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Why is Google investing in solar energy?
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3 Answers
Google operates a vast array of computer servers in very large, hot and power hungry data centers to make Google search and Google cloud services, such as Google apps, work. All told - Google can likely save millions by making a greater use of solar energy throughout their operations.
Solar energy, and mainly Photovoltaic, is one of the most expensive energy. To enter solar energy business is a difficult move if determined by looking for saving. Nevertheless, the incentives schemes that are in place in several countries makes this business a good deal, but not as good as the profitability of the core business of Google by far.
One big issue of solar is that only one thing is certain, at night there is no energy !
I can see two main reasons why solar business could be attractive to Google in the present days :
1- independence from the grid: As said Robert, Google is operating large server farms and needs a lot of energy. in some places, the electrical network can be unreliable and it could be a good move to get its own supply to ensure continuity of business;
2- Image : Green business is one big trend nowadays and big visible companies must be able to tell that they are contributing to green business.
Didier,
One other item to consider. Solar generates energy during the most expensive time of the day, peak hours. Google will use Solar as part of their energy mix not there only energy source. So, if you are going to chose an renewable energy technology, price aside, solar is a good place to start. If the PTC in the US stops completely, the prices for solar technology will continue to drop.
Regards,
Michael
www.ortech.ca
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