In this day and age, almost every business is feeling the pinch of rising utility bills. While there are ways to help mitigate these costs––such as installing energy-efficient appliances or upgrading to LED lighting––businesses often need a more drastic solution to see actual savings. That’s where solar comes in. Solar energy has incredible ROI and helps businesses turn otherwise unused spaces on their property into savings and profits.Let’s take a closer look at how solar lowers energy costs and drives energy independence.
How Commercial Solar Energy Can Save Your Business Money
A business that installs a solar energy system can generate its own clean and renewable electricity, which reduces its reliance on the grid. Solar power also protects against future rate hikes. Here are five ways that solar energy can save your business money.
1. Protect Your Business from Rising Energy Costs
Energy costs are on the rise and show no signs of stopping, rising at an average rate of 4% each year, which inevitably means your business will have to spend more to keep the lights on as time goes by. Solar power fixes your energy costs for the long term, which saves your business money by insulating it against future price hikes. Solar energy systems are an excellent way for businesses to hedge against rising energy costs and keep their expenses under control.
2. Make Your Energy Costs Predictable
Solar energy systems provide businesses with predictable monthly costs. Installing a solar energy system is like prepaying a decade’s worth of energy bills at a fraction of the current cost. They provide a fixed price for solar power, making it easier to predict future costs. You’ll know exactly how much you’re paying for energy each month, making it easier to budget and plan for the future. By prepaying for energy now, your business can lock in a low rate and save money in the long run. This predictability is a huge advantage for companies looking to become energy independent.
3. Reduce or Eliminate Your Electric Bill
Solar energy can either reduce or eliminate your electric bill, depending on the size of your solar energy system and how much electricity your business uses. Solar for businesses can reduce your electric bill by offsetting the cost of the electricity that your company uses from the grid. The average commercial solar energy system can offset 75% of a business’s electric usage, which will significantly impact your bottom line.
4. Offset Your Future Electric Bills
In addition to offsetting your current electric usage, a solar energy system can offset future use. Even if you don’t produce all of your energy, commercial solar power can still reduce your bills through utility credit programs, like the ones in New Jersey. Solar energy provides businesses with an additional revenue stream and reduces their electric bills.
Successor Solar Incentive Program (SuSI)
The SuSI program is a follow-up to New Jersey’s SREC initiative. You can earn one credit per megawatt-hour that your solar energy system generates. The SREC-II cost is contingent on the size of the system that you have installed.
The current value is $100 for commercial systems smaller than 1 megawatt (MW) and $90 for larger 1- to 5-MW systems. Public entities can receive credits of $120 for smaller solar energy systems and $110 for larger ones. These incentives make solar power an even more attractive option for businesses looking to save money and become more energy independent.
Net metering is a solar incentive that credits solar energy system owners for generating electricity. They can sell excess solar energy back to the utility company and get a credit on their next utility bill. These credits can offset future energy costs (up to twelve months) when solar production is low, such as at night or during cloudy days. This program enables New Jersey business owners to reduce their electric bills even further and decrease their payback period.
5. Avoid Peak Pricing
Utilities charge more for power during peak times, which can add up for businesses that rely on electricity to run their operations. With a commercial solar energy system, you will use less power from the grid during peak times, lowering your overall demand charges. When your business is generating its own solar energy, you’re not relying on the grid and are not subject to peak pricing rates, which can lead to significant savings on your monthly electric bill.
Get Started with Solar Energy for Your Business
Solar for businesses is an excellent option if you’re looking to reduce your monthly utility costs and gain energy independence. You can save money on your monthly energy bill by installing a solar energy system customized to your property and power needs. By taking advantage of solar incentives, like those in New Jersey, you can offset the cost of your solar installation and make solar energy an even more attractive investment for your business.
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!