Blogs > The Role of Renewable Energy in Building Sustainability
  • Information
  • Performance

The Role of Renewable Energy in Building Sustainability

Garima Bharadwaj
Garima Bharadwaj

15th March 2025

Introduction

As the world shifts towards net-zero carbon goals and energy independence, renewable energy has become a crucial component of sustainable building design. With buildings accounting for nearly 40% of global energy consumption and 30% of greenhouse gas (GHG) emissions, integrating solar, wind, and other renewable sources into building infrastructure is no longer optional—it’s a necessity.

For decision-makers in commercial real estate, corporate facilities, and urban planning, leveraging renewable energy is not just about reducing environmental impact but also about lowering operational costs, improving energy security, and meeting regulatory mandates.

In this blog, we’ll explore:
Why renewable energy is essential for building sustainability
Key renewable energy sources for buildings
How smart building technologies like Know Your Building can enhance renewable energy integration


1. Why Renewable Energy is Essential for Sustainable Buildings

1.1. Lower Energy Costs & Grid Independence

With rising electricity tariffs and unreliable grid supply in many regions, businesses are prioritizing on-site renewable energy to gain energy independence and long-term cost savings.

🔹 Example: A commercial building that installs a 100 kW solar PV system can save up to ₹12 lakhs per year in electricity costs, reducing dependency on the grid.

💡 Industry Insight: On-site renewable energy can reduce grid electricity consumption by 40-60%, cutting peak demand charges and improving financial resilience.


1.2. Achieving Net-Zero & ESG Compliance

Governments and investors are now enforcing carbon neutrality mandates. Companies adopting renewables can:
✅ Meet ESG (Environmental, Social, and Governance) goals
✅ Obtain LEED, IGBC, and GRIHA green building certifications
✅ Benefit from carbon tax credits & incentives

💡 Industry Insight: 60% of Fortune 500 companies are now investing in renewable energy as part of their corporate sustainability strategies.


1.3. Energy Security & Resilience Against Power Outages

With frequent grid failures and power shortages, on-site solar, wind, and battery storage ensure:
Uninterrupted power supply during outages
Lower diesel generator dependency, reducing operational costs and emissions
Business continuity, especially for data centers, hospitals, and manufacturing plants

🔹 Example: In India, many IT parks and commercial hubs in cities like Bangalore, Hyderabad, and Gurugram are investing in solar + battery storage solutions to ensure 24/7 power reliability.


2. Key Renewable Energy Sources for Buildings

2.1. Solar Power: The Most Feasible Renewable Option

Solar energy is the most widely adopted renewable energy source for buildings due to its:
Scalability & ease of installation – Rooftop solar panels work for residential, commercial, and industrial buildings.
Cost-effectiveness – Solar panel costs have dropped 80% in the last decade, making it a high-ROI investment.
Government incentives – Businesses in India can claim Accelerated Depreciation (AD), Net Metering Benefits, and Renewable Energy Certificates (RECs).

💡 Industry Insight: India’s solar rooftop capacity is expected to reach 40 GW by 2030, driven by corporate and industrial adoption.

🔹 Case Study: Infosys has installed 60 MW of solar capacity across its campuses in India, reducing annual electricity costs by 45%.


2.2. Wind Energy: Ideal for Large-Scale Buildings

Wind power is effective for:
Industrial complexes, business parks, and rural corporate campuses
Reducing long-term energy costs for high-energy consumers
Hybrid setups with solar & battery storage for maximum efficiency

💡 Industry Insight: Commercial buildings using wind energy save an average of 30-50% on electricity costs in high-wind regions like Tamil Nadu, Gujarat, and Maharashtra.


2.3. Bioenergy & Waste-to-Energy Solutions

Biogas and waste-to-energy solutions are gaining popularity for:
Hotels, hospitals, and food processing units that generate organic waste
Urban sustainability programs focusing on zero waste
Reducing landfill dependency and generating renewable power

🔹 Example: The Delhi Metro Rail Corporation (DMRC) uses waste-to-energy power, making it the first metro system in India to become carbon-neutral.


