RE100 (Renewable Energy 100%): Why Companies Choose Solar?

Our Blogs

With a combined experience of over 250 years and the successful management of 30 MW of solar energy projects, GSER offers the most efficient solutions.

RE100 (Renewable Energy 100%): Why Companies Choose Solar?

RE100 (Renewable Energy 100%)_ Why Companies Choose Solar_ (1)

The worldwide move to sustainable energy it is not just a trend its now adopting speed and RE100 (Renewable Energy 100%) ) is right at the heart of this corporate climate action. RE100 brings together influential businesses, all committed to getting 100% of their electricity from renewable sources. For engineers, sustainability leaders, and particularly energy-intensive industries figuring out how to meet these ambitious targets, one power source keeps coming out on top: solar energy. It’s proving to be the most accessible, quickly scalable, and increasingly smart financial choice for hitting those RE100 renewable energy goals. This isn’t just a popular opinion; it’s backed by solar’s solid technical strengths and its economic sense in today’s decarbonizing world. We’ll break down the engineering, economic, and compliance reasons solar is becoming the go-to for RE100 renewable energy, looking at what it means for everyone from commercial real estate developers to ESG investors, and how we at GSE Renewables help make this vital energy shift happen.

What is RE100?

The Origins and Strategic Imperative of RE100
Back in 2014, The Climate Group and CDP launched RE100, a global corporate initiative to speed up the switch to 100% renewable electricity. The idea was simple: businesses use a lot of power, so their collective clout could really push for a cleaner grid. For companies involved, RE100 isn’t just about being green; it’s a smart strategic move that impacts how resilient their operations are and how they’re seen in the market.

Talk To Us – We’re Here To Help

Key Technical and Market Objectives of RE100 Renewable Energy

The initiative’s goals are designed to make a real difference across the board:

  • Full Renewable Electricity Procurement: Members promise to get 100% of their electricity worldwide from renewables. This means smart energy buying strategies and often, direct investment in their own green power generation.
  • Market Transformation and Policy Advocacy: When RE100 companies demand clean energy, it gets policymakers’ attention, encourages new renewable markets, and supports the grid upgrades needed for more renewables.
  • Stimulating Demand and Technological Innovation: This strong corporate demand fuels fresh ideas in renewable tech, energy storage, and clever buying plans like VPPAs. 
  • Transparency and Performance Benchmarking: Companies report their progress each year through CDP. This keeps everyone accountable and lets businesses see how they stack up against others, which is vital for ESG investors and sustainability chiefs.

Who’s Involved? A Coalition of Technically Advanced and Influential Entities
More than 400 big multinational companies are part of RE100 now, covering all sorts of industries with heavy energy needs:

  • Technology and Data Infrastructure: Think Google, Apple, Microsoft, Meta – companies whose massive data centers are pushing for new ways to buy renewable power.
  • Advanced Manufacturing: BMW Group, General Motors, Tata Motors, Mahindra & Mahindra – manufacturers weaving renewables into complex factory operations.
  • Retail and Supply Chain Logistics: IKEA, Walmart, H&M, Unilever – businesses pushing for renewable use all the way through their global supply chains.
  • Financial and Professional Services: Infosys, Deloitte, Goldman Sachs, Swiss Re – firms showing leadership and creating green finance options.

Here in India, RE100 is really taking off, especially with engineering-focused and large companies. Infosys, Dalmia Cement (Bharat) Limited, Tata Motors, and Mahindra & Mahindra are already deep into their renewable strategies, offering great examples for other Indian businesses.

RE100 and the Role of Renewable Energy

These days, corporate sustainability isn’t just a side project; it needs real numbers to back it up and must be part of the main business plan. Switching to renewable energy, especially through RE100, is a huge piece of this, offering clear wins for sustainability leaders and ESG investors.

ESG Metrics Climate Commitments and Financial Disclosures:
Going renewable directly boosts a company’s Environmental Social Governance (ESG) standing:

  • Environmental Performance: It clearly cuts Scope 2 greenhouse gas emissions – essential for hitting climate targets like those in the Paris Agreement and reducing risks tied to carbon pricing.
  • Social Impact: It can mean cleaner air, new green jobs, and better community ties when companies invest in local renewable projects – all important for getting projects approved and being a good neighbor.
  • Governance and Risk Management: It shows a company is on top of managing fluctuating energy prices and the financial risks of climate change. This fits right in with the Task Force on Climate-related Financial Disclosures (TCFD), which pushes for clear reporting on climate risks and chances, and frameworks like the Science Based Targets initiative (SBTi) that demand serious emission cuts.
 

