Sep 1, 2022
Read Time: 3 min
Utilities provide power and light to a business but can also be a considerable expense. Commercial solar energy systems offer a way to escape rising utility costs.
This article will explore how commercial solar energy systems enable you to save money on your energy bill and provide a path to energy independence.
Solar is a viable option for commercial operations of all sizes, from small businesses to large corporations. The cost to install solar energy systems has dropped by 60% over the last decade, making it more affordable than ever. Solar energy can help reduce your business's reliance on traditional energy sources, which can fluctuate in price and may be subject to emissions caps in the future. Solar energy is also a hedge against rising utility rates; once you install your solar energy system, you lock in the energy price for the system's life.
Installing a commercial solar energy system can help reduce your energy costs in five ways.
1. Protect your business from rising energy costs
As energy prices continue to rise, it's more important than ever to find ways to protect your business from market volatility. Solar energy presents a unique opportunity for companies to lock in energy costs at a fraction of the current rate. By installing a commercial solar energy system, you can prepay for decades’ worth of energy use, insulating yourself from market fluctuations. Solar energy also offers a predictable monthly cost, which can help you budget more effectively.
2. Solar energy systems quickly pay for themselves
Solar energy systems are a significant investment, but they can pay for themselves through savings on your energy bill. The average return on investment is five to ten years, but this varies depending on factors like financing, tax breaks and incentives, utility rates, panel size, and shading factors. Once you've reached ROI, your energy bills will be reduced or eliminated for the life of your solar energy system, typically twenty-five to thirty years or even longer.
3. Avoid expensive peak energy rates
Peak pricing is when utilities charge higher rates for energy during peak demand periods. Installing a solar energy system can help you avoid these expensive rates by generating solar power during the day, when peak pricing is often in effect. You can reduce your energy costs by using solar power during peak periods.
4. Reduce or eliminate monthly electric bills
Solar energy is one of the most cost-effective ways to reduce your business's monthly electric bills. The average commercial solar energy system can reduce energy costs by 75% or more, and companies with higher electricity usage can see even more significant savings. A solar energy system can provide 100% of your commercial building's power needs, eliminating your electric bill. With utility rates rising yearly, switching to solar energy is a solid investment that will help your business keep pace with increasing electricity costs.
5. Lower operating costs through electric bill offsets
When you install a solar energy system for your business, you may be able to take advantage of electric bill offsets, like net metering or solar renewable energy credits (SRECs). Research which programs are available in your state, as policies can vary.
Net metering is a policy that enables you to sell excess energy generated by your solar energy system back to the utility company. When your business generates more energy than it needs, the extra power is sent back to the grid. Your meter runs backward, crediting your account for the excess energy. At the end of the month, your utility company calculates your net metering credits and bills you for the net amount of energy used. Net metering can significantly reduce your business's monthly energy bill or even eliminate it.
SRECs are credits that you can sell or trade to utility companies to meet their renewable energy goals. One SREC equals 1,000 kilowatt-hours (kWh) of solar energy generated. The value of an SREC varies depending on market conditions. SRECs can offset the cost of your solar energy system and help you shorten your payback period.
If you're feeling the squeeze of rising energy costs, it might be time to consider a commercial solar energy system. Not only will you escape those increasing rates, but you may also become more energy independent as a business. With a customized solar energy system designed specifically for your property and needs, you can predict your ROI with certainty and reduce your energy bill month after month.
At Geoscape Solar, we help businesses utilize solar energy for profit. Your business will become energy independent, be able to decrease utility costs, and leverage available solar incentives for a quick ROI.
To discover how installing solar energy on your property will increase your business profitability, contact one of our energy specialists!