Tomahawk, WI 11/06/2013 (BasicsMedia) – What is the business sense in investing in renewable energy? Microsoft Corporation (NASDAQ:MSFT) should know, it has joined the ranks of Walmart, Ikea and Google – just to mention a few – that are investing in clean energy. Microsoft is the latest big business to announce that it is investing in clean energy to power one of its data centers. The company has a committed to a 20 years clean energy purchase from a Texas wind farm whose output is put at 110MW. The electricity from this project will be sent to the local grid which serves Microsoft’s San Antonio data center. The construction of the Texas wind farm which starts next year is expected to be completed in 2015.

Reduction of carbon emission now sees a moral thing for big corporations

For a very long time, pressure has been piled on big businesses to embrace clean energy so as to cut on carbon emission. But for equally long time, buying clean energy credit seemed to be the easiest part to do for most businesses. It doesn’t involve signing of long-term contracts and it also doesn’t require hefty capital investment. However, it is less effective than investing directly in renewable energy. But as Microsoft and other big firms make foray into renewable energy to actually walk the talk on reduction of carbon emission, it does come as a wake up call to those businesses which still think buying renewable energy credit is the natural thing to do.

Concerns over global warming should worry everyone and firms like Microsoft whose impact in carbon emission is closely watched are equally concern about their reputation. In today’s competitive business environment, going the clean energy way can only be a moral step.

There is more to renewable energy than climate

Beyond the reduction of carbon emission, businesses which embrace renewable energy also set themselves up for huge financial savings in energy spending. Renewable energy enjoys federal and state tax breaks as well as other subsidies. And the cost of clean energy installations has declined steeply as regulatory agencies step in to leverage the industry. This has been so successful that wind power price has been able to drop from $70 per megawatt-hour in 2009 for a long-term contract to $40 per megawatt-hour in 2012. What this means is that Microsoft’s 20 years 110MW wind power contract would be an important saving for the software giant. Moreover, it would boost its reputation in the clean energy platform as a business which minds about attaining and sustaining drift to renewable energy instead of coals and natural gas which have undesirable impact on the environment.

Reduction of utility bills for companies like Microsoft sounds sensible in this the present economic situation.

Investment in renewable energy helps nurture the industry

The renewable energy sector is still troubled. A lot of firms still find it a hard sell to commit huge money into investing in clean energy. However, by joining other big firms in renewable energy investment, Microsoft is also nurturing the sector and this would result in multiple benefits. Think about reduced rate of global warming, reduced cost of clean energy and job opportunities.

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