By Rachael Cornick, Director | April 2021
Solar is a mature technology, and, in the US, solar plants are being built faster than any other electricity generating plants (e.g., natural gas, coal, wind, etc.). Even so, deciding to install a commercial solar system can feel overwhelming, so let’s start at a high level and talk about the main reasons your business would benefit from using solar.
Reason #1: Reduced Operating Costs
Every business needs energy and sometimes quite a bit of it to operate. Cutting utility costs can be very attractive to businesses, no matter what their size. Solar provides your business the opportunity to offset your electricity bills and even has the potential to completely offset the costs. This frees up capital that your business can then invest back into your business on projects or expansion. Additionally, the federal Investment Tax Credit allows for a 26% deduction of the cost of the solar system from the business’ federal taxes in the year 2021. This incentive lowers to 22% in 2023 and then drops to 10% onwards so there is an economic benefit to act soon.
Reason #2: Stable Electricity Costs
Electricity costs are constantly fluctuating, which makes budgeting for energy costs very difficult. With solar, your business is better able to forecast energy costs for years into the future. This makes budgeting much more efficient and predictable.
Reason #3: Rapid Payback
You might be worried about the large initial investment that comes with switching to solar, but what you might not be aware of is that there is a rapid payback on your investment. As soon as you install a solar system, you begin getting a return on your investment. Depending on both the size and the financing of your system, you can get a full return 5 to 10 years after the initial installation of the system. After the full payback, all financial savings produced by your solar system will go on to directly contribute to your business’ profits.
Additionally, if you don’t have the upfront capital for a solar system investment, there are Power Purchase Agreements and Lease financing options that allow you to receive reduced electricity costs with no upfront cost.
Reason #4: Increased Property Value
In addition to cutting utility costs, solar can increase the property value of your building. Installing solar does not increase your property taxes and can, in fact, further raise the value of the property. Studies have found that installing solar increases both residential and commercial property values. Also, in Texas and many other states, the property tax impact from adding a solar energy system is exempt by law.
Reason #5: Low Maintenance
While solar systems do require cleaning to operate at maximum potential in geographies where rain is less, they are low maintenance energy production systems that don’t require day-to-day visits. This is because they are durable due to limited moving parts, which eliminates the need for constant maintenance. Additionally, they can withstand all different kinds of weather conditions while continuously producing energy throughout. On top of all of that, product warranties that accompany solar systems are up to 25 years.
Reason #6: Reduced Carbon Footprint
Solar energy comes from a renewable source and therefore is an inexhaustible resource for your business to take advantage of. There are no harmful emissions produced in the production of solar energy. When you switch from fossil fuel-generated electricity to solar energy, your business's carbon footprint, or the carbon emissions that your business produces, will be greatly reduced. In addition, there have been trends in environmental sustainability weighing in as part of the decision criteria that consumers have. Switching to solar is a very visible testament to your business's commitment to environmental responsibility which will appeal to these eco-minded consumers. Choosing solar benefits your business and its reputation while contributing to a growing culture of sustainability.
At SHINE Partners, we are here to support companies ready to transition to solar energy. Our goal is to help businesses lower energy costs and build their reputations as strong community partners. We can help reduce the cost of your operations and make your company more self-sufficient. Your local community reaps benefits, too, through your business’s improved profitability and resiliency. SHINE is large enough to successfully finance, manage, build, and operate a multi-technology renewable project, yet small enough to be flexible, responsive, and able to customize the best energy product to meet your business’s needs. For more information, visit our website at https://shine.partners/.
