Central America is an eco-paradise. People come from all over the world because of their interest in eco-tourism- they want to see sloths and dolphins. Solar energy for hotels is not only a great money- saving investment, it also shows your customers that you care. At Avolta Energy, our hotel owning clients regularly tell us that their customers take note of their solar systems.
The tourism sector in Central America has been hit hard by COVID-19 driven shutdowns in 2020; with Central America starting to open up, businesses are gearing up for next year. Reducing operating costs is a key concern.
If cutting your energy operating costs is something you are interested in finding out about – contact us!
Reducing energy consumption is emerging as a key target for hotels looking to cut operating expenses. Going solar allows hotels to be as green, sustainable and as eco-friendly as possible as the hotel industry shapes its role in meeting global Sustainable Development Goals.*
*You can read Hilton’s full framework around UN Sustainable Development Goals or see Hilton’s actions around clean energy and clean water below at a glance. Major hotel chains from Marriott to Hilton to boutique hotels give a firm sense of where the hotel industry is heading.
This blog post will detail how solar energy helps hotels:
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- Save money on utility bills
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- Meet sustainability-oriented customers intentions
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- Fulfill international standards around climate action
First Some Basic Questions: How Does Solar Energy Work?
Solar panels convert the energy of photons (light particles) into electricity; this process is called the photovoltaic (PV) effect. When a photon hits a PV device, its energy is transferred from the photon to the local electrons in the material. These excited electrons begin to flow, producing an electric current. Solar cells (which is what solar panels are made up of) produce direct current (DC) electricity, which is then converted to alternating current (AC) electricity by an inverter (the other key piece of equipment for a PV system). The AC electricity can power appliances in homes or businesses, or be sent back to the electric grid, which operates with AC electricity.
Three key steps:
1. Solar cells within solar panels absorb light from the sun, which causes electric current to begin flowing.
2. An inverter converts DC electricity to AC electricity.
3. This electricity is used to supply current energy demands in the customer’s building and excess electricity beyond what the customer can use is exported to the grid.
What is a photovoltaic (PV) system?
A photovoltaic system is two basic types of components:
· Solar Modules (also called solar panels): Solar modules contain solar cells that convert sunlight into electricity. Solar modules are the building blocks of a photovoltaic system.
· Inverter(s): A type of electrical inverter that converts DC current to AC current. It can also perform other functions that are beneficial to the electricity grid (see smart inverters, which are now required in California and Hawaii). Often known as ‘the brains’ of a photovoltaic system.
Why solar energy for hotels? Why now?
In 2020, solar power became the cheapest form of electricity in history. Prices for solar have plummeted over the last year. Converging with the explosion of new solar economics is a global push for reaching and sustaining net zero global CO2 emissions. Reaching net-zero has taken on new urgency not just for policymakers but for businesses around the world. Climate commitments have ramped up along with new efforts to define common metrics and consistent reporting of sustainable value creation. New universal ESG (environmental, social, and governance) metrics in combination with consumer commitments to climate action puts hotels on the front-line.
“This is a unique moment in history to walk the talk and to make stakeholder capitalism measurable. Having companies accepting, not only to measure but also to report on, their environmental and social responsibility will represent a sea change in economic history.” – Klaus Schwab, Founder and Executive Chairman, World Economic Forum.
Solar Energy Is A Perfect Fit For The Tourism Industry In Central America. It Helps Hotels and Resorts Save Money and Draws More Customers
Here are 7 reasons solar energy is a great fit for hotels in Central America:
1. Solar Power Almost Always Delivers You Instant Savings on Energy Bills.
As soon as your solar system goes online, you start saving money. If you have paid for your system up front, you will save a lot – from 50% to 90% – off of your electric bill. If you have financed your system- and Avolta Energy offers several excellent financing options- you will still be saving money even including the financing costs.
