Smart companies are exploring the benefits of solar energy for business because it provides price stability in comparison with total energy dependence on grid power generation. There is sufficient evidence that companies can cut down on utility bills and take advantage of tax incentives made available to business property owners who transitioned to renewable energy for their daily operations. This means companies will reduce expenditure, thereby generating more money that can be put into core business investments.
Companies also benefit from an improved carbon footprint, which is excellent for brand perception and correlates with positive performance indices. Prospects of this renewable source of energy are promising, and we expect more companies to convert to solar energy in the coming years.
Benefits of Solar Energy for Business
Lower electricity costs
Between 2010 and 2020, the cost of solar power fell more than 80%, despite the prices of photovoltaic (PV) panels and solar installation being impacted by supply chain issues. Any business that can afford to pay its annual utility bills can afford to install a solar energy system and enjoy the benefits of energy independence.
Consumption monitoring along with a PV installation is proven to reduce electricity costs based on peak demand charges. The resultant lower electricity cost-benefit is both immediate and progressive, ultimately making more money available for core business transactions.
Stability and consistency
Gas price fluctuations were responsible for 75% of inflation in 2021. Unfortunately, this is expected to continue. It brings into focus one of the core benefits of solar energy for businesses: price stability. If an organization invests in solar energy infrastructure, its energy expenses are locked within a predictable range.
Its solar energy supply can also create a buffer for an increase in fossil fuel prices. Ultimately, the cost of infrastructure and maintenance for solar energy is a more stable investment, as it caps energy expenses and makes the organization more profitable.
A consistent theme in these benefits of solar energy for business is how increased profit is ultimately generated from reduced utility bills, more productive solar infrastructure, and better brand positioning. Organizations benefit from tax incentives at the federal and state levels when implementing renewable energy structures. These incentives include the federal solar investment tax credit (ITC), a dollar-for-dollar tax credit of the cost of commercial or home solar installation from income taxes.
Improved carbon footprint
Organizations have discovered a relationship between their environmental impact and their brand image and are taking steps to be better positioned for customers and clients who find greater value in sustainability investments. Brands are committed to the safety and satisfaction of the environment and their clients, respectively, when they act on sustainability. Improved brand image is good for business because it helps the organization when seeking partners and hiring.
How to Enjoy the Benefits of Solar Energy for Business
Net metering enables you to enjoy the benefits of solar energy for business. This arrangement enables property owners who install solar energy systems to enjoy lower utility rates when they generate more electricity than they consume. Excess power is sent to the grid, and usage in peak periods is credited, taking into account the excess solar energy that was previously received. Since the energy being exchanged came from the freely available sun, organizations can cut down on electricity costs even further.
Each state has its own renewable energy incentives to further encourage organizations to conduct their business in an environmentally friendly manner.
Finally, investing in solar energy stocks is another viable option for harnessing the profitability that solar presents. The ITC has led to a 52% growth in solar, and demand is projected to increase. Therefore, buying stocks in the solar energy sector could be a step in the right direction.
Leveraging solar energy as soon as possible is the surest way to enjoy these benefits. Supply and demand are rising simultaneously, resulting in property owners installing solar to take advantage of the incentives that solar energy provides.
At Geoscape Solar, we help businesses turn their roofs into profit centers, helping them not only become energy independent to cut utility costs but also leverage solar incentives for faster ROI.
To see how we can help you turn your company’s roof into profitability for your business, contact one of our specialists!