What Businesses Should Know

Common Myths About Renewable Energy

Key Takeaways

Many common myths about renewable energy stem from outdated assumptions about cost, infrastructure requirements, and switching providers.
Renewable energy plans are not always more expensive and may offer pricing structures that suit different business needs.
Businesses do not need to install solar panels to support cleaner energy generation.
Switching electricity providers is often simpler and less disruptive than many businesses expect.
Choosing a green energy plan can support Environmental, Social, and Governance (ESG) goals and broader sustainability efforts.

Introduction

As sustainability becomes a greater focus across industries in Singapore, more businesses are exploring renewable energy as part of their long-term plans. Despite growing interest, there are still plenty of misconceptions about how renewable energy actually works.

Some businesses assume it is too expensive. Others think they need to install solar panels or overhaul their existing infrastructure before they can make the switch. There is also a common concern that switching electricity providers will be disruptive or difficult to manage.

The reality is often much simpler. Today, many renewable energy options are designed to fit easily into existing business operations, making it more practical for landlords and commercial building owners to support sustainability goals without major operational changes.

Below are some of the most common myths about renewable energy and what businesses should really know.

Myth #1: “Renewable Energy Plans Are Always More Expensive” 💸

One of the most common myths is that switching to renewable energy automatically means paying significantly more each month.

In reality, pricing works similarly to conventional electricity contracts. Costs are influenced by wholesale market conditions, contract duration, and whether the business chooses fixed or market-linked pricing.

At Flo Energy, we offer a range of business electricity plans to help you balance sustainability goals with operational and budgeting needs. This includes:

Fixed-price plans for businesses that prioritise pricing stability
Pool plans for those looking to track wholesale electricity prices more closely
Hybrid plans that combine elements of both for greater flexibility and risk management
Simplified plans for SMEs looking for more affordable pricing

At the same time, we support cleaner power generation by matching 100% of your electricity usage with regional Renewable Energy Certificates (RECs) and redeeming them on your behalf.

Rather than assuming sustainable electricity plans always cost more, businesses should compare the overall structure, flexibility, and long-term value of each plan before making a decision.

Myth #2: “Businesses Need Solar Panels Before They Can Go Green” ☀️

Many business owners assume that adopting solar power and installing solar panels are the only ways to go green.

While on-site systems can work well for certain commercial properties, they are not the only option available today. For example, a Solar PPA allows businesses to adopt solar energy without bearing the full upfront cost of purchasing and maintaining a solar panel system themselves. Under this arrangement, a third-party provider typically installs and manages the system, while the business purchases the generated electricity through an agreed pricing structure.

This can be especially useful if you’re operating in older buildings, multi-tenant developments, or properties with limited rooftop space. It also lowers the barrier to entry for businesses that want to pursue sustainability goals without committing to major infrastructure upgrades or operational disruption.

Myth #3: “It’s Too Complicated to Switch Providers” 💬

Another myth is that switching to a renewable energy supplier will be disruptive, time-consuming, or difficult to manage.

In reality, for businesses already operating within Singapore’s Open Electricity Market, the switching process is usually much simpler than many expect. In most cases, there is no power interruption, rewiring, equipment replacement, or disruption to daily operations.

Flo Energy helps coordinate much of the transition process for you, making the switch more convenient for commercial landlords and businesses managing multiple properties or tenants. This can be especially helpful for businesses that may not have the time or internal resources to manage the process themselves.

That said, we still recommend reviewing your existing contract end dates, any early termination clauses, and compatibility with the new billing structures. Having these details sorted out early can make the transition even smoother.

Myth #4: “Switching to Renewable Energy Doesn’t Really Make a Difference” 🌱

Some may feel that changing electricity plans is too small a step to make a real difference. However, businesses rely on electricity every day. It powers lighting, air-conditioning, equipment, office systems, production processes, and many other essential operations.

That makes electricity a practical place to start when looking for ways to support sustainability goals.

Choosing a green energy plan can also support a business’s wider sustainability efforts in a way that is easy to understand and communicate. For example, it could:

Contribute to ESG goals and reporting
Support internal sustainability initiatives
Show customers, partners, and stakeholders that the business is taking active steps towards cleaner energy use

Of course, switching plans is not the only action a business can take. However, it is a realistic and accessible first step, especially for companies that are not ready for larger upgrades or infrastructure changes.

Moving Forward With Cleaner Energy, One Practical Step at a Time

Renewable energy may still come with its fair share of myths and misconceptions, but many of these concerns are easier to address once you understand how modern electricity plans work.

Flo Energy is here to make it easier to get started. From renewable electricity plans structured for businesses to flexible pricing options that suit different operational needs, we aim to make cleaner energy more accessible without adding unnecessary complexity. No matter what your business prioritises, we’re here to help you find a plan that works for your operations.