Making the switch to solar energy is a big decision for any business. There are many factors to consider, from the initial investment to the long-term savings.
But is a solar energy system a worthy business investment? There are a few things to keep in mind when deciding whether to switch to solar power for your business.
More businesses are going solar than ever before, but the decision to switch to solar energy is not always an easy one. You must consider energy use, installation cost, payback period, buy-back rates, and sun exposure. It is also crucial to consider how solar energy will impact your business operationally. For example, will you need to physically change your facility to accommodate solar panels?
With careful consideration, you should be able to make the best decision for your company.
Energy Usage
Solar energy is a worthy investment for businesses of all sizes. Regardless of how much energy your company uses each month, solar energy can help you reduce your electric costs and protect your business from rising costs in the future. Consult with a solar expert to determine the size of the solar energy system that your business will need based on your property size and energy usage. By having a solar energy system sized appropriately, you will maximize your utility savings and be able to reinvest those funds into your business.
Cost of Installation
Some people believe that solar energy systems are too expensive to install and maintain, but this is no longer the case. Solar panel prices, for example, have dropped drastically in recent years.
There are also many ways to offset the initial investment in your solar energy system. Several financing options are available that can help make the switch affordable, including no-money-down options. Along with various state incentives, the federal government offers tax incentives for businesses that install solar energy systems. These combined factors make solar energy an increasingly attractive option for businesses looking to reduce or completely eliminate their energy costs.
Payback Period
The current ROI for solar energy systems averages five to ten years or less. In some cases, the payback period can be as short as two to three years. Solar energy is a guaranteed ROI, and the monthly savings will pump money back into your business.
The payback period is the amount of time that it takes for your solar energy system to pay for itself. How your business opts to finance your energy system will largely define your ROI. Other factors include installation costs, system size, and if net metering is available in the state where your property is located.
Net Metering
Net metering is when your solar energy system produces more electricity than your business is using and excess energy is sent back to the grid. This excess energy is then purchased by your utility company, and a credit for the energy will show up on your next monthly utility bill. The more utility credits that you accumulate for the extra energy that your solar panels produce, the more profit your business has to show for it.
Many states offer net metering. Each state has its own rates and rules that will apply to your business property. If your state does not mandate net metering, you may still be able to sell the excess electricity that your solar panels are producing back to the grid. This is known as a buy-back rate, and it will also help offset the cost of your solar system. Check with your local utility provider to see what buy-back rate it offers.
Your business can reduce or even eliminate its electric costs by switching to solar energy. There are affordable financing options and government incentives, so there has never been a better time to switch to solar. Solar energy has a guaranteed ROI and is a wise investment for any business.
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!