Solar panel installations are expected to double by 2023, making solar energy the fastest-growing source of renewable power. Besides reducing their effect on the environment, solar energy offers multiple money-saving, reputation-boosting benefits for businesses. If you’re questioning whether now is the right time to make the switch from coal-based power to solar energy, here are several things to consider.
Financial Savings
Probably the largest benefit for businesses is the financial savings. Investing in solar energy for your company is exactly that—an investment. It will take a while—several years, most likely—but the money you save as a result of switching to solar energy will eventually pay for the cost of installation.
Even after you’ve paid off your solar panels, your operating costs will continue to be lower than they ever were before, saving your business thousands in the long run. Electrical overhead can cut heavily into business profits, but EnergySage reports a 75% reduction to the average business’ power bill after installing solar panels. Whether your business undertakes a full or partial switch to solar power, the savings will be prominent.
With no or reduced dependence on a power company, you won’t have to deal with the fluctuations of the market. Solar energy gives you control of your electrical overhead; you won’t be subject to increases in your monthly bill due to inflation and power shortages. Your power costs won’t increase unless you decide to expand your solar panel system.
Because of their lack of moving parts, solar panels require little maintenance. While they do need to be routinely inspected, this is mostly to check for dust or debris that would affect their functionality. Otherwise, solar panels are noiseless and built to withstand the elements, even snow. Their cells don’t often break down, but if they do, most trusted solar companies offer extended warranties.
Tax Benefits
Installing solar panels could make you eligible for solar energy tax credit (ITC), which can be claimed on federal income taxes. Solar panel systems installed by the end of 2020 can claim a 26% tax credit, which will drop to 22% in 2021, after which it will expire unless renewed. Depending on your location, state and local governments offer other incentives and rebates for businesses who choose solar energy.
Lower Cost of Installation
Solar panel investment has increased in recent years due to the lower cost of installation, which has fallen almost 90% since 2010. With prices expected to continue to drop through at least 2050, you may wonder why you should bother making the switch at the market’s current price.
However, with no “lowest price” in sight and coal power predicted to be unprofitable by 2040, waiting to invest in solar energy only prolongs the inevitable switch, and you lose money you could be saving by reducing your electrical overhead. Additionally, the tax benefits discussed above will continue decreasing and eventually expire.
Green Looks Good
In recent years, society has pushed for companies to be held accountable for their effect on the environment. Customers, especially those belonging to younger generations, are more likely to support companies who share their values. Investing in solar energy improves your reputation by showing you’re taking the steps toward a green-friendly future. You can even market your switch as a selling point, so customers know when they partner with your company, they’re partnering with people who care about the environment.
At Landwehr Construction, we believe renewable energy is the future. As members of the Minnesota Solar Energy Industries Association, we perform multiple necessary services in the pre-installation phase of solar panels, including site clearing, grubbing, fencing, and more. Visit our website for more information.