Tuesday, April 23, 2024
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The Business Case for Solar Panels: Cost Savings and Return on Investment

The Business Case for Solar Panels: Cost Savings and Return on Investment

 

Every year, information appears in various sources that the generation capacity of solar electricity is constantly increasing. According to EIA data, since the end of 2017, the production level has increased approximately 3 times and is 74 GW. The gradual increase in volumes is associated with the launch of state and local projects and the installation of commercial systems.

Many American companies have already joined the trend of switching to clean, sustainable energy. Each of them has their reasons for making such a decision. However, there are several expected benefits that every business can count on. In this article, we tried to reveal them and tell why solar systems are important for business.

 Business Case for Solar Panels

Source: EcoRelif 

 https://www.ecorelief.com.au/benefit-commercial-solar 

Increasing Funds for Company Expansion

One of the main advantages of implementing a commercial solar project is the possibility of freeing up additional funds for the development of your business. This is due to saving money on paying electricity bills. After connecting the solar systems, the buildings of your business will mainly be powered by them. Electricity volumes from local electricity suppliers are automatically reduced.

This means that you no longer have to pay large sums for utilities. The saved money can be directed to the development of various sectors of your business. Most entrepreneurs return these amounts to highly profitable areas of the company’s activities. It could be marketing or sales. By increasing the investment of the specified sectors, it is possible to significantly improve profitability.

Given the features of this method, some experts call it a solar investment funnel. After all, such actions help the company to obtain financial benefits. An additional method of using the funds released from payment for communal services is the repayment of credits and loans. The result will also be an improvement in the financial situation of the business.

Finally, investing in the improvement and expansion of commercial solar systems could be another use of funds. Increasing their number in the future will help to gain independence from the general energy system and ensure an uninterrupted supply of electricity.

Stability and Protection Against Financial Fluctuations in the Market

Solar systems are now widely available. Any company can quickly find a reliable construction supplier who will select the necessary installations and install them in compliance with all requirements. For this, it is enough to write the query “solar companies near me” in the search engine. Despite the simplicity of the process and the large number of reliable manufacturers who are ready to help at all stages, some entrepreneurs have certain doubts.

Another significant advantage that will help to dispel them is the possibility of stable development of the local commercial energy system. Solar panel investment protects against various negative phenomena in the market related to electricity. Among them, we can single out a sharp increase in electricity prices, unpredictable failures in the power supply system, emergencies at facilities that occur under the influence of natural disasters, etc.

The negative consequences of all these phenomena can be avoided if the enterprise has independent equipment capable of generating electricity from a renewable source. Solar panels will support a business’s power system in any of these situations. This is especially important for companies whose activities directly depend on electricity.

Examples of such enterprises can be data centers and organizations whose activities are aimed at ensuring the security of large volumes of data. Emergencies with a complete blackout can cause great damage to them. In this case, solar systems will become not just an additional source of electricity, but the basis of stable operation without failures.

Increase in the Value of the Enterprise

Businessmen interested in return on investment in solar systems should consider increasing the value of the enterprise. This is not the main reason to install structures, but it is important for any business. You can evaluate it in the future when for some reason you have to sell your business, as well as at the current moment.

This applies to your investors, partners, and customers. Most of them will appreciate the desire to preserve the environment and the desire to improve the business. This way you can expand your partnerships and increase your coverage. The result can be a significant growth in profit and development of the enterprise.

 Business Case for Solar Panels

Source: karit

https://karitpower.com/news/top-benefits-of-investing-in-solar-power-for-business/

Ensuring a Better Future for a Business

When considering solar panel return on investment, it is worth taking into account the long-term perspective of use. Modern manufacturers provide a guarantee for 25-30 years, which confirms the reliable functionality and durability of solar systems. During this period and possibly longer, the business will receive stable financial benefits and independence. After all, as long as the sun shines, the structures can constantly generate electricity.

This creates conditions for efficient and reliable electricity supply of a specific enterprise. Another feature is protection against future tariff rises. Thanks to the installation of solar systems, the business will receive electricity for free during the entire period of operation of the facilities.

In the conditions of a constant increase in prices for utility services, such a benefit is quite promising. The installation of solar systems will also be beneficial for entrepreneurs who rent out buildings or office space. They automatically increase the payment for their use, because they are a valuable asset and ensure an uninterrupted power supply.

Profits From Solar Investments

Sometimes it is not enough to use the solar payback calculator to estimate the return of solar systems. It is necessary to think more globally. Investments in these installations significantly reduce the operating costs of enterprises (it is about paying for electricity). It is possible to feel these changes already a few days after the installation of the structures.

Starting from this day and until the end of the operational period, the business will receive financial benefits. The payback period in most cases takes only a few years and the benefits will be available for more than 15 years. During this time, the electricity bills will constantly decrease and the amount of released funds will increase. One of the state support programs can be an additional incentive.

For example, the government provides an opportunity to accelerate the depreciation of its systems. In addition, benefits and discounts are available to buyers of solar systems. Another way to profit from investments in solar systems will be to supply the excess electricity produced to the general power system. Local suppliers can buy this surplus from companies by providing special credits.

Formation of the Status of Ecologically Clean Enterprise

In the conditions of the ever-increasing negative impact on the environment of conventional power plants, the use of clean solar energy is an important advantage. Companies that install solar systems join the fight to preserve the climate and contribute to the improvement of the microclimate in a particular region. It also helps to create a positive image and improve reputation. As a result, the brand is more trustworthy.

Conclusions

Summarizing the prepared information, we can conclude that solar systems are an extremely valuable asset for every business. To understand this, it is enough to compare current electricity costs, consumption volumes, and solar power ROI. Comparing these data, as well as taking into account the amounts of money that can be saved in the future, will help to understand the effectiveness of the structures.

Even if you fear the high cost of initial investments, remember that solar panels are designed for long-term use. The payback period is only a few years, after which the company can count on net savings and the possibility of freeing up funds for the development of its business.

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