From small firms to Fortune 500 companies, businesses all over the United States are discovering commercial solar energy as a cost-effective solution to the rising price of energy. In 2021, more than 10,000 businesses in the US switched to solar energy, and that number continues to grow.
Installation of a solar energy system offers short- and long-term financial benefits and a strong return on investment while reducing your company’s carbon footprint. Utilizing the renewable energy of the sun is a sound business decision, offering several advantages for businesses of all sizes.
1. Lowered Energy Costs
For many businesses, the cost of electricity is one of the highest associated with overhead. The rising price of electricity has led business owners to explore financial energy solutions and install commercial solar energy on their property.
Companies can significantly reduce their energy bills with solar power. According to EnergySage, businesses can reduce their energy costs by 89% in some cases by utilizing solar energy. The amount that your business will save each year depends on a few variables:
- Current energy consumption. The more energy your business uses, the more money you stand to save.
- Cost of installation. There are multiple financing options to pay for your solar installation, including power-purchase agreements, leasing, and bank financing.
- Federal and state tax credits and incentives. Financial incentives at the federal, state, and local levels can offset the cost of the initial installation, leading to a faster return on investment (ROI).
2. Energy Independence
Another solar benefit for businesses is gaining independence from the local power company. With solar energy, your business will have its own dependable energy supply and will no longer be fully dependent on the power grid.
Your business will also be protected from energy price hikes. Rising energy demand has led to often volatile electricity prices. Even if just 50% of your energy is supplied by renewable sources, you will be less susceptible to the variability of the cost of traditional electricity.
3. Increased Profits
Installation of commercial solar energy systems is a long-term investment in the future and profitability of your business, and the ROI may be shorter than you think. Reducing the cost of your electrical consumption can lower your operating expenses and have a significant financial impact on your organization in the short term.
Typically, commercial solar systems pay for themselves in three to five years, leaving savings that can be re-invested in other ways to drive growth in your company. Also, the cost of solar installation has dropped 60% over the last decade, enabling a faster financial ROI.
Using renewable energy can also open up tax breaks for your organization. You can find out more about your state’s policies and incentives at the NC Clean Energy Technology Center.
4. Positive Environmental Impact
Of all the solar benefits for businesses, having a positive impact on the environment is perhaps the most important. To help address the issue of climate change, the Solar Energy Industries Association set a goal to reach 30% solar electricity generation by the year 2030. The US is currently at 4%, but even this small percentage has had an impact in reducing carbon emissions by 141 metric tons. Switching to clean renewable solar energy is a way for companies to become environmentally compliant and potentially attract eco-conscious customers seeking like-minded businesses.
Here are a few case studies of businesses that converted to solar energy and realized the maximum benefits of energy savings.
Cranford Business Park in Cranford, New Jersey, is the home to multiple businesses. The property owners wanted to reduce their overhead and increase the desirability of their space for current and future tenants. Geoscape Solar engineered a complex rooftop system of solar panels that now covers 99% of the energy usage in the business park. The owners of this now energy-efficient building benefit from the reduced cost of electricity and receive solar tax benefits. This installation alone has an environmental impact equivalent to removing over 2 million pounds of carbon and planting 16,215 trees.
The Wilshire Grand Hotel in West Orange, New Jersey, is a luxury, full-service hotel whose owners wanted to reduce their carbon footprint and market the hotel as environmentally conscious. Geoscape Solar installed a complex system of solar panels that now provides 99% of the energy usage at the hotel. Wilshire Grand highlights its commitment to the environment to the guests through room display cards and a lobby monitor. Its green-energy choices have had an enormous environmental impact, including the removal of 42 million pounds of carbon and being equal to planting 332,657 trees.
New Jersey Cardiology is a doctor-owned medical co-op whose owners wanted to reduce their reliance on utility companies and build green practices. Geoscape Solar installed a rooftop solar energy system that now covers 85% of the co-op’s energy needs. This installation’s environmental impact is equivalent to 1,348 trees being planted and 204,822 miles taken off the road.
Solar energy for business properties makes solid financial sense and drives financial growth. Companies who use the power of the sun can reap benefits in both the short and long term, including lowered energy costs, energy independence, increased profits, and positive environmental impact.
At Geoscape Solar, we help businesses utilize solar energy for profit. Your business will become energy independent, be able to decrease utility costs, and leverage available solar incentives for a quick ROI.
To discover how installing solar energy on your property will increase your business profitability, contact one of our energy specialists!