Climate change is a concern not just for governments but for everyone. The report by the Intergovernmental Panel on Climate Change (IPCC) last year revealed some big findings that are significant. It also required a joint effort to mitigate the impact of climate change.
It is more than necessary for businesses to adapt accordingly. One way for them to do so is starting a commercial solar panel installation. Solar energy is the cheapest and cleanest source of energy. It is a much better and more effective option than fossil fuels.
However, not many businesses are aware of the benefits that they can enjoy from installing solar panels. This article will cover the benefits you can get from installing a solar system on commercial buildings.
Reasons Businesses Should Install Commercial Solar Power Systems
Switching to solar isn’t easy for businesses and can not be done overnight. Businesses need to assess their current energy demands and supply and how they will change in the future.
Since it is a long-term investment, you should consider the pros and cons and then make the right decision. Here are a few reasons businesses should install commercial solar power systems.
Longevity and Sustainability
Not many people have an idea that commercial solar power is a commodity. The price of this commodity is decided on the factors of demand and supply. Using power from the grid means you’re subject to market forces and user rates. So, you’re unprotected from future costs since they’re unpredictable.
As governments tend to encourage power generation through renewable sources, the dependence on fossil fuels will decrease. Moreover, the governments will also increase the regulations on coal and gas-fired electrical generation stations.
So, it will increase the cost of power generation that the suppliers will pass on to the consumers. Similarly, hydroelectricity is also a renewable source of energy, but it has a limited output capacity. Other sources, such as nuclear plants, are also available for power generation.
However, there is a concern about wastage and accidents at nuclear plants. All these factors make solar energy one of the best options. It has higher longevity and sustainability compared to other power electrical generation options.
Solar Tax Benefits
One of the biggest incentives for switching to solar energy is the tax benefits businesses can get. Federal, state, and local governments encourage businesses to shift to renewable energy. Therefore, they offer a variety of tax incentives for businesses. Here are a few of them:
- Solar Renewable Energy Credits (SRECs): The SRECs help you use your system’s energy production to recollect equipment installation expenses. One SREC is the same as 1,000 kWh per the government frameworks’ calculations. The government also ensures that the electric companies pay for every SREC your solar equipment produces.
- Investment Tax Credit (ITC): The ITC is a tax benefit by the US federal government that gives you a 26% rebate on the cost of your commercial solar power system. For example, you can get a tax credit of $2,600 for your investment of $10,000. While there is no cap on this tax credit, it will decrease to 22% this year and 10% after that.
- Modified Accelerated Cost-Recovery System (MACRS): This program is another initiative by the federal government to encourage businesses to go solar. It will allow you to save money on the accelerated depreciation of your solar energy equipment. The best thing about this plan is that it allows you to write off the depreciation tax deductions for your solar panel system in the initial year. As a result, it can enhance your cash flow and your ability to finance commercial solar installations.
Business owners need to note that there is no specific kind or size of solar panel system to avail these tax benefits. It is because the government wants to encourage businesses to move towards solar energy.
Therefore, you can enroll in these government programs and enjoy the incentives by installing any kind of solar system you want for your business.
Lower Overhead Costs
Every business owner aims to reduce overhead expenses such as wages and operational materials. One of the significant expenses they can reduce with solar power is electric energy costs.
Different things can add up and increase the electric power costs for your business, such as electric heating and cooling systems. So, switching to solar power is the best way to reduce your energy bill. It will help businesses decrease their electrical bills significantly.
However, there are a few things that you need to consider before switching to solar power. First, you need to decide whether you want to decrease the commercial power grid’s dependency or replace it completely.
Reducing the dependency on the grid means that you’ll have to have to go solar completely with a generator as a backup. Otherwise, you might have to stay on the grid during the night hours or for additional support. Nevertheless, converting solar energy can help you reduce your electricity bills significantly.
Switching to solar power also saves you from the vulnerability that persists due to rising fossil fuel prices and inflation. Moreover, you’ll also face issues if there is a seasonal or supply shortage that can increase the price. This is something highly important for businesses today as inflation is increasing rapidly.
High Reliability with Low Maintenance
Embracing new technologies or gadgets can be challenging for businesses, particularly when it comes to electrical systems. Any issues with the system can severely impact their overall operations. But that is not the case with a solar power system since it is fast and reliable.
The solar cells are encased in protective glass and non-corrosive aluminum. Therefore, they can withstand exposure to various things, ensuring they don’t need repair. It also means that businesses won’t have to worry about the maintenance of their solar panels.
The minimal service and maintenance requirements make solar panels an optimal choice for business owners. Also, a long-time warranty and a low commercial solar panel maintenance cost make it an ideal investment.
We already mentioned how installing solar panels can help you reduce overhead expenses. But the story doesn’t stop there since you can enjoy independence from commercial electrical suppliers. It is another great benefit that you can enjoy by installing solar panels.
You can have the assurance of getting a consistent electricity supply even if there is something wrong with the commercial grid. Commercial power failure can happen at any time without any notice. It can be a serious problem for businesses in certain industries, such as cold storage, which requires continuous electrical supply.
Some areas in the US have frequent power cuts due to weather conditions. All these things make it necessary to decrease your dependence on the grid by becoming self-reliant on your solar panel system.
The best thing about solar panels is that they don’t have moving parts like other power-generating equipment. With proper design and installation, solar panel systems offer complete reliability. Some panels are interconnected to turn the sun’s rays into electricity via the Photovoltaic (PV) process.
The electric current that the panel converts is the same that you get from your commercial power company. Additionally, a battery system will allow you to store extra solar energy during the day. Therefore, you’ll have power in case of fading light or during the night hours.
Better Brand Image
Lastly, consumers today are conscious about the brands they are dealing with for goods and services. They would only want to work with those who keep sustainability at their business’s forefront. And it should be visible through the company’s actions that they’re serious about the environment.
Choosing solar energy means your business is actively involved in attempts to deal with the climate crisis. It will create a good impression on every stakeholder of the business, including:
Incorporating sustainable approaches for your business can help you attract new clients. More recent generations are most likely to deal with businesses that promote sustainability.
Workers are also an integral part of the business that is becoming more eco-conscious. Candidates today can choose from loads of opportunities available in the employment market. Therefore, they’re most likely to choose businesses focusing on sustainability initiatives.
Investing in solar panels for commercial buildings shows that your business is keen to capitalize on growth opportunities. Furthermore, it shows that you are responsive to the changing market and consumer trends. All of these things are vital for ESG (environmental, social, and governance) investors.
Get Solar Power Solutions for Your Commercial Buildings with the Help of Coldwell Solar
Installing solar panels can help you cut back your business overheads significantly. Not just that, but your business will also be helping move toward a sustainable future. So, if you want to experience all these benefits for your business, get in touch with Coldwell Solar for more information about commercial solar system installations to get started today!