Investing in solar energy is something that makes business sense. By making this change, you can cut your existing operating costs and provide peace of mind against the increasing energy costs, while tapping into the growing number of customers searching for responsible vendors that are dedicated to utilizing sustainable energy strategies.
The recent cost breaks in solar equipment prices along with government incentives have made solar power a smart financial decision for all businesses, regardless of size or industry. In fact, making an investment in solar power can help to generate quick payback along with long-term savings. If you have been wondering how to save money on energy, solar may be the answer. Keep reading to learn more.
Save Money on Energy
There have been many discussions about sustainability and being able to market your business as renewable, and how important this is. However, the main driver behind the implementation of solar energy for businesses is the ability to reduce electrical costs. In fact, energy savings can be significant.
According to data from EnergySage, on average, a commercial property owner in the United States can help to reduce the total energy costs by up to 75 percent just by opting for the installation of a solar system.
An Ongoing Free Source of Electricity
It’s estimated that most businesses will be able to pay off their solar panel purchase and the installation costs within three to seven years. The biggest benefit of going solar is going to start after that period has passed. At this point, the business will have a free source of electricity for the next 25 to 35 years, which is the average lifetime of modern solar systems.
The purchase and installation of solar systems is similar to prepaying for the next 25 to 35 years of energy bills. Also, today’s solar systems are sold with long warranties, with the majority of manufacturers offering 25-year performance guarantees. This shows just how reliable these products are.
ITC – The Federal Investment Tax Credit
Business owners who install the solar power system also receive a federal tax credit that is up to 30 percent of the total cost of the system. There are several states that also have individual tax credit incentives for businesses that make this investment.
Businesses have the ability to deduct up to 85 percent of the total solar investment that is made within the first year of it being installed. This means they can offset the initial cost of the solar system.
Maintenance Free and Reliable Energy
Modern solar energy systems require very little to no maintenance. When you think about it, it’s clear why – there are no moving parts. When you think about solar, you usually think about the fixed-tilt system, which is the most common option. These are installed on a rack, which means that nothing is going to move.
Supports a Green Approach to Business
When you avoid using non-renewable energy sources, you can create an image for your brand that is much more environmentally responsible. This is going to help support your green business aspirations.
The Cost of Installing a Solar Energy System for Your Businesses
Since 2011, the cost of solar panels has dropped by as much as 80 percent. The majority of small businesses will not have to spend money upfront because the system providers offer an array of flexible options, including PPAs, solar leases, or solar loans. Each of these is considered flexible investment options, which makes it possible for virtually anyone to “go solar.”
The actual cost of a solar energy system for a business is dependent on the energy demand of the business. This means that the cost may vary quite a bit from one business to another. For example, the 30kW solar power system is perfect for the majority of small and medium-sized businesses. It will cost around $75,000 to buy and to install. However, there are systems that are smaller and bigger than this to consider.
Is the Installation of a Solar System Right for Your Business?
This is something that each business must figure out on their own. Take some time to consider the information here to see if this is a smart investment for your company. Being informed and knowing what options and costs that are involved with the installation of a solar system is something to consider carefully, as this will determine if it is a financially feasible option for a business. Being informed is the best way to ensure that the right decision is made for your business now and in the future.