Key Renewable Sources Technical Considerations for RE100

RE100 doesn’t pick favorites on renewable types, but some are more popular for good technical and economic reasons:

  • Solar Energy: It’s incredibly scalable, from rooftop setups to huge solar farms, and its power output is well understood. Plus, its declining cost (LCOE) is a big draw.
  • Wind Energy: Great for large, off-site power generation, but you need to know you’ve got strong, consistent wind. Turbine tech is getting better all the time.
  • Hydropower: A reliable renewable source, but building new large hydro plants faces big environmental, social, and permitting hurdles. Existing hydro is still key.
  • Biomass and Geothermal: More specialized. Biomass needs a reliable, sustainable source of material. Geothermal offers steady power but only works in specific locations.

Meeting Stakeholder Expectations: From Investors to Regulators:
The push to decarbonize is coming from all directions now:

  • ESG Investors: They look closely at climate risk when investing, preferring companies with clear decarbonization plans like RE100 membership.
  • Customers and B2B Clients: More and more, they want sustainable products and supply chains, so renewable energy use becomes a deciding factor.
  • Engineering and Technical Talent: People want to work for companies that are innovative and care about the environment.
  • Government Agencies and Regulators: They’re bringing in carbon pricing, rules for renewable energy use, and emissions reporting. RE100 helps companies stay ahead of these.

An RE100 commitment is a solid sign that a company is serious about managing its environmental impact and is strategically ready for a low-carbon future. That’s crucial for keeping investors happy and staying a market leader.

Why are Companies Choosing Solar for RE100?

Solar energy’s rise as the top pick for RE100 strategies isn’t by chance. It’s a smart combination of mature technology, economic benefits, and flexible deployment that really clicks for engineers, sustainability leaders, and energy-hungry industries.

  1. Abundant Resource Predictable Generation Profiles:
    Sunlight is everywhere. Places like India, with over 300 sunny days a year and strong solar irradiance (4-7 kWh/m²/day), have fantastic solar potential. This predictability, especially for daytime operations common in businesses and factories, lets engineers accurately predict energy output, which is key for designing the right-sized system and figuring out the finances.

  2. Superior Cost-Effectiveness and Declining LCOE:
    The Levelized Cost of Energy (LCOE) from solar PV has dropped by a staggering 80-90% in the last decade. This makes it often cheaper than traditional power in many places. Why? Better PV cell tech, larger-scale manufacturing, and smarter system components. For decision-makers, this means lower running costs, protection from unpredictable fossil fuel prices, and a good return on investment.

  3. Unmatched Deployment Flexibility for Diverse Infrastructure:
    Solar can be set up in so many ways, fitting different company sites and needs. This is a big plus for commercial real estate developers and facility engineers:

    • On-site Distributed Generation:

      • Rooftop Solar: Makes great use of empty roof space on factories, warehouses, data centers, and offices. Engineers need to check building strength and grid connection details.
      • Ground-Mounted Systems: Good for facilities with spare land, allowing for bigger installations.
      • Building Integrated PV (BIPV) and Solar Carports: Clever designs that generate power while also looking good and serving another purpose.

    • Off-site Utility-Scale Procurement:

      • Direct Investment in Solar Farms: For companies with the cash and interest in owning the assets.
      • Power Purchase Agreements (PPAs): The most common way, where companies agree to buy solar power from projects owned by others. Virtual Power Purchase Agreements (VPPAs) are a smart financial tool for getting RECs and hedging against price swings without taking physical power, great for companies with sites all over.

  4. Enhanced Energy Independence Risk Mitigation and Cost Predictability:
    Generating solar power on-site means less reliance on the main grid. This shields companies from jumpy fossil fuel prices and transmission fees. Long-term PPAs (often 15-25 years) let companies lock in electricity prices, giving them budget certainty – a huge deal for industries that use a lot of energy. For engineers, on-site solar, especially with battery storage, also means more reliable power.

  5. Optimal Alignment with Power Purchase Agreement (PPA) Structures:
    Solar projects are almost tailor-made for PPAs. Their output is predictable (making risk-sharing in PPAs easier), they don’t cost much to run, and they last a long time (25+ years). This lets RE100 companies hit their renewable targets often without paying a lot upfront, making large-scale green energy much more doable. Energy consultants and legal teams are key in setting up good PPAs.

Solar vs. Other Renewable Sources

When looking at RE100 options, a straight technical and economic comparison shows why solar often comes out ahead for most companies.

  • Scalability and Modularity:
    • Solar (High): From small kilowatt setups to giant Gigawatt farms. Its modular nature means you can build it in stages and match it to your power needs.
    • Wind (Medium-High): Best for big, utility-scale projects. On-site wind is usually not practical.
    • Hydro (Low-Medium): Very site-specific, and not much room for new large projects. Small hydro is niche.

