Thursday, October 20, 2016, AM | Leave Comment
Aside from helping save the environment and reduce global emissions, a transition away from fossil fuels towards solar energy is also a solid business decision.
Not only is solar energy more clean than fossil-fuel generated energy, it is also a highly efficient area in which to invest.
Here are six ways you can help your company save money in the long run.
Large Tax Incentives for Solar Investments
Recently, the Solar Outreach Partnership (SolarOPs) compiled a guide for businesses that documents the substantial savings that commercial entities can utilize, should they decide to invest in solar energy.
According to SolarOPs, new solar installations are eligible for a federal solar investment tax credit for up to 30% of the costs for a solar system.
In addition to this tax credit, businesses have access to various state tax credits as well, which are conveniently made available through the U.S. Department of Energy.
Solar Panels Save Businesses Money
Assuming you have a reliable solar provider, solar panels can save companies a large amount of money in a relatively short period of time.
While many people believe harnessing solar energy for their business may represent a prohibitive cost for too long before receiving a return on investment, a recent solar investor who owns an aquatic center in North Carolina reported only a one-year recuperation of costs from his solar installation.
Indeed, recent research indicates that in 86% of states a solar investment return on investment outperforms a five-year certificate of deposit. Given low interest rates across the board, a stable asset purchase may actually boost your revenue.
Increased Property Value
On average, solar panel costs dropped about 80% between 2008 and 2014. This is due in no small part to increased efficiency within the panel manufacturing community.
At the same time, property values are demonstrably higher with investments in solar panels, which explains why so many big corporations like Macy’s, IKEA, and Amazon have gone in on solar energy.
Energy Price Consistency
As a recent research whitepaper from McKinsey and Co. demonstrates, solar energy is an investment not only in cost savings and property values, but it also ensures consistent pricing for businesses.
Because solar panels are enduring assets, they usually allow for power-purchase agreements lasting fifteen to twenty years. This allows companies to decouple from volatile fossil fuel commodity markets and take control over their energy future.
The Ever-Important Goodwill Balance
Even for large businesses, goodwill cannot be overvalued. Companies with a perception of being committed to corporate social responsibility have reported enormous returns on investment.
Solar energy would certainly fall into this category. For example, IBM’s Corporate Service Corps has, by the company’s own admission, brought in $600 million from an initial allocation of $200 million.
As more businesses, from mega corporations to mom and pop shops, invest in solar energy, it will no longer be optional to invest in sustainable operations to maintain a competitive edge.
Energy Reliability is Paramount for All Operations
As the United States has deregulated its electric utility firms, electricity reliability standards have declined.
For companies interested in maintaining operations, regardless of sensitivity to long term outages, having a consistent source of readily available energy is essential.
Solar energy is the apex of reliability, which ensures operations stay on time without increased costs or disappointed customers.
For any business owner, there is a clear advantage in solar investments. Solar energy will continue to become cheaper, while installation costs fall precipitously in the ensuing years.
However, the sooner businesses invest in solar energy, the sooner they can recoup the initial costs and out-compete their rivals in the marketplace.
Kara Masterson is a freelance writer from West Jordan, Utah. She graduated from the University of Utah and enjoys writing and spending time with her dog, Max.