Solar panels are rapidly rising in popularity lately, especially in Colorado Springs. Yet one thing advocates never seem to cover well is if solar panels are good for businesses. Enthusiasts can explain how solar energy can power an entire house or how the average consumer can cover the cost of installation, but what about commercial buildings? Is solar worth it for a business in Colorado? The truth is that there are many benefits to having commercial solar panels. Here are some of them to take to the next board meeting.
Ultimately, the decision on solar panels is financial. Every good business must consider the financial gains and losses of any big move. Here’s what to consider:
- Utility Bills: The most important financial benefit is the savings on the electricity bill. As many companies know, electricity price volatility and inflation can be a huge liability. Solar energy capitalizes on this, reducing insider energy costs while power companies’ pricing continues to climb. According to data, while the average commercial property owner pays $1950 per month before solar installation, the cost is reduced by 75% to only $500 per month on average. This consistency in energy allows business to reduce the liability from electricity.
- Payback Period: It takes only an estimated 3-7 years to pay the cost of installation back while the system lasts 25-35 years, with a return on investment starting from day one.
- Net Metering: Net metering, or the process of selling energy back to power companies, is also an option for commercial buildings. This extra amount helps offset the initial cost of the system, and can be used for profit further down the road.
- Maintenance Cost: Maintenance on solar panels is rarely needed. Because of this, the initial cost of the panels and installation is the primary financial loss.
- Size of Solar System: The financial gains are not just for big businesses. Solar panel systems come in various wattages and sizes that a smaller company could benefit from as well.
- Solar Incentives
One reason both big and small businesses can afford solar panels is because of the incentives offered to offset the cost of the system.
- Federal Investment Tax Credit—This federal incentive from a bill passed in 2016 credits up to 30% of the cost.
- Tax and Cuts Job Act—This incentive allows accelerated depreciation on the cost of the solar panel system.
- Performance-Based Incentives—These incentives, such as solar renewal energy certificates, allow the company to receive payment for the energy being produced.
- Multiple financing options—Lenders often offer good rates for solar installation.
- Attract More Customers
Solar panels can also be a smart business move because of the attention they create. Some customers appreciate businesses that are environmentally conscious, choosing your business over others because of the solar panels. Also, due to the increasing focus on environmental awareness, especially in the commercial setting, the use of solar panels attracts media attention. This can be a technique for marketing and advertising.
- Helps the local economy
Finally, solar panel installation helps the local economy because of the investment. Local lenders benefit from the investment of solar, and your business gains traction because of the awareness created. Overall, the greater demand for solar installation increases the use of local workers and solar businesses.
If you’re looking to invest in a cost-effective project with short term return, contact CRJ Contractors for an estimate for your business. We are a commercial solar panel company located in Colorado Springs, and we can help answer all your questions about solar energy for your business. Contact us today to schedule a free energy audit for your place of work. We can determine what size of solar system you need, and how much it can save you overtime. We look forward to working with you!