Is it worth it for companies to go solar?

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 electricity bill by going solar, but there are numerous online resources available to estimate how much money your business can save on your electricity 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 investment. The higher your electricity bill, the less time it takes for the system to pay for itself, so businesses operating in locations 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 PV 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 increase your initial cost can end up saving you more money in the long run by lowering 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 into 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 their system outright can finance the purchase with a solar loan, which allows you to pay for 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 or no down payment, although the monthly payments of a solar lease or PPA generally increase. at a predetermined rate each year.

4. Consider short-term cost vs. long term savings

To determine their true return on investment, business owners should consider the long-term benefit of going solar beyond its initial cost and immediate savings. In addition to considering your purchase or renovation options, federal tax incentives, rebates, corporate tax credits, and other state tax breaks take into account the short-term cost of solar energy. Thanks to increased financial incentives and lower installation costs, the price of solar energy 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 energy can even increase property value, allowing you to see additional financial gains in the future.