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As any business owner can tell you, one of the highest overhead costs companies face today is the cost of electricity. Electricity prices are notoriously unstable and fluctuating prices can adversely affect your business’ bottom line, which is why many business owners are turning to commercial solar power. Much like residential solar panels, solar panels for commercial applications can help lower the cost of electricity for your business and make your power more reliable. It can also increase your bottom line and help you attract customers who prioritize sustainable, eco-friendly businesses over businesses that use traditional energy sources. With the price of solar at its lowest in years and electricity costs on the rise, there has never been a better time to invest in solar power for your commercial building.
Why Go Solar?
Lowered power costs
Electricity prices are increasing every year and are notoriously difficult to predict. By going solar, you can lock in energy costs at a consistent rate and stabilize your utility bills. Once your commercial solar system has paid for itself, you are producing free power, which means you can lower the cost of the remaining power you buy from the utility company.
Return on investment
Commercial solar prices have dropped 58% since 2012, but the federal tax credit for solar power is set to decrease each year beginning in 2020, so if you plan to take your business solar, you should do it now. If you invest in commercial solar power today, you can deduct 30% of the total cost of installing the system from your federal income taxes. That means, for a $100,000 commercial solar system, you could receive a $30,000 tax credit. Unfortunately, the federal investment tax credit rate for commercial solar energy systems is projected to drop to 26% in 2020, 22% in 2021 and 10% in 2022. In the meantime, electricity prices continue to increase year after year.
Top 10 U.S. Companies that Use Solar Power
Solar power has emerged as a cost-effective alternative energy solution for businesses across the United States and many of the country’s top companies have made the switch to solar to cut their energy costs and increase their bottom line. In fact, more than 100 of the Fortune 500 companies have seen the benefits of going solar. The following are the top 10 companies in the U.S. that have converted to solar power:
- General Growth Properties (real estate investment trust)
- Prologis (real estate investment trust)
Increased bottom line
By saving on utility bills, you can directly impact your bottom line. The average company spends close to $2,000 every month on electricity from the power company. Depending on the size of your business and the commercial solar equipment you purchase, you could potentially save hundreds of thousands of dollars in electricity costs over the life of your solar system, which goes directly towards your bottom line.
By freeing your business from a dependence on utility energy providers, you can insulate your company facility from the threat of power loss due to storms and from the consequences of hackers targeting the utility company.
Not only is going solar a smart financial move for your business, it is also an eco-friendly one. Going solar can show your customers that you care about the environment and are committed to reducing your company’s carbon footprint. Research shows that the amount of solar installed by U.S. companies can offset up to 1.1 million metric tons of carbon dioxide emissions each year. Depending on your business, your solar power system could potentially offset your carbon footprint 100%, making your company carbon neutral. For potential customers comparing your company to others, this could be the deciding factor in choosing to bring their business to you instead of someone else.
Growing your business
Taking your business solar sends a powerful message to current and future customers that you are an environmentally friendly company. Today’s consumers are becoming increasingly concerned about the adverse impact human activity has on the environment and tend to prioritize brands that make eco-friendly decisions and appear to be socially responsible. They are even willing to pay more for goods from sustainable companies. According to a 2014 global survey, 55% of consumers are willing to pay higher prices for goods and services from companies with environmentally friendly business practices.
Steps for Implementing Solar Power for Your Business
Solar is a clean, green source of energy and a cost-effective energy alternative for business owners in the United States. If you are thinking about making the switch to solar power, follow these steps in order to accurately assess the energy demands of your business and find the solar energy solution that best suits your company:
- Consider whether solar energy is a good fit for your business.
- Collect your company’s recent energy usage data.
- Find a reliable commercial solar energy specialist in your area.
- Ensure that the solar system is installed by a licensed professional.
Make the Switch to Solar
Commercial electricity costs are high right now and they are only going to get higher. That’s why many businesses in the United States have made the decision to convert to solar power to reduce their operational costs. If your business consumes electricity, installing commercial solar panels can help you reduce your energy costs and allow you to reinvest the savings in your business. It can also prove to your customers that your company cares about the environment and is committed to sustainability. If you are considering switching your business to solar power, it is a good idea to schedule a consultation with an experienced solar energy provider in order to get reliable information about the cost of solar and how installing commercial solar panels can benefit your business. This will be based on several factors, including how much electricity your business consumes and what solar grants and tax credits you may qualify for by installing solar panels for your business.