Regardless of the size of the business, any smart business owner want to make decisions that make good business sense. It doesn’t make much sense if your decisions do not enhance your bottom line, and that is understandable. That is why it’s often not enough to urge a business owner to install a solar system because it’s good for the environment.
Although it’s true that using solar energy helps the environment, that’s not the only benefit you can enjoy from it. Let’s look at the 3 main benefits you’ll enjoy when you switch your business to solar energy:
1. Lower energy bills
Solar panels allow you to generate your own power, so you can significantly reduce and even eliminate your electrical bill. This is good news for any business, big or small, because it cuts your operating costs and positively impacts your bottom line. Solar panels require minimal maintenance to perform at their optimum, so what you get is a system providing clean electricity quietly for up to 40 years.
The IRR for an average solar system can vary dramatically based on a number of factors. And in many instances it makes a lot of sense. Here are some examples of average IRR for solar systems:
- Virginia: 9.45%
- New York: 10.83%
- California: 13.68%
- Hawaii: 47.11%
2. Financial incentives
Businesses that install solar panels receive a percentage tax credit on the cost of the solar system. Many businesses today gain between 15 and 25 percent in post-tax returns, which amounts to thousands of dollars in savings annually. Further, as energy costs rise, commercial building with built-in renewable energy sources will be in serious demand, which will also mean that the value of your assets will go up. In fact, experts estimate that when these benefits are added up, a business can realize over 150% return on investment. Other financial benefits include:
Accelerated depreciation: Businesses can deduct 85 percent of the value of the solar asset from their taxes, providing another significant offset to the upfront cost of a system array.
Performance-based incentives (PBIs): PBIs, including solar renewable energy certificates, are a way for solar owners in some markets to receive payment from their utility for the solar electricity that their system generates. These incentives can be significant and greatly enhance financial returns for system owners over the life of the system. Via Energy Sage
3. Lower carbon footprint
Let’s wind up where we began. Producing your own solar energy is one of the most significant ways in which you can contribute to protecting the environment. It decreases the amount of fossil fuels utilized, thus reducing the pollutants responsible for global warming. This will not go unrecognized as your business will be labeled ‘green’, which will not hurt your PR or CSR efforts in the least.
Reputation for Quality
First, the actual decision to install solar power on your building takes time and diligence to make sure the requisite financial and operational components fit within your business model. More than anything, it represents a commitment to quality, care and operational efficiency. These are critical factors needed to acquire and retain tenants with any building project and demonstrate a corporate commitment to quality and the environment, separate from your competitors.
While more commercial buildings are beginning to see the virtues of going green, these types of complexes are still in the minority. By marketing your building as a green building, you raise the likelihood of media attention as you are the forefront of modern construction. What’s better, most of the time this media attention is free and helps tremendously to spread the word about your business. Via Clean Energy Experts
If you would like more information or professional assistance for your commercial solar needs, please contact us today.