As a commercial business owner, did you know that you can reduce your reliance on the utility grid and lower your electric bill by installing a solar power generating system?
The primary operating expenditure of most businesses is the electric utility bill. According to the US Department of Energy, the average small company pays about $700 to $900 per month for power. For large enterprises, the cost of power can be many thousands of dollars per month.
Being reliant on the power grid also means your business is subject to electric rate fluctuations. Sudden price increases add uncertainty to your business, especially cash flow management. And if that’s not enough frustration, utility pricing schemas are devised to charge higher prices during high-demand, peak usage times.
It would appear that utility power companies have the upper hand. Or do they?
Maybe it’s time to ease the burden and look at how your business can benefit from solar panel installation. Getting your energy expenses under control with solar is a practical yet often overlooked method of increasing your bottom line. Your business can improve its bottom line by utilizing solar to stabilize fluctuations in energy expenses, protect against energy market volatility, and reduce payments to utility companies.
Solar technology is now an affordable alternative energy option for all business sizes. It’s also a dependable electrical system that will save money, improve property value, and enhance public perception. Businesses that go solar receive an excellent return on investment within a short period.
The levelized cost of energy (LCOE) for solar is one-third the cost of traditional utility rates. Businesses that generate solar energy are guaranteed a 70% savings on energy for the useful life of a solar energy system, approximately 30 years.
The payback time on a commercial solar project is about 3.5 — 5.5 years, yielding a 15-30% annual return. Once the payback is reached, businesses enjoy free electricity for the additional 18-21 years.
When you use solar power, you save money in multiple ways. For one, you minimize your spending on conventional utility power and apply those savings towards investment in your business. As with any operating asset, solar has a Net Present Value (NPV), and in the case of solar, it is an attractive figure since the incentives help pay the upfront investment.
Along with saving big on your utility bill, you will be able to take advantage of a government tax incentive that covers 26% of the cost of new solar panel power system installation completed before 2023.
In addition, the Modified Accelerated Cost Recovery System (MACRS) program with Bonus Depreciation is available to reduce the upfront investment.
PPM Solar has the track record and experience to bring your commercial project to life. We have experience in Florida with a wide range of solutions for different industries, utilities, nonprofits, and academia.
By opening a conversation about a solar project, you start the process of benefiting your organization and demonstrating environmental stewardship to the business community and your customer base.
Let our experts guide you in this process and map out the best options for your business.