At Avolta Energy we often see hotel solar projects with payback periods of 3-5 years, leaving more than 20 years of ‘free’ electricity to enjoy. As one small business site puts it in an article with tips on how to increase your hotel’s profit margins, “A building designed for energy efficiency will lower utility bills for decades to come.”
2. The ROI of Solar Energy Systems
Our clients usually put down 10% upfront, and they usually recoup that expense – which is their only expense – in less than a year! That is a pretty great return on your investment, after meeting this low threshold it is pure savings. And after 10 years you own the system outright and your system will continue providing your electricity for free for another 15 or 25 years. Solar panels often come with a 25-year warranty, but they are more likely to last at least another 5 years after that.
“Even if a hotelier finances their solar setup through a third party, there’s often an immediate improvement in cash flow because the utility savings amount to more than the monthly finance payment to the third party.” – Carl Masfield Vice President, NantEnergy
Because hotels use so much energy, even financing a solar power system often produces an immediate savings in monthly expenses. Energy Star estimates hotels spend $2196 per room annually – just on energy. 60% of that comes from lighting, HVAC, and water heating.
Solar energy can obliterate one of hotels’ biggest operating costs, and it does it immediately; with a faster payback period than most other improvements you could make.
Here’s the simplest way to say it:
“Because solar panels last for 25 years, solar power always produces a positive return on investment; the math over delivers” explains Avolta Energy President and co-founder, Seth Kleinman. “With hotels and resorts, a positive ROI is virtually guaranteed because simply put, hotels use a lot of energy.” Kleinman adds.
3. Solar Power Shows Your Eco-Credentials
The environmental benefits of hotels using solar power cannot simply be written off. Hotels use much more energy than homes. A hotel that generates even 20% of their energy from solar power has the same effect as multiple homes doing the same thing. Energy costs account for 60% of a hotel’s carbon footprint; going solar means tapping reliable, modern and sustainable energy that reduces a hotel’s carbon footprint.
4. Solar with Batteries Helps Hotels Improve the Customer Experience
A solar energy system can keep the lights and internet on when there is a power outage, especially when combined with a battery system. Energy resiliency can give guests and owners real peace of mind.
Furthermore, when the power does go out, using a silent sonnen battery is a much sexier experience than a loud and smelly generator.
In addition, solar installations themselves can be useful. One popular place to install solar panels in hotels and resorts is to use your carport rooftops. If you don’t have any carports, you can build them specifically for the solar panels with the panels on the roof.
5. Avolta Energy Can Offer Hotels Several Stylish Carport Options
This approach greatly expands the available space on hotel and resort properties for solar power and can also improve the customer experience.
People like garages, they keep them dry, and they make them feel like their car is protected, which in Central America often means protected from the blazing sun. A solar-panel carport is a welcome place to shelter for the sun-burned traveler who needs to pack up their car. When your customers see they can park in the shade of a solar roof, it makes an impression.
Solar power gives you options like more outdoor lighting or more fans (super important in this COVID-19 time) all without adding to your bill.
Now that Electric Vehicles are becoming a big thing, offering an EV charger (Avolta Energy has several excellent options) that is powered by solar is another way to really up your eco-game.
6. You Can Receive Great Media Coverage By Going Solar
Businesses need all the positive media coverage they can get. When a big local business goes solar, the media loves to report on it.
Take advantage of the free and positive publicity you can leverage through solar power. Your hotel or resort will be seen as a force for good, helping the environment, reducing pollution, and fighting climate change.
7. Solar Energy Frees Up Money to Re-Invest in the Hotel
Solar energy erases significant utility expenses. Each month, the money that used to go towards paying some of the most expensive electricity in Latin America can be reinvested in the hotel. In Costa Rica and throughout Central America there is still plenty of room to differentiate your hotel through smart and stylish cleantech like solar and batteries and water-saving technologies.
Business and marketing success thrive on differentiation and Avolta Energy and our water-saving sister company acualogica.com can help. Contact us today.