The size of your organisation doesn’t matter when it comes to commercial solar systems. Whether you’re running a start-up, a medium-sized business, or a Fortune 500 company, you can benefit from the many commercial solar benefits available. Their efficiency is just one reason why businesses in countless industries and levels now capitalise on this sustainable energy alternative.
As long as you use electricity in any aspect, commercial solar can offer a cleaner, cheaper substitute. If you’re still considering having a commercial solar investment, review this list of commercial solar advantages for commercial buildings and work premises from Kuga Electrical.
Benefits of Using Solar Energy for Business
1. Save energy and resources
Most companies usually operate during the daytime when the sun is at its highest, consuming energy for hours on end with demands like air conditioning and heating, lighting and security systems, powering computers and other forms of technology, as well as communal facilities, such as kitchen appliances. Solar panels will generate electricity during these daylight hours, with every kW your business generates not only a kW you will not have to pay for from a traditional energy provider, but any excess will actually be exported back to the grid, with credits available to offset your ongoing power bills. While it always depends on the enterprise’s size and power demand, solar energy can offer thousands of dollars in savings for years to come.
Some of the factors that affect the cost reduction are the location, industry, size of the facilities, and time of operations. To maximise commercial solar benefits, you should install the proper commercial solar system size to comply with your energy requirements.
2. Reduces greenhouse gasses and carbon footprint
Solar panels generate renewable energy that is clean and safe for the environment. Unlike fossil fuels, it doesn’t produce any hazardous gases or pollutants. The reduced carbon footprint then contributes to alleviating the global issue of climate change, placing so much strain on the world’s diverse populations, demonstrating active corporate social responsibility.
3. Free up cash flow for further investment
One of the essential commercial solar advantages is lowered operational costs. You can depend on it as your business relies on cleaner power both throughout the day and at night. This can easily make a difference in growing your business, as commercial solar reduces your power bills and frees up cash flow that you can reinvest into more lucrative activities, increasing the efficiency and profitability of your operations.
4. Minimal maintenance required
The upfront investments of commercial solar is a given, but this is offset by how the system requires only minimal ongoing maintenance after installation. A reliable commercial solar installation comes with extensive warranties that can last up to 10 years or more. Once your commercial solar investment is set, you can leave the system to perform as expected without the worries of regular repair schedules and such.
5. Generates return on investment
There’s a common rule of thumb in business, wherein investments are only deemed worthy if they generate a positive ROI within seven years. With commercial solar, you can achieve it much sooner than that.
For example, companies running on solar energy in Perth that use 25% of power consumption can expect their ROI in about four years. But with 50% dependence on solar power, they can achieve it within just three.
Moreover, the cost of commercial solar is decreasing by the year. The International Energy Agency announced in 2020 that solar power is the world’s cheapest electricity in all of history. They estimate that by 2050, the cost of solar energy will have dropped by about 60 cents.
In simpler terms, commercial solar is becoming more affordable and cost-efficient for companies of all sizes.
6. Increases property value
One of the most overlooked benefits of using solar energy for business is increasing property value. Your office or business premise can appreciate not only with shifts in the market, but now also with the installation of solar panels to your roof.
Commercial solar investment is not the type to depreciate any time soon. If the time comes when you seek to expand your business and sell your current location, you can rely on your solar panels to give your more leverage at requesting a higher starting price.
7. Improves public image with the green approach
Commercial solar benefits are not exclusive internal; it also boosts your company’s brand image. As you gain business innovation, you also earn a competitive advantage from recognition as an enterprise switching to renewable power sources.
Customers today are becoming more aware of the brands they support. That’s why most businesses are now publicising any efforts of being more environmentally responsible. By going solar, you can present your support for sustainability causes.
It also shows your support and consideration of your community’s eco-friendly objectives. In return, you can gain increased local support when people recognise your stance against global issues, such as climate change. Local support can then propagate into loyal customers, which is another way to take advantage of commercial solar advantages.
8. Gains from government incentives and solar rebates
You not only cut costs with solar power, but you also gain from incentives and rebates. Going solar in Australia makes you eligible for small-scale technology certificates (STCs) and large-scale generation certificates (LGCs). You can redeem their dollar value in any market regulated by the government.
9. Generates income from feed-in tariffs
Feed-in tariffs started as a standard for residential solar systems, given how businesses consume most power during the daytime. But now, you can send any excess power generation to your retailer, for which they will pay the fuel you feed to the grid. Requirements and rates vary on location.
Aside from the expenses that you save, commercial solar advantages also grant you extra profit. What’s excessive for you can, in turn, contribute to your local community as well through the feed-in tariff scheme.
10. Prompts tax benefits
If you’re eligible to claim depreciation, commercial solar also prompts a 20-year tax benefit. For example, smaller businesses under $2 million have an accelerated depreciation that applies for purchases under $20,000. You can now claim the quick asset write-off immediately rather than over several years. Such commercial solar advantages benefit both the business owners and the government.
Are solar panels worth it for commercial buildings?
Given the information provided above, hopefully we have answered the questions of whether solar panels are worth it for commercial buildings.
Here’s a rough breakdown of the benefits of using solar energy for business:
- It cuts your expenses and saves resources
- It helps your community and alleviates global issues
- It generates income both for you and the government
The cost-efficiency of commercial solar is one of the smartest and most environmentally friendly of your investments. If you’re considering this investment for your business, contact us at Kuga Electrical today.