Powering a Better Future

"What can businesses do to help address the environmental challenges impacting our planet?” 

This is the question that Concepcion Industrial Concepcion (CIC) has asked itself. The Philippines is one of the countries most vulnerable to the impact of climate change, the effects of which ripple to families, communities, and industries. With electricity rates spiking, threatening to take up as much as 9-10% of the company’s total expense especially at the Concepcion-Carrier Air Conditioning manufacturing facility in Cabuyao, Laguna, CIC wanted to explore a more sustainable energy source to power its plant.

The combination of easily accessible technology and pressing needs created an opportunity. 

“In 2018, the management sensed that electricity cost would go up,” shared Val Valero, Assistant Vice President for Manufacturing Operations for CIC’s Product Solutions Division. “With solar panel prices going down at the same time, we saw the opportunity to explore the use of solar power, not only to save on electrical expenses but most especially, to contribute to the protection of the environment.”

Prior to 2018, CIC had already been exploring the use of solar panels as an alternative source of energy for its manufacturing facility; however, engineering simulations showed that the solar panels available in the market were too heavy, making the project impractical and even potentially dangerous.

For the solar power project, CIC brought together different experts from the Product Solutions Division, Finance and Commercial Management departments. 

Val championed the project, supporting the work by conducting the initial assessment and reviewing the technical specifications of the available solar panels. The project team leader, Raalf Donguines, crafted the detailed timeline and focused on the preparations for the solar power set-up. Two colleagues from Finance, Melanie Acosta and Abigail Sibalo, took care of the financial analysis, payment terms, and return on investment, making sure that it remained an attractive and sustainable investment for the organization. They were also supported by Raleigh Yu from Procurement, who was in charge of reviewing supplier quotes and took the lead in negotiating the final price for the solar panels. 

With the team in place, it was time for Val and the rest of the Solar Power Project team to find the right people to help them make the dream of setting up a solar power system a reality. 

Their first task? Find the right supplier. 

The search led them to Sunpreme Power System. Sunpreme used bifacial technology, which could generate up to 20% more solar power compared to other panels, making it a more cost-effective investment. It also has a frameless panel that makes it 20% lighter than the other solar panels and that makes it more suitable to the Factory’s roof application.

“When we ran the simulation, we saw that it could withstand the pressure brought about by typhoons,” said Valero. “We just had to prove that the roof could carry the load, and luckily we had enough structural engineers to validate the simulations that we ran.”

Another advantage was the solar panels’ low maintenance—the panels needed to be cleaned only twice a year. With the right partner for the project, CIC installed 1,052 panels on the roof of its CCAC factory. The installation took only three months, and the organization officially launched the solar modules’ operation at the factory in October 2018. 

“It was very easy to handle, just plug and play,” added Valero. “We conducted an orientation for facility engineers, but it was very simple, since the system was easy to manage and maintain.”

How has it impacted the organization? Since installing the solar panels, CIC harvests over 1,500 kilowatt hours per day from the system. This is the equivalent to providing power to about 210 households in the Philippines. 

“If the load is low, almost all of our electrical requirements are taken from solar,” he said. “Once the load increases, that’s when the supply from Meralco kicks in.”

Around 20% of CIC’s bill now comes from solar. The organization saves an average of Php250,000 per month on electricity thanks to the solar panels, and it has done so for the past year. The modules are also expected to last at least 25 years, providing CIC with a sustainable source of renewable energy in the coming decades. 

For Valero and his team, the project was also proof of how leadership ultimately drives innovation and sustainability in an organization. “What’s great about this is that the management team was onboard. They wanted the project. There were no issues with approving capital expenditures or project proposals, because it was aligned with the organization’s advocacy for environmental protection. Our management even pushed us to make sure it was done quicker so that it would be in place.”

Valero and the rest of the team are still exploring other potential energy cost reduction projects, and they are hopeful of finding projects that will deliver similar benefits. 

Businesses that bring together innovation and sustainability are businesses better equipped for the uncertainty, ambiguity, and volatility of the future. If there’s anything to be learned from the Solar Power Project Team, it’s that leadership, responsibility, and commitment are critical to making smart decisions for a more sustainable future. The team’s sense of shared responsibility and commitment helped turn this project a reality, and the management team’s commitment to true leadership allowed CIC to introduce innovation in a short period of time. 

With this solar panel project, CIC has shown that what makes good business can also be good for the planet.