Many expenses come your way as a business owner, but one that’s likely to affect your bottom line is the cost of electricity. When you’re reliant on the power grid, your business is subject to electric rate fluctuations and sudden price increases. It might be time to consider a more reliable, cost-effective and beneficial energy source to power your business: installing a solar panel system.
While solar panels have quickly become the go-to choice for leading companies like Walmart and Intel, you don’t have to be a Fortune 500 company to benefit from this rapidly growing, clean energy source. With affordable pricing and many benefits, commercial solar panels are now an affordable energy source for small and medium-sized businesses as well as large corporations and organizations.
In this post, we’ll discuss why a growing number of businesses have flipped the switch and are reaping the renewable energy benefits from their solar panel installations.
The Benefits of Solar Energy for Your Business: Why It’s Time to Make the Switch
There are several key benefits that make solar energy a good choice for businesses. Besides using renewable sources like the sun, you’ll see an excellent financial return on your investment over time and enjoy fixed utility rates for decades. You can even offset the installation costs through business tax credits and incentives.
Over the last few years, solar power has become a more affordable and reliable alternative energy option. It’s also a completely dependable source of power, which includes being both a primary electrical provider as well as an economical backup one.
Solar energy also provides significant financial benefits for business owners. For example, after making the switch to solar, the average commercial business owner saw their monthly electricity bill reduced from $1,950 per month to $500—a 75% decrease in cost.
Staying ahead of the game and embracing innovative energy solutions is crucial in today’s evolving market. More and more businesses have realized the benefits of solar energy and have taken advantage of state and federal financial incentives. Plus, the solar energy sector is thriving – the Solar Energy Industries Association reported that American companies and businesses are installing record levels of solar panel systems on their rooftops, carports, and property – they now account for 14% of the total U.S. capacity.
Although the U.S. solar power industry currently only accounts for 1% of total electrical production, the National Renewable Energy Laboratory predicts that it will soon reach 40%. By making the switch to solar, your business will not only save money, but it will also be an investment in a bright and sustainable future.
The Benefits of Solar Power for Businesses
Maximizing the benefits of your solar installation investment starts with weighing the pros and cons and making a research-based decision. As a responsible business owner, you want to make the best choices that reflect your company’s current energy needs and future goals.
Evaluating the pros and cons of solar energy, like any investment, requires a comprehensive understanding of what it could deliver. Here are five of the primary benefits:
- Solar can reduce your overhead costs on Day 1
- There are long-term sustainability benefits
- Solar gives your business the opportunity to be energy independent
- There are tax benefits and incentives available for commercial solar projects
- Solar is an investment that provides continuous financial and environmental returns
By taking the time to research and understand the advantages of solar power for your business, you can make an informed decision that benefits both your bottom line and the environment.
Reduce Your Overhead Costs with Solar Panels
As a business owner, cutting overhead costs is a priority. From supplies and operational materials to utilities, every expense adds up. But what if you could reduce one of the biggest overhead expenses with a single investment? That’s what making the switch to solar power can do for your business.
A consistent energy supply is essential to operating your business efficiently. Whether it’s electric heating and cooling systems or machinery powered by electricity, energy is a crucial aspect of your daily operations. However, reducing the cost of this essential resource and your overhead cost of power can be challenging.
With solar energy, your business becomes self-sufficient in producing electricity, which reduces its dependence on traditional energy sources and the commercial power grid. Depending on your solar panel system size and energy consumption, even partial self-sufficiency can lead to substantial savings on your electricity bills.
Not only does switching to solar power save you money in the long term, but it also offers financial security by protecting against rising energy costs. By producing your own energy, you’re immune to the billing spikes and inflation that come with relying on the commercial power grid. Plus, you have peace of mind knowing you’re price-protected for the long-term.
Solar Energy’s Long-Term Sustainability and Longevity
Because of fluctuations in supply and demand, businesses that draw electricity from the power grid are subject to its current market rates. As a result, you’re not protected from future costs because those depend on unpredictable factors like resource availability or governmental regulation.
A growing number of futurists believe that over the next few decades, electricity generated by fossil fuels won’t be as economically viable and will therefore be less used. That means consumers will pay more for fossil fuel generation since those costs will be passed on.
As the world moves away from fossil fuels and traditional power sources, like hydro and nuclear, become limited, the sun has become a powerful renewable energy source. By installing a solar panel system, you’re not only lowering your monthly electricity expenses but also safeguarding your business against future cost increases.
Gain Energy Independence with Solar Power
One of the chief benefits of solar energy is that it can reduce your dependence on commercial power sources. By investing in a self-sustaining solar system, you can reduce your dependence on the commercial power grid and secure a reliable source of electricity.
Solar panels, with their lack of moving parts, offer reliable, continuous energy production. The photovoltaic process converts the sun’s rays into alternating current electricity to independently power your business, so you have electricity no matter what happens to the utility company.
Plus, pairing your solar panel system with battery storage can ensure your business remains operational no matter what. Batteries store energy for the times you need it most, like during peak demand or power outages.
Solar Tax Benefits
The biggest benefit of converting to solar electric power is the tax breaks you can take advantage of. From local to federal levels, governments have incentivized home and business owners to make the switch to renewable, clean, and efficient solar energy with valuable tax credits and financial assistance programs.
These are the primary tax benefits available when your business makes the switch to solar power:
- Federal Investment Tax Credit (ITC): The Investment Tax Credit (ITC) is a tax credit from the federal government that provides a 30% rebate of the total cost of your solar panel system installation, including labor and installation costs. For example, if you installed a solar panel system that costs $20,000 and you owe $8,000 in taxes, your available tax liability could be reduced from $8,000 to $2,000 by applying your $6,000 ($20,000 x .30) installation tax credit.
- Accelerated Depreciation: As a business owner, you can claim a tax deduction for the accelerated depreciation of your solar energy equipment through a federal government program called the Modified Accelerated Cost-Recovery System (MACRS). The MARCS initiative allows you to write off your entire system in the first year, rather than spreading out deductions over the panels’ lifetime, which improves your cash flow and financing options.
- Solar Renewable Energy Credits (SRECs): These Solar Renewable Energy Credits allow you to recover equipment installation costs by using your system’s energy production to offset them. Each SREC represents 1,000 kilowatt-hours of electricity generated by solar equipment. Government frameworks also require electric companies to honor every SREC produced by their customers’ solar panels.
These tax benefits aren’t limited to any specific type or size of solar panel system, which makes it easy for any business to switch to solar energy and enjoy the rewards.
Invest in a Brighter Future with Solar Panels
Investing in a solar panel system can be a smart choice for your business, with numerous benefits that can enhance your bottom line. From financial stability through steady returns and reduced energy costs, to the ability to lock in low energy rates against rising expenses, the advantages of switching to solar power are substantial.
To learn more about how a solar panel system can benefit your business or if you’re ready to change the way you power your business, contact us today for a free customized quote.
Please Like and Repost if you found this helpful.
Subscribe to our blog at beacontron.com/blog for more information.
Beacontron is a Global Leader in Solar Energy Products, Services, and Financing.