loans, tax incentives and all other support to SMEs to be provided by the governments, in order to promote the adoption of solar energy/technologies by SMEs.

This would certainly create more jobs, enhance economic activities and help connect SMEs connect to the global market and adopt new technologies.

P. Koshy <Email: caushie07@gmail.com >


Related posts:

Leave a Reply

Your email address will not be published. Required fields are marked *

*

%d bloggers like this:
Skip to toolbar