Running a successful business is not easy. It involves juggling between mitigating numerous expenses and ensuring its profitability. While it’s not possible to eliminate all expenditures, you can still lower these increasing costs with a simple investment in solar power.
When you opt for solar, you do not just contribute toward financial savings but also promote a greener environment. Yet despite its positive contribution, solar is not a one-size-fits-all solution. So that raises the crucial question: are solar panels worth it?
If you are a small business owner wondering whether or not to invest in solar, keep reading. We will explore the benefits and challenges of solar and understand the specific considerations that will help you make the right choice.
What are the Benefits of Investing in Solar?
1. Lower operating expenses
Electricity bills are one of the crucial expenses incurred in daily business operations. When you install solar for your business, you can generate power and save your pocket from paying hefty power bills.
2. Increases Property’s Value
Nowadays, many people consider solar panels a long-term investment and are willing to pay more for solar power properties. So you can enhance your property’s value while saving money with commercial solar panels.
3. Give Energy Independence
One of the best parts about shifting to solar is becoming energy independent. When you invest in a quality solar panel system, you can reduce or even eliminate dependency on local energy suppliers.
Moreover, a solar battery system can store excess energy. So you can enjoy continuous electricity without worrying about power cuts.
4. Great Return on Investment
The solar system pays back for itself over time. It means you will start saving enough in a few years to cover installation costs. Also, you can earn extra through net metering, enabling you to sell excess generated solar power to the utility grid. In addition, you can take advantage of tax credits governments offer for shifting to solar power for small businesses.
5. Reduce Carbon Emissions and Earn Green Credentials
Traditionally, your grid-powered energy is generated with the use of fossil fuels that causes carbon emission, adding to climate change.
However, solar panels use sunlight instead of fossil fuels that don’t release any emissions. This way, you can contribute towards the environment and earn green credentials, earning your business a green reputation among customers.
What are the Challenges with Shifting to Solar?
1. High Upfront Cost
You need to pay a high upfront cost to install solar panels. Although solar infographics prices are now lower than before, they can still be hefty depending on the type of panel, rooftop and energy needs.
2. Requires Adequate Roof Space
One of the main problems in opting for solar for small businesses is the availability of roof space. For instance, if your building does not have enough roof space, it may not be possible to shift to solar.
What to consider when investing in solar panels?
Installing solar panels for small businesses is a significant investment. You must pay attention to specific considerations before making any decision.
1. Do you own the property?
If you own the building where your business functions, you can easily opt for solar due to control over roof space. But if you have leased or rented it, it is better to get permission from your landlord and then only think about getting solar.
2. What is your business energy cost and consumption pattern?
Before investing in solar, you should understand your monthly/quarterly energy consumption level and the expenses incurred. Usually, businesses operate 9-5 for five days a week. In such cases, solar can offset sunlight during peak hours and save on high costs.
3. How much money are you ready to invest in solar?
Commercial solar system prices have dropped in the last few years. Still, the actual amount relies on your business location, panel quality, and installer.
Generally, for a solar system ranging from 30 kW to 100 kW in Australia, you invest around $1,000 to $1,300. However, you can invest in solar by taking support through Power Purchase Agreements (PPA), loans, and operating leases.
4. What solar system size do you need?
Your solar system size relies on your roof space and energy needs. Whether you have limited area, just enough, or an abundance of space but a relatively lower energy bill, sizing your system is crucial in all these cases.
For instance, if you have a solar system that generates more power than your consumption level, the excess power gets wasted, or your retailer will pay a lower feed-in tariff rate for exporting it back to the grid. Therefore, you should choose an appropriate solar system size.
5. Are you eligible for government rebates?
The federal government in Australia offers rebates to small businesses in the form of small-scale technology certificates (STCs). These rebates usually equal one-third of the total solar installation price.
If you want to know how much rebates you would receive, you can reach us for assistance.
6. What kind of solar products suit your business?
Nowadays, you can find numerous solar brands in the Australian market. However, you should choose a trusted brand that may cost more initially but will pay off throughout its lifespan.
7. How quickly do you receive a return on your investment?
The investment cost has declined in the last few years, enabling you to assume a payback period on your solar investment between 3-5 years. However, it mainly relies on the rate of power and the time when you consume it.
Conclusion
When you run a business, it becomes crucial to use methods to minimise the loss and maximise the profit. Here, solar emerges as a knight in shining armour that helps you to reduce operating expenses and contribute to the environment.
We hope all the points discussed above will help you to opt for solar energy for your small business.
