Businesses have to deal with multiple recurring expenses, with electricity costs being one of the most substantial. In fact, payment for utilities may be one of the most expensive overhead costs commercial building owners have. Keeping energy consumption to a minimum is just one reason a solar panel installation is one of the most viable solutions for businesses.
Find out some of the other Compelling Reasons that make a Solar Panel Installation a Worthy Investment, even for Small Businesses, by Reading on below.
1. Reduces Dependence To Non-renewable Energies
The world’s demand for power continues to rise. However, the current power sources commonly used, such as coal, natural gas, and oil, are primarily finite. This means that these sources can be depleted in the years to come, resulting in severe power shortages.
Keep in mind that establishments rely on power to run basic office tasks and essential processes such as manufacturing or production. Without power, businesses will have downtimes, causing huge losses, particularly in the food and pharmaceutical industries. However, the sector can prevent this potential scenario by switching to renewable energy sources—the most abundant of which is solar power.
Solar panel installation for commercial consumers requires expert help. To begin your journey towards a more sustainable business model, contact the solar energy contractors nearest you. For instance, if you’re in Florida, check out the best provider of solar panels in Miami, FL to help you get started.
2. Solar Energy Tax Benefits
Apart from the reduced power costs, companies that choose to have solar panel installations benefit from local, state, and federal tax incentive programs. All government levels offer rewards and financing programs to commercial and residential consumers who wish to tap green energy.
Check out some of the significant incentives for solar energy utilization below:
- Federal Investment Tax Credit (ITC): The federal government imposes a 26% rebate on your overall solar panel installation costs. The rebate, however, will reduce to 22% in 2023 and 10% after the said year.
- Accelerated Depreciation: The federal government also runs the Modified Accelerated Cost-Recovery System (MACRS), which allows consumers to recover the cost basis of the solar panel in the first year.
- Solar Renewable Energy Credits (SRECs): This performance-based program allows solar energy users to earn based on the amount of energy they’re able to generate. These programs help businesses improve cash flow and reduce the expenses associated with paying for a solar panel installation. With solar panels, you’ll have more sustainable working spaces that positively impact your staff’s wellbeing.
3. Solar Energy Is Cost-Effective
Most commercial establishments are hesitant to have solar panels installed on their premises because of upfront costs. For instance, the installation of a solar panel system with a 25-kilowatt capacity costs an average of USD$50,211, according to EnergySage. However, the same article also discovered that business power costs fell by 89%, reaching an average of USD$557 before the eco-friendly power source conversion.
Because of its cost-reduction benefits, an increasing number of residential and commercial clients are turning to solar energy as a primary or complementary power source. The Solar Energy Industries Association (SEIA) reports that yearly solar panel installation have surpassed industry targets for the past three years, with a total of 108.7 gigawatts (GWdc) installed capacity as of the second quarter of this year.
4. Solar Energy Offers Positive Return On Investment
With any investment, businesses have to wait for years before yielding a return on investments (ROI). In the case of solar panel installations, you’ll spend anywhere from two to five years to get what you paid for. The ROI period often depends on the type of system you have and the size and capacity of your solar power system.
Once you get your returns, you won’t have to spend for anything, as solar panels require low maintenance works and have warranties that last 25 years or more. Thus, besides not needing to pay anything or enjoying up to 89% off of your previous electricity bills, as well as availing of tax credits and other incentives, you’ll also enjoy a better cash inflow and stable electricity for your business.
5. Solar Energy Use Can Help Your Business Reputation
The global campaign for better environment-friendly practices has led several key industry players to improve their manufacturing processes. Instead of reducing resources consumption, companies are trying to reduce their carbon footprint and are reaping its rewards.
Companies that care for the environment in many ways, such as using recycled materials, planting trees, or encouraging upcycling, often use these eco-friendly initiatives to attract more customers. Being eco-friendly can put businesses in a positive light among consumers. Switching to a green energy source can be used as a marketing tool to help improve your company’s reputation and expand your client base.
The Bottom Line
Going green and tapping solar energy for your business may require a considerable investment cost, but you’ll reap numerous financial rewards down the road. A solar panel installation allows your venture to enjoy business tax credits and other discounts, apart from reducing your power bills. Most importantly, solar energy offers the most reliable and affordable power solution and is always available as long as the sun is shining.