Switch Your Business to Solar Power and Save
The decision to switch your business to solar power and save on operational costs is one of the most financially sound moves a company can make in today's energy landscape.
Solar power is more popular than ever. According to the US Energy Information Agency, utilities added a record amount of solar energy generation capacity in 2016.
The amount of solar capacity installed on the roofs of homes and businesses is 35% higher than it was a year ago. This trend includes small businesses, for which there are compelling reasons to make the switch to solar.
The key benefits of adopting solar energy go beyond lower electricity bills — they include energy independence, improved carbon footprint, protection against power outages, and a stronger position with environmentally conscious consumers who increasingly choose to support businesses with genuine environmental responsibility.
Both small businesses and large corporations across the solar energy sector are discovering that commercial solar systems deliver returns that far outpace traditional energy sources.
Related article: TerraSol Energies Inc. Solidifies Position as #1 Industrial and Commercial Solar Installer in the PECO Region
Why Switch Your Business to Solar Power and Save on Electricity Bills
The financial case for commercial solar is even stronger when you factor in the full picture of reduced energy costs. Businesses that own electricity generation through a solar panel system on their business property are no longer exposed to the volatility of the commercial power grid and natural gas pricing that drives traditional power sources.
Every kilowatt-hour your commercial solar panels produce is a kilowatt-hour you don't pay for — reducing both monthly electricity bills and monthly utility bills simultaneously. Over the 25+ years of useful life of a solar array, cumulative energy bill savings run well into the tens of thousands for most businesses.
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Lower Electricity Bills
The upfront costs of a photovoltaic solar energy system may seem high for a small business, but the savings you will see on your energy costs make it money well spent. The average firm reduces its electricity costs by 75%. With these savings, commercial solar installations usually pay for themselves within three to seven years.
Switching to solar also makes it easier to forecast your energy expenses. Solar energy systems have low maintenance requirements, and they provide free electricity to their owners for over 25 years. When you get your electricity from solar, there is no reason to worry about your utility increasing its rates.
For businesses that experience peak demand charges — the premium utility companies add during periods of high energy consumption — a well-designed commercial solar system paired with battery storage can significantly reduce or eliminate these spikes.
Battery storage allows your solar electric power to be stored and deployed during peak demand periods, cutting surcharges that often account for a large portion of energy bills for commercial operations.
Related article: A Strategic Guide to Residential Energy Storage to Save More
The Solar Tax Credit
The federal government recently extended the Solar Investment Tax Credit. Businesses can take full advantage of this tax break if they install solar power systems before the end of 2019.
When you claim this tax credit, you can deduct up to 30% of the value of your solar installation from your federal income taxes. This tax credit is only a one-time deal, but you can think of it as 30% discount on what would be a worthwhile investment even without it.
Beyond the federal investment tax credit, businesses have access to a range of additional solar tax benefits and solar incentives that further reduce installation costs and tax liability.
Many states also offer solar renewable energy credits (SRECs), utility rebates, and property assessed clean energy (PACE) financing programs that make commercial solar panels even more accessible.
Solar loans, solar lease agreements, and power purchase agreement options further reduce the barrier to entry — meaning businesses can often switch to solar power with little to no upfront cost while still realizing immediate savings on electricity bills.
A qualified solar installation partner can walk you through which tax incentives and solar incentives apply to your specific situation.
Related article: PECO Residential Solar Power Rebate: How TerraSol Energies Makes Going Solar Easy
Ready to see how much your business could save? Stop overpaying for electricity and start taking advantage of the Solar Investment Tax Credit. The experts at TerraSol Energies can evaluate your facility and calculate your exact ROI. Request a custom solar proposal.
Social Responsibility and Public Relations
When you put solar panels on top of your building, you are making a visible statement about your company’s values. Your investment in solar energy shows the public that you care about fighting air pollution and reducing your carbon footprint.
With an environmentally responsible public image, more people will be interested in your products and services. According to a Nielsen survey, 50% of consumers are willing to spend more money at businesses that are seen as socially responsible.
Another Nielsen survey found that 67% of employees prefer to work for socially responsible businesses. The public image boost that you get from switching to solar will help you attract talented and productive workers.
The environmental benefits of commercial solar extend well beyond reputation. Every kilowatt-hour of solar electric power your solar panel systems generate displaces fossil fuel generation — reducing greenhouse gas emissions, carbon emissions, and dependence on fossil fuels and natural gas.
Businesses that demonstrate measurable progress in cutting carbon footprint and energy consumption are increasingly favored by environmentally conscious consumers, investors, and partners who prioritize environmental responsibility as a core value.
Related article: Going Green
Supporting Growth in Your Community
The solar power industry is growing and creating jobs to keep up with consumer demand. Solar energy employment grew by 20% in 2015 and by another 25% in 2016. There are more than twice as many solar energy jobs now as there were five years ago.
When your small business chooses solar, it generates local spending and brings new jobs to your region. The people who install and maintain your solar power system are your neighbors, and they spend their incomes locally. This benefits local businesses, including your own company's bottom line.
The growth of the solar energy sector means that choosing commercial solar systems today puts your business at the forefront of where energy consumption is heading.
As traditional energy sources and fossil fuel generation face increasing regulatory and market pressure, businesses that have already made the switch to solar power will be better insulated from rising electricity costs and energy bills — and better positioned to meet the expectations of environmentally conscious consumers and partners who are driving the renewable energy economy forward.
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TerraSol Energies designs, installs, and services photovoltaic solar power systems in Pennsylvania, southern New Jersey, and Delaware. Contact us to learn more.
With over 15 years of experience delivering commercial solar solutions for businesses of every size — from small businesses to large corporations — TerraSol Energies is the trusted partner for businesses ready to switch your business to solar power and save on energy costs, reduce carbon emissions, and take control of their own power for decades to come. Talk to our experts at 888-873-9995!
Frequently Asked Questions
How much could you save by switching to solar?
By switching to solar, the average firm reduces its electricity costs by 75%. Because of these massive savings, commercial solar installations typically pay for themselves entirely within three to seven years.
On top of that, businesses can deduct up to 30% of the value of their solar installation from their federal income taxes through the Solar Investment Tax Credit.
What is the biggest downside to solar electricity?
While the article focuses primarily on the benefits, the biggest downside explicitly mentioned is the high upfront cost. The initial investment for a photovoltaic solar energy system can seem quite high for a small business. However, these costs are offset by the 75% reduction in electricity bills and the fast ROI of three to seven years.
What happens after 25 years of solar?
Solar energy systems are built to last and provide free electricity to their owners for over 25 years while requiring very low maintenance. The article notes that once you get your electricity from solar, you are locked in with free energy and do not have to worry about utility rate increases for the 25+ year lifespan of the system.
