Radhika Choudary, Co-Founder, Freyr Energy, speaks about the immense potential solar energy holds for the cement industry, offering solutions to combat high energy consumption and carbon emissions.
Tell us about your green energy solution.
Freyr Energy is a full-service rooftop solar company that helps home and business owners across
India to transition to solar power, seamlessly. Through our innovative approach and cutting-edge technology, SunPro+ App, which digitises the entire customer journey, from exploration to ownership of solar systems.
Our commitment to quality has earned us the trust of over 4000 satisfied customers nationwide, including prominent commercial and industrial clients such as Centuary Mattress, Shree Cement, MTAR, Reitz India, Axis Bank, Bhavika Plastek, Indian Oil, HP and MEDA.
By leveraging solar energy, we are not only reducing carbon emissions but also helping businesses and homeowners save on energy costs in the long run. Our solution is a testament to our dedication to sustainability and our mission to create a cleaner, greener future for India and beyond.
What role can solar energy play in the manufacturing process of cement?
Solar energy can play a pivotal role in revolutionising the manufacturing process of cement, addressing critical challenges faced by the industry. Historically, cement production has been associated with high energy consumption, heavy reliance on coal-based power plants and significant carbon emissions. However, the integration of solar energy presents a transformative opportunity for cement manufacturers. Solar energy integration in cement manufacturing not only will reduce their carbon emissions but also significantly cuts energy costs, especially
where it forms a sizable portion of expenses, up to 30 per cent. Keeping this in mind, key cement companies in India have set ambitious goals to reduce their carbon emissions by 15 per cent to 17 per cent over next 8 to 10 years.
Concrete examples highlight the tangible benefits of solar adoption within the industry. For instance, Shree Cement’s investment in solar power not only reduced its carbon footprint but also resulted in substantial annual cost savings of approximately Rs.55 crores. Similarly, Ultratech Cement’s cumulative solar capacity exceeding 35 MW has enabled a reduction in reliance on conventional energy sources, leading to significant savings in energy costs. Solar energy offers respite in areas with high or erratic grid prices, with added benefits from government incentives like net metering and depreciation benefits, making it an economically viable and sustainable choice for the industry.
As a renewable source of energy, does your solution impact the productivity of the manufacturing process?
Rooftop solar systems or behind-the-meter solar systems work seamlessly at a manufacturing site and will not impact productivity negatively. In fact, they can enhance productivity by reducing operating expenses and providing tax benefits. A report by the International Renewable Energy Agency (IRENA) highlights that adopting solar energy can reduce energy costs by up to 50 per cent in the industrial sector, thus enhancing productivity and competitiveness for manufacturing businesses.
Solar systems require minimal maintenance, ensuring consistent energy supply and reducing grid reliance, minimising production disruptions. Additionally, they lower greenhouse gas emissions, aligning with sustainability goals and boosting brand reputation.
However, going solar is a one-time expense that can be financed through our partner lenders or banks. This financial assistance helps manufacturers save on operating expenses and also avail tax benefits, such as accelerated depreciation (AD) of 40 per cent year-on-year until the asset is fully depreciated.
How does the use of energy supplied by your organisation create an impact on the cost of manufacturing for any product?
The average operational expenses towards electricity and fuel for the cement industry ranges between
20 per cent to 30 per cent. By transitioning to solar energy, companies can notably slash these expenses, fostering improved cash flows while demonstrating environmental responsibility. Our customers, who have chosen to go solar, have not only enhanced financial viability but also earned accolades from customers for sustainable practices Commercial and industrial customers can have an ROI of 35 per cent to 40 per cent on their solar asset investment, which means a breakeven period of less than 3 years which can be further expedited by leveraging tax benefits. Overall, our energy solutions not only reduce manufacturing costs but also bolster sustainability efforts, leading to enhanced profitability and market competitiveness for our clients.
Tell us about the role of technology and automation in generating green energy.
Technology and automation are instrumental in harnessing the full potential of green energy sources, enhancing efficiency, reliability and scalability.
Through real-time monitoring and predictive analytics, renewable energy systems optimise performance based on factors like weather patterns and demand fluctuations. Energy storage solutions and smart grid technology facilitate seamless integration into existing infrastructure and enable the efficient capture and storage of excess energy generated, while remote monitoring and maintenance ensure minimal downtime and operational costs. These innovations accelerate the transition to a sustainable energy future by maximising the potential of renewable energy sources and promoting widespread adoption.
What are the major challenges in the generation of solar energy or larger manufacturing facilities?
Solar energy generation in the Indian manufacturing sector encounters challenges such as limited rooftop space, high initial investment costs, and intermittency due to weather conditions. Additionally, the Central Electricity Authority (CEA) has highlighted the need for grid modernisation and infrastructure upgrades to accommodate the integration of renewable energy sources like solar power. Furthermore, maintenance requirements, and regulatory hurdles hinder widespread adoption. According to Bridge to India, only about 15 per cent of commercial and industrial rooftops in India are suitable for solar installation. Grid modernisation is crucial to address integration issues, ensuring stability and reliability.
Overcoming these challenges requires collaborative efforts from stakeholders and supportive policies to promote solar energy. With concerted efforts and strategic initiatives, solar energy can play a significant role in enhancing energy security and driving sustainable development in the manufacturing sector.
Tell us about the innovations in the sector of green energy that are done by your organisation and can be expected in the future.
At Freyr, our goal is to democratise access to solar energy by implementing innovations focused on standardising quality and improving customer experience. One of our key innovations is our proprietary SunPro+ App, which fully digitised the customer solar journey from start to end making the solar transition very seamless and transparent. We address the lack of customer awareness by providing comprehensive guidance on the steps involved in owning a solar system. This app gives customers a deeper understanding of the process, empowering them to make informed decisions.
Moreover, we are tackling the challenge of an unorganised sector with no established quality standards. By working with established vendors and leveraging our expertise, we’re elevating standards to provide customers with reliable and high-quality solutions.
Another issue with unorganised vendors is their poor or nonexistent after-sales service, which is especially concerning considering the long lifespan of solar systems. At Freyr, we address this by offering 24×7 after-sales support through our SunPro+ App, alongside affordable Annual Maintenance Contracts (AMCs), guaranteeing optimal system performance. Additionally, we offer collateral-free loans to make solar energy solutions more accessible and affordable, enhancing the overall customer experience.
Looking ahead, we are committed to continuous innovation in the green energy sector, with a focus on further standardising quality and enhancing customer satisfaction.
– Kanika Mathur
