Commercial solar panels for business have the potential of saving money for companies each year. Unfortunately many business owners have neglected to study the financial and operational benefits of adopting solar power. This is mainly because they regard solar power as having hefty up-front costs.
Hopefully, the following advantages of commercial solar panels for business will convince you:
1. Incentives and Lease Options
State and federal governments have introduced numerous financial incentives to encourage business owners with the purchase of solar power systems. An example of this is the Investment Tax Credit. It provides a 30% credit to businesses who install a new solar power system. There isn’t a cap on the amount of credit you can claim which means you can invest in any size system and at any cost. The ITC can be rolled into the next taxation year if it’s unused in the present year. In addition, each local and state utility has their own discount system to help with the cost of opting for a solar system. The discount increases with the size of your system.
Many states also have net metering in place. You pay for the net amount of electricity used. With a solar system, your business can “bank” excess electricity that is generated. In many cases, you can receive a credit of up to 100% on your next electricity bill!
Some businesses are unable to come with an up-front cash instalment for their solar panel system. In such cases, many states enable companies to lease out their panels for a period of 15 to 20 years. Your business may not be eligible for the state or federal financial incentive. However your business will only pay for a fixed rate of use for the solar system and receive benefits of a stable and cheap source of power.
2. Operating Advantages
Reduce Operating Costs on your Building
With a solar panel installation, you can quickly reduce your operating expenses. Irrespective of whether you’re leasing or purchasing your system, you can expect to see a significant decline in corporate utility costs; even to the point where the savings will pay for the entire system.
Depending on which business model you use, the savings incurred by investing solar energy can influence different aspects of your business. For instance, if you’re a commercial building owner who obtains rent from tenants, you can deal with high utility rates in two ways:
(a) Pay for these costs yourself.
(b) Pass all or some of these expenses to your tenants.
Both paths have their own consequences. If you go with option A, you can reduce your profit margin. With option B, you may over price your tenants and experience a high vacancy rate (and loss of revenue). You may avoid this Catch-22 by either keeping favourable lease rates with your tenants or ensuring your building has a 100% (or close to it) occupancy rate.
Protection Against High Utility Rates
The power market is volatile. There are seasonal swings in utility prices (i.e. higher consumption during the warm and cold months). Each year, electricity rates rise. However an investment in solar energy can insulate your business from rising utility rates because you will produce your own electricity. With solar, you have a guaranteed rate of electricity. This means you may use it as a fixed expense, resulting in a more stable and predictable balance sheet.
High Reliability and Low Maintenance
Solar power systems operate silently, meaning there is no noise because there are no moving parts. Accessing them is easy. Individual solar cells are delicate, but they are enclosed in protective, tempered glass, framed with non-corrosive aluminium. Since solar panels constantly face the elements, they’re built to last, with a lifespan of up to 25 years. They only need a yearly maintenance routine which is performed by your installation company.
3. Marketing Advantages
Builds your Reputation
When you decide to invest in commercial solar panels for business, it indicates your commitment to the environment, operational efficiency and quality. These factors will help you acquire and keep tenants. This will set you apart from your competitors.
If you choose to incorporate solar power into your building, in addition to increasing tenancy number and lower operating expenses, it can increase its economic value. Investors and real estate trusts are drawn to such properties.
Commercial solar panels for business can have many benefits. To learn more about this technology, contact OhSolarMio.