  • Capital Expenditure (CAPEX) and LCOE:
    • Solar (Medium rapidly declining): Upfront costs are falling, and the lifetime cost (LCOE) is low. PPAs can cut out the direct upfront cost for companies.
    • Wind (High): Needs a big investment to start. LCOE can be good in very windy spots.
    • Hydro (Very High): Takes a long time to build and costs a lot upfront.

  • Resource Availability and Geographical Footprint :
    • Solar (Excellent): India gets lots of sun almost everywhere, making solar widely usable.
    • Wind (Moderate): Good wind is found mostly in specific windy areas.
    • Hydro (Location-dependent): Mainly in the Himalayas and certain southern/central river areas.

  • On-site Generation Suitability:
    • Solar (High): Perfect for rooftops, ground-mounts, and carports at company sites.
    • Wind (Low): Generally not a fit for on-site use at most business or industrial places.
    • Hydro (Negligible for most): Extremely site-specific.

  • Operational and Maintenance (O&M) Complexity:
    • Solar (Low): Few moving parts. Mostly needs panel cleaning and inverter checks.
    • Wind (Medium): Turbines have complex parts needing regular, specialized upkeep.
    • Hydro (High): Dams and machinery need a lot of O&M.

This all-around technical and economic strength makes solar a very practical and smart financial pick for a wide range of RE100 companies.

How Solar Helps Meet RE100 Compliance?

  • Apple: Runs its global operations on 100% renewable energy, with a lot of that from their own or contracted large-scale solar farms.
  • Infosys (India): Has put in major on-site solar (rooftop and ground-mounted) across its campuses, setting a high bar for corporate solar in India.
  • Tata Motors (India): Is smartly adding solar power to its manufacturing plants, including working with GSE Renewables to cut energy costs and emissions.
  • Google: Has matched its worldwide electricity use with 100% renewables since 2017, relying heavily on big solar and wind PPAs, showing how sophisticated energy buying is done.

Choosing solar doesn’t just feel good; it gives companies solid ways to meet RE100’s tough compliance rules, which is a big deal for sustainability leaders and ESG reporting.

  1. Precise Energy Generation Tracking and Verification: Modern solar setups come with advanced meters, SCADA systems, and energy management platforms. These tools provide detailed, real-time, and past data on energy produced (kWh, MWh). This info is vital for:

    • Verifiable renewable energy claims: You need this for audits and RE100 reports.
    • Performance monitoring and optimization: Engineers use this data to make sure systems are running as designed.
    • CDP Reporting: It gives the auditable data needed for yearly RE100 updates.

  2. Streamlined Integration with Renewable Energy Certificate (REC) Systems:
    Solar power generation works smoothly with REC systems, like India’s domestic RECs or International RECs (I-RECs).
    • Because solar output is clearly measured, issuing and retiring RECs is straightforward.
    • I-RECs give multinationals a trusted way to back up their renewable claims in different countries.
      This ability to trace energy is key for showing transparent progress towards 100% renewable electricity.

  3. Direct Quantifiable Reduction of Scope 2 GHG Emissions:
    The electricity a company buys falls under Scope 2 emissions (indirect greenhouse gas emissions). By switching to solar, whether made on-site or bought through a PPA, businesses directly replace grid power that often comes from higher-carbon sources.

    • This means a measurable drop in a company’s Scope 2 footprint.
    • Engineers and sustainability teams can accurately calculate these cuts based on solar MWh produced or bought and the local grid’s emission levels.
      This is a fundamental part of hitting net-zero targets and improving TCFD-aligned financial disclosures.

Challenges and Considerations of RE100

Engineers and project managers know that while solar is great, there are technical and logistical hurdles to clear for a successful RE100 solar strategy:

  1. Upfront CAPEX and Financial Structuring: Even though the lifetime cost of solar is low, paying for large on-site systems upfront can be tough. Smart financing like solar leases, OPEX/PPA models (where someone else owns and runs the plant), and green loans are essential. Engineers help by designing the most cost-effective systems.

  2. Policy Regulatory and Grid Interconnection Complexity: Dealing with different state or national solar rules, net metering policies, open access charges, and grid connection standards (like India’s CEA technical rules) takes know-how. Approval delays or policy shifts can throw a wrench in project plans. Government agencies play a part in making these processes smoother.

  3. Site Suitability Infrastructure Constraints and System Integration:

    • Structural Engineering: Rooftop solar needs a good look at the building’s strength.
    • Geotechnical and Land Use: Ground-mounted systems need the right kind of land. Commercial real estate developers need to think about this early.
    • Grid Capacity and Stability: Big solar plants need a local grid that can handle the power. Grid connection studies are a must. Fitting solar in with existing power systems and backups needs careful engineering.

