Businesses must carefully balance their costs to remain profitable, and utility costs can be among the most difficult ones to manage. Energy costs account for a considerable portion of any company’s expenses, and they are on the rise.
Cutting these costs can make your business more profitable, freeing up opportunities to invest and grow. A commercial solar energy system is one of the best ways to reduce costs, and it’s an investment that your business can make today.
Energy Costs Still on the Rise
Electricity prices are rising across the country, with the US Energy Information Administration predicting a 5% increase in commercial electricity rates by the end of 2022. That’s the average increase across the country, with New Jersey and other states along the East Coast already having higher-than-average rates and expecting to see larger increases. Businesses in these regions can achieve even greater savings by investing in solar energy systems.
A commercial solar energy system can reduce or even eliminate the energy costs incurred by your business. The impact on your bottom line throughout the system’s twenty- to thirty-year expected lifespan could be substantial and provide a fast ROI in the short term.
Investing in Solar Energy Systems to Reduce Utility Costs
Investing in a solar energy system for your business could be just what you need to mitigate your growing energy costs. These systems are highly versatile and available with a wide range of options for businesses.
The size and configuration of your solar energy system can be carefully designed to meet your needs. If you think that your business location isn’t optimal, you might be surprised by just how many regions already benefit from solar power.
Investing in commercial solar energy systems today can help businesses reduce energy costs for years to come. However, not every business has the cash on hand to make such a purchase outright. Fortunately, a wide range of funding options and incentives can bring this investment within your reach.
Your business can seek out conventional loans to purchase your solar energy system. With incentives including the newly improved federal income tax credit and accelerated depreciation, taking out a loan for a solar energy system can be an incredibly prudent financial decision.
Businesses can also take advantage of alternative financing options to benefit from reduced energy costs without any money down or incurring any debt. With options like operating leases and power purchase agreements, your business can implement your solar energy system on the terms that you choose.
A power purchase agreement, in particular, provides a discounted electricity rate without upfront costs or hassles of any kind. A third-party investor will own, operate, and maintain a solar energy system installed on your rooftop, selling your business the heavily discounted electricity over a fifteen- to twenty-five-year term.
Regardless of the unique needs of your business, there’s a solution that can make investing in commercial solar energy a reality.
Net Metering Provides Even Greater Savings
When business owners first start considering solar energy systems, a simple question often comes to mind: what about electricity at night? Solar panels can only generate electricity when sunlight is available, which is why power companies provide an incentive called net metering that solves this problem.
Your solar energy system can generate electricity beyond your needs throughout the day. That electricity is fed to the grid, and the power company applies a credit to your account. This credit offsets the cost of power that your business draws from the grid when your system isn’t meeting your demand.
This simple solution enables businesses to enjoy the full benefits of their solar energy systems to reduce their energy costs as much as possible. In some cases, net metering can make it possible to completely eliminate electricity costs.
Net metering is an agreement between your business and the power company that provides your electricity. Most states have net metering readily available, including New Jersey. However, you should discuss these benefits and other incentives with the experts during the planning of your solar energy system.
Reducing Your Utility Costs Could Be Easier Than You Think
Your business can take advantage of solar energy systems to transform your rooftop into a source of continuous energy savings with help from Geoscape Solar. It has a track record of providing top-notch financing, design, and installation for businesses, so you can get the most out of your solar energy system.
Geoscape will work closely with your business from start to finish to ensure that you receive the full benefits of the new solar energy system, reducing your utility costs and helping your business thrive.
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!