Why Should You Install Solar For Business?

Strategic Investment

For many business owners contemplating an investment in solar systems, navigating the market can be overwhelming and confusing. The perceived high initial costs of solar technology, such as solar panel systems, often deter small business owners from making it their primary choice. However, this trend is evolving, driven by consistently decreasing prices and enhanced efficiency of commercial solar panels.

To illustrate, the cost of installing solar panels was approximately $8.50 per watt in 2009. Thanks to advancements by solar installers, manufacturers, and panel makers, solar panels have become more cost-effective and efficient. The cost has significantly decreased from $8.50 per watt to $2.18.

Business owners stand to benefit from tax credits for solar panel installations and the reduced cost of the panels. Companies receive a 30 percent tax credit on solar system installation costs. Moreover, new solar panel owners in many states are eligible for additional tax credit incentives.

While there is an initial upfront cost, the long-term savings make it a financially sound decision.

Electric Energy Independence

Commercial solar systems offer businesses the potential advantage of energy independence. By installing a self-contained solar system, a business can break free from reliance on the local power grid. This saves significant money on overhead expenses and ensures a reliable and continuous electricity supply. Once your business transitions to solar, it becomes less susceptible to disruptions in the commercial grid.

This is particularly advantageous for businesses that cannot afford interruptions in their power supply. For example, power your business, such as sensitive industries like cold storage, where constant electricity is crucial, can benefit significantly from a reliable power source.

In regions like California, where power outages impact the business sector, adopting solar electricity ensures a constant and dependable electricity supply independent of the commercial grid’s status. Choosing the right commercial solar company and a well-installed and configured solar panel system is 100 per cent reliable.

A network of interconnected solar panels utilizes the photovoltaic process to convert sunlight into live alternating current. This allows you to independently generate the same electrical power you traditionally receive from a commercial power provider.

To enhance reliability, you can incorporate a battery system to store electricity during periods of solar power generation. This ensures a continuous power supply when your business needs a backup, such as during the night or in fading light.

Reduced Energy Bills

Traditional electricity generation often relies on coal or other fossil fuels, posing challenges in terms of renewability. Fluctuations in energy supply and electricity costs can occur when relying on these sources. In contrast, solar energy harnesses a free and abundant resource – the sun. All it takes is allowing technology to capture sunlight; the rest is taken care of.

Typically, commercial solar arrays convert sunlight into electricity, enabling businesses to generate power and reduce dependence on the conventional power grid. Installing a solar panel system empowers a company to produce electricity, significantly saving energy expenses. This business decision for energy independence ensures a more secure and sustainable energy source and shields against price fluctuations associated with traditional energy sources. Solar provides a strategic advantage, aligning your business with a cost-effective and environmentally friendly energy solution.

Adopting commercial solar panels can lead to a substantial 75 percent reduction in energy costs for the average commercial company in the U.S. To put it into perspective, the average business spends over $20,000 on electrical expenses monthly, enhancing cash flow and providing a significant financial benefit.

When commercial businesses make the switch to solar energy, the initial investment in solar technologies, which may last up to two decades, can be as low as $500. The shift to clean energy often results in decreased electricity rates for companies, freeing up funds that can be redirected toward operational expenses and facilitating business expansion.

Durability

When obtained from the commercial grid, electricity has become a commodified resource. It is bought and sold based on your business’s ever-changing dynamics of supply and demand. Drawing power from the grid subjects you to user tariffs and the prevailing market conditions, leaving you vulnerable to unpredictable future expenses. Adopting solar energy reduces your reliance on the commercial grid and opens the door to potential energy credits, providing a more stable and cost-effective energy solution for your business.

As per the insights of many futurists, reliance on fossil fuels is expected to decrease in the coming decades; stricter regulations on emissions and carbon footprints associated with gas-fired and coal-generated electricity production facilities will likely make fossil fuel generation more expensive, with consumers bearing the brunt of increased costs. Embracing the use solar energy is becoming crucial not only for environmental sustainability but also as a strategic shift to mitigate the anticipated rise in costs associated with traditional fossil fuel reliance.

This underscores the importance of having a power supply that meets your current needs and secures your future requirements while reducing costs. Fortunately, transitioning your business to solar power is an investment in the future sustainability of your company.

By establishing a self-contained solar production system, you can safeguard your electricity needs as investors do on the stock market when speculating on future market movements. Embracing solar power reduces your electrical consumption costs and ensures a more resilient and cost-effective future for your business.

Solar Incentives

One of the most significant advantages of solar for your business when transitioning to solar power is solar tax benefits. Whether at the local, federal tax, or state level, all government tiers endorse businesses’ decision to embrace clean, efficient, and renewable energy. Additionally, companies can leverage bonus depreciation as part of these tax benefits, providing an extra financial incentive for adopting solar energy solutions.

The primary financial boon of shifting your company to solar energy comes from the Federal Investment Tax Credit. This initiative offers a substantial 26% discount on the total expense of your solar system, courtesy of the U.S. federal government’s tax relief. Additionally, businesses can benefit from accelerated depreciation, providing an extra financial advantage for those embracing solar solutions.

For example, if you invest $20,000 in solar panel installation, you could be eligible for a $5,200 tax credit. Notably, this program has no cap, allowing you to invest as much as you like in solar power and still qualify for the 26% rebate. It’s worth noting that after 2022, the benefit amount decreases, with the Investment Tax Credit dropping to 22% and further to 10% after 2023. Businesses can also explore tax equity as part of their financial strategy when capitalizing on these solar incentives.

These advantageous financial assistance programs and tax incentives underscore the support from state governments and stakeholders for businesses transitioning to the solar power system.

Low Maintenance

Businesses using solar experience minimal upkeep once solar equipment is installed. Thanks to continually improving efficiency, these technologies help your business to be relied upon for extended periods without concerns about maintenance, repair, and replacement costs. Eligible solar panels often come with a 25-year warranty, though they are built to last up to 30 years. Installing a solar system reduces maintenance expenses and contributes to lower operating costs over the long term.

Improved Green Credentials

Consumers actively seek out environmentally conscious businesses when making purchasing decisions. By embracing solar panels at your business, you contribute to a more sustainable world and gain a competitive edge over your counterparts. Demonstrating a commitment to a green approach can be incorporated into your marketing and promotional efforts, resonating positively with stakeholders who prioritize environmental sustainability.

Solar Power Reduced Carbon Footprint

For companies aiming to decrease CO2 emissions, solar energy for homes and businesses presents a compelling solution as it does not emit greenhouse gasses. Furthermore, sustaining a solar electric system requires significantly fewer resources than conventional fossil fuel power alternatives, leading to substantial reductions in carbon footprint.