Switching to Commercial Solar: Worthy Solar Investment or Not?
Commercial solar installation is a good option for you to take control of your electricity expenses and decrease your business operating costs. Although, for many businesses, the upfront cost of commercial solar panels may be a major obstacle. However, Commercial solar investments are still worthwhile due to the potential long-term savings and environmental benefits.
So, if you are seeking solutions to reduce high energy bills and cut the operating costs of your business, commercial solar installation is a worthy investment.
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:
-
Levelized cost of energy (LCOE)
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 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. The grid electricity is getting expensive due to inflation in the U.S. However, if you have a commercial solar system, even to a limited extent, you can reduce the impacts of growing energy expenses. The Inflation Reduction Act’s additional federal tax credit of 30% will enable you to capitalize even more quickly.
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. Going solar can help you target the environment-conscious audience.
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 FTC and state solar incentives for businesses also help 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.
The Solar Energy Industries Association (SEIA) reports that, on average, the cost of commercial solar in the first quarter of 2022 was $1.64 per watt. 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.
What Types of Businesses Benefit from Solar Panels?
Making the switch to solar power can benefit for any kind of business, from manufacturing facilities and service providers to cafés and boutiques. This wide range of applications demonstrates the adaptability of solar energy and its function as a spur for environment friendly corporate operations.
Is commercial solar installation worth it?
The answer is clearly yes for a large number 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 to a top solar installer near you like SolarSME and switch to commercial solar to maximize savings and low operating cost of your business.
