Clean energy is not just for large corporations with enough capital to make decisions solely for the good of the environment. For many business owners, going solar can be a strategic decision with significant financial benefits. If you’re wondering if solar power is a feasible option for your business, ask yourself these 4 questions.
1. How much do you currently pay for electricity?
By some estimates, the average commercial property owner saves 75% on their electric bill by switching to solar, but there are numerous online resources available to estimate how much money your business can save on your electric bill each month. This information can also help you determine your payback period, or the amount of time it takes to break even on your solar energy investment. The higher your electricity bill, the less time it takes for the system to pay for itself, so businesses operating in places with high electricity rates can reap considerable financial gains by investing in solar PV.
2. Choose your team wisely
The amount you save by investing in a solar photovoltaic system depends on several factors, including the size and orientation of your roof and the efficiency, durability, and reliability of the equipment itself. Higher quality PV panels that add to your initial cost can end up saving you more money in the long run by reducing maintenance costs, improving productivity, and increasing the life of your overall system. On the other hand, you may find that the most expensive panels don’t necessarily translate to the greatest savings for your particular needs. Make sure you’re working with a solar provider who can help you explore your many options based on purchase and installation costs, power capacity, and the expected life of your solar panels.
3. Compare your financing options
Solar power can be a smart investment with a high rate of return, but financing a solar power system is a complicated process with many variables. Cash purchases produce the greatest savings at the highest initial cost. Those interested in reaping the benefits of ownership without purchasing your system outright can finance the purchase with a solar loan, which allows you to pay the cost of the system through fixed monthly payments. For some business owners, it makes more sense to lease their solar PV system with a solar lease or power purchase agreement (PPA), which generates immediate savings with little to no down payment, though the monthly payments of a solar lease or PPA usually increase. at a predetermined rate each year.
4. Consider the cost in the short term vs. long term savings
To determine their true return on investment, business owners must consider the long-term benefit of going solar beyond their initial cost and immediate savings. In addition to considering your purchase or renewal options, federal tax breaks, rebates, corporate tax credits, and other state tax breaks factor in the short-term cost of solar power. Thanks to increased financial incentives and lower installation costs, the price of solar power has fallen in recent years, while electricity prices continue to rise. Investing in solar power can help stabilize your energy costs and save you from the rising and often fluctuating price of electricity purchased from a utility company. In many cases, solar power can even increase property value, allowing you to see additional financial gains down the road.