As statistics have shown over the years but particularly in the past few months, utility costs are erratic and unpredictable, making it a costly financial liability for businesses that require stability to make a profit.
Fluctuating electricity costs lead to profit loss for businesses, and many companies are looking into alternative, sustainable energy sources, such as solar, to power their businesses. Find out how to lower utility costs by installing solar energy for your business operations.
Why Energy Bills Are Rising
Many factors have influenced the recent spike in utility costs globally. For one, the Russian invasion of Ukraine has created a sustained disruption of the world energy markets, with no end in sight for the rise.
The COVID-19 pandemic encouraged the rise in utility prices, and weather-related disruptions like the February Texas freeze and Hurricane Ida also resulted in higher prices due to increased demand for electricity and limited supply.
In the US, electricity costs are notably higher in regions where electricity is generated from natural gas.
A commercial solar energy system as an energy alternative is one way to significantly reduce your rising utility costs.
How to Lower Rising Utility Costs by Going Solar
Utility bills are among the most expensive payments that small and medium-sized companies make monthly. The bigger the business, the higher the utility costs.
A solar energy system helps your business lower or even escape utility costs. For instance, the software company, Infragistics, had a goal to reduce its energy and utility costs and boost profitability with more sustainable energy options.
Geoscape Solar leveraged Infragistics’s piers, rooftops, and carports by installing solar panels on them. The solar energy system covered up to 93% of the company’s energy needs, giving it almost complete independence from the power grid.
Similarly, you can lower utility costs for your business and gain independence using solar energy in the following ways.
Evade Rising Energy Prices and Reduce Monthly Electricity Bills
The biggest benefit of installing a solar energy system for your business is that you can evade or at least drastically reduce your energy bills. With large enough solar panels, you could provide enough energy to cover all your business’s electricity needs.
That said, as long as you’re on the national power grid, it’s almost impossible for you to evade expensive electricity bills. But solar energy helps you significantly reduce your monthly utility costs (up to 75%) because you only minimally rely on the grid energy.
During peak demand periods, when utility companies charge higher prices, solar energy helps you avoid or reduce peak pricing. Your solar energy system generates energy during the day, covering your business needs during those periods.
Gain Partial or Full Energy Independence from the Grid
Despite the high costs of energy bills, businesses are still subject to poor services from the power grid and utility companies. By installing a solar energy system, you reduce how much your business relies on the energy grid annually.
Various factors determine how big your solar energy system should be, but even a small-sized solar panel will create enough energy to impact your power grid dependence.
When you have solar energy, you’re in charge of your electricity. You no longer have to deal with poor energy supply, power outages, price inflations and fluctuations, and profit loss from business downtimes.
Enjoy Solar Tax Incentives That Help Cover the Costs of Going Solar
One of the major reasons that many businesses avoid going solar is the high installation cost of purchasing a solar energy system. But the truth is that solar is a profitable long-term investment for businesses of all sizes.
The costs of installing a solar energy system have reduced significantly in the past ten years, making it more affordable and a better choice for companies looking to lower their utility costs.
A solar energy system for businesses also pays itself back in a short time through energy bill savings; the average ROI for the costs of a solar installation is between five and ten years. Businesses with solar energy systems also enjoy solar tax incentives and financing options that help cover the initial cost of a solar purchase.
The federal investment tax credit gives a 30% reduction in income tax that’s equal to the total cost of your solar energy system installation. Most states also offer up to 70% cost savings to eligible companies that have gone solar.
Choose Solar, Escape Rising Utility Costs
The US Energy Information Administration has predicted the continued growth of solar energy through 2023 due to its sustainability and many major cost-savings benefits. It provides quick ROI and eliminates your business’s dependence on the energy grid, ultimately reducing utility costs.
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!