As a business owner, have you considered going solar yet? Many small and big companies alike have made the transition to solar energy. You can too, regardless of the size and type of your business. If you are considering installing solar panels at some point in the future know that at the moment incentives are the strongest they have ever been and prices have dropped to new lows. Many resourceful businesses that have already gone solar are today reaping the many benefits of their smart and timely decision. Commercial solar power is not only good for the environment but can also be strategic financial decision and greatly benefit your business.
If you are still not sure about using solar power to run your commercial business, here are some compelling reasons that may convince you to make the move.
The Government Wants You To Tap Into Solar Energy
Federal and state governments are offering impressive financial incentives so that companies can make outright purchase of a solar power system easily. You can enjoy a no-cap tax credit on the cost of the system. Also, many state and local utilities have their own rebate system designed to reduce the overall cost of installing a solar power system. Most states also offers a net metering policy in which you pay only for the net electricity used. If there is excess electricity generated, you can bank them and receive 100 per cent credit calculated at the retail electricity price.
Power Purchase Agreement
If you are hesitant or unable to make large upfront cash payment for a solar power system, you can easily lease solar panels for a period of 15 to 20 years. As you do not own the system, you will not be eligible for federal or state financial incentives. However, you can still save money by paying a fixed rate for the use of the solar power system and enjoy other benefits such as access to cheaper, clean and stable power.
The federal government is relentlessly encouraging businesses to turn to solar energy. The PPA or the Power Purchase Agreement Model is a case in point. Under this arrangement, the solar energy provider will install the system on your commercial premises by securing funding for your business. The electricity generated from the installation is sold to you at a fixed price for a specific time period. Your benefit – you will get cheaper energy for a fixed rate without having to worry about the next price hike. The solar energy provider will also monitor and maintain the system. The contractual term for such PPA model is generally for 5 to 25 years.
Reduce The Operating Costs Of Your Business Establishment
You can reduce the operating expenses of your commercial facility dramatically reduce by installing solar energy system. According to a report released by a laboratory in California, sustainable green buildings can lower cost of operations and maintenance of commercial buildings by an average of $50 to $70 per square feet (Source: Lawrence Berkeley Lab).
Protects You From Rising Utility Rates
Installation of solar energy panels can act as a hedge against continuously rising utility rates and insulate your business from the volatile energy market. Your electricity bills won’t be affected by seasonal swings during summer and winter months. By producing clean, cheap electricity, you are not only guaranteeing your company a fixed electricity rate but also ensuring that utility costs for the future can be categorized as a fixed component of your balance sheet which will allow your finance managers to plan future budgets better.
It is important to note that installing a solar power system on the roof of your commercial building is potentially a large investment. Make sure you seek the advice of a qualified and experienced consultant to understand the technical and financial considerations before you go ahead with your decision.
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