You may have seen the figure that more than 100 companies in the Fortune 500 have moved to using solar power. You might not have realized though that it also provides a great money saving option for small and medium-sized businesses. You do not have to be an Apple or a Walmart to take advantage of the cost savings.
A six-kilowatt system costs only about $20,000 to install. It provides 98 percent of the electricity need for a home business. A 30-kilowatt system costs about $75,000. It provides the majority of the energy needed for a small to medium business. That may sound like a lot of money for an initial investment for a small business but consider the monthly costs of the average commercial property owner for traditional electricity – $1,950. Simple math shows you that amounts to an annual cost of $23,400. That means your capital investment would pay for itself in a little more than three years.
Six Ways You Save Money
Besides the basic math of the capital investment, you can save money in six different ways:
- monthly savings on energy costs,
- free energy over the long term,
- tax credit incentives,
- reduced maintenance costs,
- attracts new customers,
- provides a new stream of income.
Monthly Savings On Energy Costs
Installing solar results in an instant reduction or elimination of your monthly utility costs. Depending on the size of the installation, you may not need to pay the electric company again. According to EnergySage market data, on the average, US commercial property owners reduce their energy costs by 75 percent after installing a solar system.
Free Energy Over the Long Term
Depending on the system size, your business can pay for its solar system in three to five years. Few major capital investments pay for themselves that quickly. The real benefit is free energy. Once you pay off your system, all the energy it produces is free for you. Since most systems last 25 to 35 years before requiring update or re-installation, that translates to 25 to 35 years of free electricity for your commercial operation.
Tax Credit Incentives
Solar systems also provide other fiscal incentives. Many states provide tax credits, such as accelerated depreciation. This lets the businesses deduct 85 percent of the initial investment in the first year.
Reduced Maintenance Costs
Many manufacturers offer 25-year warranties on their panels. They can do that because solar systems provide a hardy source of energy production that requires little maintenance. The systems use static, rack-mounted installations with no moving parts which reduce wear and tear.
Attracts New Customers
Switching to renewable energy can attract new customers. Many individuals now actively seek out companies that exhibit environmental responsibility. You do not have to own a green business to use green technology.
Provides A New Stream Of Income
If your business creates more energy than you use, you can sell it to the local utility company in many states. You can also sell it to another business through a Power Purchase Agreement (PPA). In a PPA, you agree to sell the energy for a specific, set rate for an extended term.
Get started today with a commercial solar installation that can save your company money immediately and over the long-term. As the popularity of renewable energy grows, these six money-saving options will only be a drop in the bucket.