Research shows that the worldwide solar energy market will hit $200 billion by 2026. The market is growing at a 20% Compound Annual Growth Rate (CAGR).
As a business owner, the cost of electricity is one of the highest overhead costs you are facing. Since you rely on the commercial power grid, you are subject to electric rate fluctuations.
When the price increases without warning, it adds uncertainties to your business's cash flow management. Isn't it time to lessen that load? There are many ways your business will enjoy going solar.
Solar power is fast becoming a conventional alternative source of energy in America. Have you heard that companies like Intel and Walmart renovate most of their buildings to solar energy?
You may think solar power is not affordable for medium-sized or small businesses at first glance, but that isn't the case. Nowadays, solar panels have dropped in price and offer many benefits to your businesses.
Keep reading this article to learn the incredible business benefits of going solar.
Save on Electricity Bill
Solar panel installation for your business reduces or eliminates your electricity bill. The size of the solar power system and the grid electricity usage will determine how much you will save on your electricity bill.
Going solar will also encourage a prospect of receiving payments for the extra energy you export back to the grid. Solar panels can help cut electric bills by 50% every month.
A net metering facility will aid you in exporting the surplus power from the solar energy back to the grid. That is essential in areas that experience non-uniform or continuous electricity usage.
Cutting Overhead Costs
Every business owner wishes to cut overhead costs. They may include expenses outside operational materials and wages.
Business owners must pay for maintenance, supplies, utilities, and insurance. Electric energy is a major overhead expense that you will reduce.
Having a consistent electricity supply for your business is essential. Every piece of equipment in your business premises will need its share of energy.
There is nothing you can do to make the equipment electrically efficient. Your only task is to lower your overhead power cost.
Going solar is a big step. Solar systems reduce your electricity bills by a big margin. Reports show that an average business will reduce its electrical overhead cost by three-quarters.
The reduction begins after going solar and continues at that rate forever. When you decide to go solar, do you want to replace your commercial power grid or reduce your dependency on its power?
You will still need the grid power for extra support unless you go fully solar. Note that solar systems give you financial reassurance. You are immune from inflation and billing spikes.
So, depending fully on the grid leaves you at their mercy. Solar panels protect you from inevitable inflation year by year.
When you go solar, your rate remains the same unless you add an electrical load. You sleep well knowing you are price-protected.
Since the sun is your electrical power source, you will always know the overhead costs. You can cut them down as you please.
Whenever you use electricity from fossil fuels, you increase air pollution. That is often so in factories and industries that consume a lot of electricity from non-renewable energy.
That is why going solar is a smart and better decision. You are not only saving on electricity, but you also promote green and clean energy.
Solar panels don't need fossil fuels or chemicals to create electricity. That is why they do not release toxic gases into the environment.
Solar energy also reduces carbon dioxide production. Solar energy will be a sustainable and green energy choice for your business.
Solar Tax Benefits
Tax benefits are the biggest reward you will receive from going solar. All levels of the government support the move towards cleaner, efficient, and renewable solar power.
That is why they offer some tax incentives and also financial help programs. These are the primary tax benefits to expect after your business goes solar:
Note that you aren't entitled to accelerated depreciation on the solar panel. That is via a federal government program known as Modified Speed up Cost-Recovery System (MACRS).
Typical depreciation tax deduction on equipment spreads over the product's entire life. But, the MARCS initiative will allow you to write off the total solar system in one year.
The write-off will improve your business cash flow, financing the solar panel installation.
26% Federal (ITC) Investment Tax Credit
The government tax relief will allow you a 26% rebate on the total solar power unit cost. You invest $20,000 on the solar panel installation; you receive a $5,200 tax credit.
Also, you will experience no cap on the program, so you are free to invest as much as you want. You will still get the 26% rebate.
But, after 2022, the benefit will decrease. According to ITC, the rebate will decrease to 22% in 2023 and 10% afterward.
Solar Renewable Energy Credits (SRECs)
Using your solar system's energy production will recover the equipment installation cost. The government sets the SREC to 1,000 kWh.
It is a must for electricity companies to honor and adhere to every SREC your solar system produces.
You do not have to enjoy the tax advantages because you have a solar panel system in your business. The government uses these incentives to encourage businesses to go solar.
Another benefit of going solar is independence from power from the grid. Solar panel installation sees a reduction or removal of your dependency on the local power company.
Also, you will save a lot of cash in the overhead costs. That is so since you have assurance from a reliable power supply, regardless of what is happening to the commercial power grid.
Most areas have constant power failures. If your business is in a power-sensitive industry such as cold storage, you want a reliable and continuous power supply.
Most regions in the U.S. have regular power interruptions due to severe storms. Being self-reliant on a solar power system ensures you have a dependable source of electricity.
No matter what happens to the grid power, your business will have a continuous power supply from your solar panels. A professional solar installer ensures your system is completely dependable.
Unlike generating equipment or machinery, the system does not have moving parts. A series of panels interconnect to convert sun rays through a photovoltaic process.
That way, they produce live alternating current. The current is like the grid supply, but now you produce it yourself.
You also have the option of storing power in a battery system. Energy will always be available.
Solar Energy Longevity and Sustainability
Most people do not realize that commercial electric power is a commodity. They sell it based on supply and demand. Drawing from the grid exposes you to current market forces and user rates.
That means you do not have protection from future costs. Predictions show that we will all be less dependent on fossil fuels in the coming decades.
Coal and gas-fired power generation stations have an emission and carbon footprint regulation. Meaning, fossil fuel generation costs will go up, which will pass down to the consumers.
Area with a suitable water supply relies on it to turn generators that produce hydroelectricity. But, with an expansion in hydroelectric production, the areas will be prone to flooding.
Flooding is not acceptable in premium land areas. Hydro plants limit their capacity for output which many stations maximize.
Other alternative power sources like nuclear plants have a doubtful future. That is so with the volatility of accidents and nuclear waste problems.
Every alternative leaves the untapped renewable power source; the sun. Solar power is now the future answer to low overhead power production.
When your business converts to solar, you invest in your future. Like how investors bet on the future in the stock markets, you can also hedge your electrical bet with a solar panel installation.
Consider Going Solar
Solar panels are an amazing emerging sector. Though they aren't new, they are also not well known, especially in the business sector.
It is time to forget the commercial grid power supply and start generating your own power for your business. Going solar is a great step into a green and clean future.
Are you looking for a professional solar installer? At Enlyten Energy, we are a leading solar company that can help you shift and transition to solar power. We also operate as an independent solar business.
Schedule an appointment to enjoy a more sustainable electrical energy supply.