2.4. Geothermal & Hydro Energy for Special Applications

  • Geothermal energy provides stable heating & cooling for large commercial buildings.
  • Micro-hydro power plants are feasible for buildings near rivers or irrigation systems.

💡 Industry Insight: Geothermal cooling systems can reduce HVAC energy consumption by 30-60%, making them ideal for data centers and industrial cooling needs.


3. Smart Building Technologies: Enhancing Renewable Energy Efficiency

Simply installing renewable energy sources is not enough—businesses need smart management systems to maximize efficiency.

🔹 How Know Your Building Helps Optimize Renewable Energy Use:

Real-Time Energy Monitoring: Tracks solar, wind, and grid energy consumption.
AI-Driven Load Balancing: Optimizes power usage based on real-time energy demand and supply.
Smart Battery Storage Management: Ensures optimal use of stored solar or wind energy, reducing grid dependency.
Predictive Maintenance for Solar & Wind Assets: Reduces downtime and enhances system longevity.

💡 Decision-Maker Takeaway: A smart Building Management System (BMS) like Know Your Building ensures maximum ROI on renewable energy investments.


4. Business & Financial Benefits of Renewable Energy Adoption

Lower Operational Costs

  • Solar and wind reduce electricity costs by 40-60%.
  • Smart energy automation further lowers utility expenses.

Government Incentives & Carbon Tax Benefits

  • Companies can avail Accelerated Depreciation (AD), tax credits, and subsidies.
  • Corporate buyers of renewable energy qualify for Renewable Energy Certificates (RECs).

Attracting Investors & Tenants

  • ESG-compliant buildings have higher property values.
  • LEED & IGBC-certified properties command premium rental rates & investor interest.

Climate Resilience & Energy Security

  • Reduces dependency on unreliable grids and diesel generators.
  • Ensures business continuity during power outages & energy crises.

5. The Future of Renewable Energy in Building Sustainability

With India’s push towards 100 GW rooftop solar by 2030, corporate real estate, industrial hubs, and commercial buildings must embrace renewable energy to stay competitive.

🌿 Smart energy automation will drive next-gen sustainable buildings.
🌿 On-site solar + battery storage will become the norm for commercial buildings.
🌿 Net-zero energy buildings will gain higher valuation & tenant preference.

💡 Industry Insight: Buildings integrating renewables + smart BMS will see 20-30% higher asset valuation by 2027.


6. Future-Proof Your Building with Know Your Building

At Know Your Building, we help businesses maximize the benefits of renewable energy integration with:

🚀 Real-time renewable energy monitoring
🚀 AI-driven energy optimization & battery storage management
🚀 Seamless grid + renewable energy balancing
🚀 ESG tracking & sustainability compliance analytics

🔗 Visit Know Your Building to start your renewable energy journey today!

Add of Book Demo Add of Book Demo Add of Book Demo

Conclusion


Similar Blogs


Introduction As global energy demand rises and sustainability regulations tighten, building automation has become a critical driver of energy efficiency. Traditional buildings suffer from energy waste, operational inefficiencies, and high maintenance costs, making automation essential for reducing carbon footprints, optimizing resource consumption, and enhancing building performance. For real estate developers, facility managers, and corporate sustainability […]

Read More >

Introduction The construction industry is one of the largest contributors to environmental degradation, responsible for nearly 39% of global carbon emissions and 11% of energy-related CO₂ emissions from building materials alone. The materials used in building construction, from cement and steel to glass and plastics, have a profound impact on carbon footprints, resource depletion, and […]

Read More >

Introduction Water is one of the most critical yet undervalued resources in building management. As urbanization, climate change, and population growth increase pressure on water supply, businesses, real estate developers, and facility managers must prioritize water conservation strategies to ensure long-term sustainability and cost savings. Buildings account for nearly 25% of global freshwater consumption, with […]

Read More >