  4. Intermittency Management and Energy Storage Solutions (BESS): Solar PV only works when the sun shines. That’s a big thought for places needing power 24/7. While RE100 lets companies match usage with RECs annually, for true round-the-clock carbon-free power or better on-site reliability, Battery Energy Storage Systems (BESS) are becoming more common. Figuring out BESS size, control, and ROI is complex engineering.
  5. PPA Negotiation and Long-Term Performance Risk: PPAs are long-term deals. It’s crucial to do a thorough technical check on the solar developer, the tech they’re using, and their O&M plans. Performance guarantees and how much panels might degrade over time need careful review by energy consultants and company lawyers.

How GSE Renewables Can Help?

At GSE Renewables, we offer specialized engineering, procurement, construction (EPC), and consulting to help RE100-focused companies turn their renewable dreams into working realities. We guide engineers, sustainability leaders, and large businesses through the technical, financial, and regulatory maze of going solar.

Our End-to-End Services for RE100 Solar Implementation:

  • Detailed Solar Feasibility and Engineering Studies: We do in-depth site checks, system sizing, structural reviews, grid impact studies, and financial modeling (LCOE, ROI, payback).
  • Customized System Design and Engineering: We tailor on-site (rooftop, ground-mount, BIPV) and off-site solar solutions, focusing on top performance, reliability, and smooth integration with your current setup.
  • Turnkey EPC Project Execution and Management: We handle the whole project, source quality parts, and ensure installation and commissioning meet the highest engineering and safety levels.
  • Regulatory Approvals Permitting and Grid Interconnection: Our experts smoothly handle complex approval processes to get your project commissioned on time.
  • RE100 Compliance Documentation and I-REC Advisory: We help you gather data for CDP reports and strategically secure I-RECs.
  • Advanced Operations & Maintenance (O&M) and Asset Management: We offer performance tracking, predictive upkeep, and optimization to get the most power and longest life from your solar assets.

Conclusion

RE100 Renewable Energy is a landmark commitment for any company. For engineers, sustainability leaders, and businesses looking ahead, solar energy presents the most solid, technically sound, and financially smart way to hit that 100% renewable electricity goal. Its scalability, falling costs, and direct cut to Scope 2 emissions make it a powerful answer for meeting stakeholder demands and building a resilient business for the long haul. The strategic need to adopt solar is undeniable.

Partner with GSE Renewables. We engineer your solar roadmap, making sure your RE100 journey is technically strong, financially smart, and successfully delivered.

Talk To Us – We’re Here To Help

Frequently Asked Questions About RE100 or Renewable Energy 100%

What are the technical implications of RE100 for Indian manufacturing industries?
For Indian manufacturers, RE100 means rethinking energy. It involves checking on-site solar potential (roofs, ground space), fitting renewables into current electrical systems, possibly adding batteries for power quality or backup, and figuring out ‘open access’ rules for buying off-site power. Detailed energy audits and feasibility studies are the first step.
How does RE100 define "100% renewable electricity" and what are accepted procurement methods?
RE100 means matching 100% of your global electricity use with power from renewable sources. You can do this by generating your own (on-site solar), buying directly from specific renewable projects (PPAs), using green electricity products (tariffs/contracts with good tracking), or buying unbundled Energy Attribute Certificates (like RECs or I-RECs), as long as they meet RE100’s quality standards.
What are key criteria for RE100 membership relevant to large corporations?
Big companies usually need to publicly promise to hit 100% renewable electricity by a set year (2050 at the latest), report their progress yearly via CDP, and typically use a lot of electricity (e.g., over 100 GWh/year, though this can differ). This promise has to cover all their operations worldwide.
From an ESG investor's perspective, why is a company's RE100 commitment significant?
An RE100 commitment tells ESG investors a company is serious about managing climate risk, finding efficiencies (like lower energy bills), and has strong governance. It boosts brand image and shows they’re in line with global sustainability efforts, making them a more appealing long-term investment.
How does solar PV system design specifically cater to RE100 goals for commercial real estate?
For commercial properties, solar PV design aims to maximize on-site power from rooftops and carports. This lowers tenant or owner running costs, makes the property more valuable (think green building ratings), and helps meet demand from tenants who want sustainable spaces. Building-integrated PV (BIPV) can also be used for looks and function, helping building portfolios meet RE100 targets.

View Recent Posts

ESG & Solar: How Sustainable and Environmentally Friendly is Solar Energy

ESG & Solar

Our Blogs With a combined experience of over 250 years and the successful management of 30 MW of solar energy projects, GSER offers the most efficient solutions. ESG & Solar: How Sustainable and Environmentally Friendly is Solar Energy? Environmental, Social and Governance (ESG) principles have...

Read More
Maximizing Solar Efficiency

Maximizing Solar Efficiency

Our Blogs With a combined experience of over 250 years and the successful management of 30 MW of solar energy projects, GSER offers the most efficient solutions. Maximizing Solar Efficiency: Proven Strategies for Businesses to Optimize Their Solar Energy Systems With electricity expenses on the...

Read More