Fighting Energy Exclusion

Solartia

1. No Poverty 5. Gender Equality 7. Affordable and Clean Energy 13. Climate Action

Overview

It is known to society that having access to energy in rural areas is difficult. There are approximately 800,000,000 people around the world without energy because of the climate and circumstances they live in. The SDGs that were on top of mind for the solution where: (1) no poverty, (5) gender equality, (7) clean and affordable energy, and (13) climate actions. The company Solartia provided a solution that consisted of an autonomous system, hybrid microgrids, and network expansion in order to solve the problem.


Authors

Diego agreda

Diego agreda

Andre Fiechter

Andre Fiechter

Laura Garrido Luna

Laura Garrido Luna

Lucía Marín

Lucía Marín

Nicolas Alzugaray

Nicolas Alzugaray

School

Universidad de Navarra

Universidad de Navarra

Professor

Isabel Rodriguez Tejedo

Isabel Rodriguez Tejedo

Innovation

In 2019, the company Solartia and IED joined together to combine their expertise in energy and electricity with a goal to fight against energy exclusion in core rural areas. With that being said, they came up with the product called Arca. Solartia's owner described this business innovation as a product “our innovation is kind of a mix of a business model, service and technology but is definitely a product because it is a source of generator”. This product is an autonomous solar generator, which works with energy, with integrated storage that has the capability to supply permanent energy in any part of the world. Due to the simplicity and sturdiness, Arca can be installed without the help of qualified personnel. As well as, Arca’s encapsulated electronics that ensure supreme protection against climate change and durability to humid environments. It seeks that with Arca, there is conservation of the environment, economic savings, and energy inclusion to the parts of the world with energy problems.

Fighting Energy Exclusion

Inspiration

The inspiration came because of the 800,000,000 people in the world that live without electricity, including many rural areas and developing countries. As well as that, poverty (SDG 1) is a problem attached to energy exclusion because the people suffer from scarce resources such as electricity and communication systems. People living in these areas thought about 3 possible solutions which finally ended up being problematic as the owner described “solar grid couldn´t be a solution because they don't last more than 2 years, most of them would be damaged in year 2”. With that being said, the amalgamate of Solartia and IED wanted to provide a solution with the product Arca, based on sustainable development goals. Firstly, the company wanted to be able to provide opportunities in difficult areas to sustain electricity to reduce poverty. Also, Solartia and IED wanted something that allowed them to save energy from the solar system in order to stop using other diesel generators, and to have clean and affordable energy. The goal of this company was matched with the Arca product because the company wanted to provide energy for millions of people who are fighting against energy exclusion.

Overall impact

The overall impact of Solartia is greater than just supplying electricity. The impact it has on the environment is beneficial for everyone in the world. The more this company expands, the less chances of air contamination there are. Apart from contributing to the environment, the communities that this company helps is amazing. They create a buying sensation for the consumer where they are mentally focused on saving energy, so it is literally a win-win for consumers and the environment. Solartia also creates jobs in each of these poor communities, where the sales agent must be a local. This is reflected in the SDGs 1 and 10. Poor communities, mostly seen in developing countries, are beginning to have the opportunity to work outside their communities and actually reach their maximum potential in our society. This is an incredible lateral benefit to taking Solartia to any of these areas.

Business benefit

From the view of this company's sector there are a number of key benefits that Solartia provides. The first one and probably the most important due to its potential reward that can give the company is the solar tax benefits that Solartia experiences. Local, state, and federal governments all encourage the transition to renewable, clean, and efficient solar energy. They give certain helpful tax breaks and financial aid initiatives to express their support. This product is not only going to help people buying energy whenever they want but also most of these regions have some kind of subsidies by local governments so that they can have 50% of their consumption free but for the next 50% this company can make it very low for their tariffs explained the owner. “We do a kind of stakeholder involvement. We try to assess the capabilities of each one” says the owner. This advantage leads to accelerated depreciation. Your solar energy equipment is also eligible for accelerated depreciation. This is done through the Modified Accelerated Cost-Recovery System, which is a federal government program (MACRS). While most equipment depreciation tax deductions are spaced out over the product's lifetime, the MARCS initiative allows you to deduct the entire cost of your solar panel system in the first year. This enhances your cash flow and your capacity to finance your solar power installation dramatically.

You don't have to install a specific type or size of solar panel system in your business to qualify these tax benefits. They're government-backed incentives designed to encourage people to switch to solar energy, regardless of the type of system they install.

Commercial electrical power is a commodity, unlike what many people believe. Supply and demand determine whether it is bought or sold. When you use the grid to get electricity, you're subject to market forces and user rates. Future costs are not covered. This is due to the unpredictability of the future.

The majority of futurists believe that in the following decades, the globe will become less reliant on fossil fuels. Emissions and carbon footprints from coal and gas-fired electric power plants will be more tightly regulated. This entails higher fossil fuel generation costs, which must be passed on to consumers.

In places with a sufficient supply of water, hydroelectricity is the primary source of energy.

Alternative energy sources, such as nuclear power plants, have a bleak future. The future of nuclear power generation seems dismal, given the volatility of accidents and the concerns with nuclear waste. That leaves the sun, which is a virtually untapped renewable energy source. Solar energy is the future answer for low-cost electrical generation.

You're making an investment in your company's future by switching to solar energy. You can hedge your electrical risk by constructing a self-contained solar generation system, similar to how investors bet on future markets in the stock market. You save money on electricity while also protecting the future of your business when you use solar power.

Solartia can be expensive during the capital expenditure part of it but their operations expenditure is very low because this has a 10 year warranty. So, through time you are going to be able to sell energy in a very low price.

Social and environmental benefit

The solar energy renewable and natural energy source which does not expel any gases that can contaminate the air or the environment. In a nutshell, its sunlight is converted to energy for use. Whereas the regular electricity is produced by the tons of water and fossil fuels, which have a bad effect on the air.

Some of the environmental benefits are that it saves water (is one of the most important requirements for survival), also does not pollute the air, it slows climate change, it does not have energy production costs, has a versatile installation and has a positive impact on the economy, among many other benefits.

Also, it has social benefits like health benefits, reduction of energy that are imports for countries that aren't self-sufficient for their own power. But Solartia is focused on reducing gender inequality because women in these areas spent a lot of time looking for wood to cook.

Solartia is a company with a high sense of social responsibility. With the aim to generate real benefits for society and also for the economy and at the same time taking care of the environment.

This project is based on the triple line it has the social, environmental and economic part of it, from the social and responsibility point of view this firm sees it as a mission to help someone to promote energy inclusion, the owner states that “We are always going to create at least 1 or 2 jobs in all communities by signing a local agent”. This company assigns one of those people in each community household to be a selling point so people can go over there and request the number of energy they want and pay directly. Besides letting the community buy energy, it also creates some sense of ownership so they take care even more of the solution which in these regions is very important. It also helps the community to be more conscious of the way they lose their energy, they are not going to waste it because they are physically paying for it so they are not going to waste matters.

Interview

Alex Larios, Chief Commercial Officer

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Solartia

Solartia

Pamplona, ES

Business Website: https://solartia.com

Year Founded: 1999

Number of Employees: 2 to 10

Solartia is a Spanish engineering company that has been working on developing innovative renewable energy projects for over 20 years. The goal of Solartia is to improve people's way of life by improving sustainable development and to be recognized globally by the engineering approach and principles they have.