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Switching to Commercial Solar:
Worthy Solar Investment or Not?
Power outages and surging utility costs are becoming a serious concern for businesses across the United States. For most businesses, such outages mean lost productivity, increased operating expenses, and reduced profit margins. As businesses seek reliable, affordable energy, commercial solar is the best option. Besides reducing monthly utility bills, solar offers energy independence, protection against rising rates, and improved brand image. Also, federal and state-level solar incentives make it more affordable for companies to switch to clean power.
In this article, we will conduct a cost-benefit analysis of installing commercial solar panels and highlight how taking your business to solar power can be profitable.
In what ways is commercial solar installation beneficial for your business?
Taking your business to solar is not only about savings on high electric bills, there are many compelling reasons to switch to solar. Some of the major considerations are:
Low Operational Cost
Solar energy is a way to protect yourself from rising energy prices. To decide if going solar is the best option for your company, you must consider all available financial options. ROI is not the only factor in determining your solar investment’s worth. The actual value is analyzed by evaluating the fixed costs of power provided by your solar panels and battery storage system with the expected increase in your utility-generated electricity expenses. Grid electricity is getting expensive due to inflation in the U.S. However, if you have a commercial solar system, you can reduce the impacts of growing energy expenses. Furthermore, the 30% federal tax credit will enable you to reduce the commercial solar installation cost. However, this best tax credit is expiring this year end.
Peak Shaving
If you are grid-connected, you are dependent on utility. Also, you have to pay the rates set by the utility, including the increase during peak hours rates. Usually, the commercial utility prices are a combination of demand (kWh you potentially use) and capacity (kWh you used). In summer, these demand charges frequently exceed your capacity rate by a big margin.
But if you have commercial solar panels, you will lower your demand during these peak hours and save your operating expenses.
Furthermore, if you operate around the clock, a battery energy storage system can save you even more money on electricity.
Increase Resilience
Even 1 hour without electricity may impact business operations badly. But when you have solar + battery storage, you have a backup plan in the case of an electrical blackout. By combining the two technologies, you can maintain uninterrupted operations for several days or weeks, which will benefit your customers and staff as well.
Shorter Solar Payback Period
A business can recover its solar investment quickly as compared to a residential investment. One of the main reasons your company should go solar is the short payback period. When solar panel generates power, your profits and savings will rise. Also, you have the option to keep solar energy stored for later use or sell it back to the electrical grid.
Carbon Footprint Reduction
By going solar, you may reduce your dependence on the electrical grid, which can lower your carbon footprint. It will be beneficial for the environment and business as well. Moreover, Commercial solar installation can boost your brand value and promote your company as an eco-friendly business.
What are the factors impacting the cost of commercial solar installation?
Installing commercial solar panels may come with a high upfront investment. However, the long-term financial benefits should take precedence over the initial cost. As commercial solar panels lower electricity expenditures, they usually offer a high return on investment. Furthermore, 30% of the FTC is still available to minimize solar installation costs. You can also consider financing options like solar loans, leases, or PPA if you wish to take your business to solar with less investment. However, every commercial solar project is different, and the cost of the solar panels may vary depending on factors like:
Commercial Solar System Size:
The size of a solar energy system is the main element to determine the cost of solar. The bigger the system, the higher the cost but also the more savings will be with solar.
Solar Panels Efficiency and Technology:
Although investing in high efficiency solar panels and latest technology may incur higher costs, they can potentially provide greater energy output and long-term savings to your business.
Mounting and Racking:
Costs may vary depending on the type and complexity of mounting and racking systems required for the installation. Different installation types (roof-mounted, ground-mounted, etc.) have different labor, solar engineering, material, and permitting requirements.
Solar Permitting:
There may be additional expenses for system adjustments, paperwork, and inspections in order to comply with local codes, solar interconnection requirements, solar permitting requirements, and regulatory requirements.
Maintenance and Warranty:
It is essential to take into account the solar system’s warranty coverage and ongoing maintenance expenses.
Is commercial solar installation worth it?
The answer is clearly yes for all types of businesses. Investing in commercial solar offers several advantages, such as reduced costs, increased energy security, environmental sustainability, better reputation among consumers, and compatibility with emerging technologies. When thinking about installing solar panels for your company, there are many factors to take into account, but the potential financial savings and the reduction of carbon emissions from your energy use are still compelling reasons to make the move. By making the switch to solar energy, you can save money on your bills, protect your company from future energy price shocks, and significantly contribute to a better future.
So, take your business to the new heights of success with clean, renewable energy. Contact a top solar installer near you, like Solar SME and switch to commercial solar to maximize savings and low operating cost of your business. You can also get a FREE Quote with our smart solar calculator for savings estimation.
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