How Going Solar Can Make Your Business More Profitable

going-solar-can-make-business-more-profitable

Businesses often go solar for the same reason that homeowners do. Whether you’re balancing a family budget or a company ledger, the rising cost of grid electricity can be a substantial drain on your bottom line.

With photovoltaic (PV) panels installed, however, you don’t need to buy as much expensive power from the utility grid. You can create your own electricity on site, using clean and free sunshine.

This allows your company to reduce its operating costs. And with lower business expenses, you’re able to keep a much larger portion of revenues as profit.

In other words, going solar can dramatically improve your bottom line.

However, the benefits of commercial solar power don’t stop there.

Going Solar Makes You More Competitive—Today and Tomorrow

Better still, those savings only grow with time.

By installing solar panels today, you enjoy immediate utility bill savings—and thus, immediately higher profits.

Going solar makes your business competitive

This is because utility rates keep trending upwards—even with oil prices at historic lows and natural gas capacity at an all-time high.

By contrast, sunshine remains the same price forever. It is as free today as it will be 5, 10, or 25 years from now. While some may struggle to keep up with rising grid prices, you’re able to tap into an abundant energy source that helps shield you from future rate increases.

This can be a powerful competitive advantage—especially if you operate in an industry with narrow profit margins.

Making Commercial Solar Work for Your Business

Whether you are a homeowner or business manager, going solar is a no-brainer. You benefit from immediate utility bill savings that only grow with time. But as a commercial solar customer, you often receive more from your green investment than residential customers do.

And here’s why.

Solar power can offset your electricity bill during expensive daytime business hours

Most companies operate during daylight hours, with computers, lights, and HVAC systems running at full blast. And these daytime business hours are precisely when:

  • Energy consumption is highest.
  • Utility rates are at their peak.
  • Solar PV panels perform best.

Better still, those savings only grow with time.

As a result, installing panels on your commercial property can offset a much larger portion of monthly electricity bills than if you installed those same panels on your home.

However, this isn’t the only difference between commercial and residential solar.

Compared to homeowners, businesses often have to invest in much larger PV systems to cover their electricity requirements. And this typically means paying more money out-of-pocket to go solar.

But not always.

Financing Your Commercial Solar Investment

If you have the funds, financing your PV system with cash is the best option. This approach makes solar an investment—one that pays for itself in the form of higher savings and profits.

Moreover, there are numerous incentives designed to make going solar even more affordable than it already is. In addition to the federal solar tax credit, you can also take advantage of incentives at the state and local level.

With net metering, for example, you can sell excess solar electricity to your utility provider in exchange for credits. It’s also possible to generate revenue with state renewable energy credits (SRECs). Incentives like Connecticut’s ZREC program allow you to convert sunshine into cash.

But what if you don’t have the disposable income—even with the help of federal and state incentives?

No problem. There are 3 additional ways to affordably finance your solar investment:

3 ways to finance your commercial solar system

1.) Commercial Solar Loan

Commercial solar loans provide you with upfront cash to pay for a new PV installation. And you use your company’s monthly utility bill savings to pay down the loan until you have 100% equity in your system.

2.) Commercial Solar Lease

With a commercial solar lease, you receive a new installation for free. The upfront cost is $0, and you only pay for the low-cost solar electricity generated from your rented panels.

3.) PACE (Property Assessed Clean Energy)

PACE financing, sponsored by state and local governments, offers the same benefits as a solar loan. The main difference is that repayments are made through annual property taxes instead of from corporate earnings. Programs like Maryland’s CPACE are ideal if you don’t have the credit rating required for traditional solar loans or leases and you want to finance your installation without incurring any out-of-pocket expenses.

No matter which financing approach you use, going solar can help you save money and boost the profitability of your business.

However, there are some additional benefits of commercial solar power. In the next installment, we’ll look at how installing PV panels can enhance your corporate social responsibility efforts.

In the meantime, schedule a free energy evaluation with us today to learn more about commercial solar savings and incentives.