Electricity rate spikes
The electric bill is a top-three expense for companies, especially in manufacturing. So, when electric rates go up, you feel it. What’s worse is that these electricity rate spikes are entirely out of your control.
While controlling your costs is a key priority, using solar power to gain control of your electric bill is not often considered to be a viable option. Luckily for business managers, this misconception couldn’t be further from the truth.
The right solar solution will dramatically lower your electric expenses, reduce your cost volatility, and put the power back in your hands (pun intended).
In this article we will walk you through the common misconceptions about using solar power for your business, and the cost-benefit you’ll experience, all to help you make the smartest decision.
How power companies limit your control over cash flow
As a top 3 expense for your business, rising energy costs can really limit your flexibility as an organization. In addition to not having any control over your energy costs, they can rise unpredictably, making it incredibly difficult to plan for future expenses and pricing products your facility produces.
While solar is often viewed as a ‘nice to have’ opportunity for a less energy-dependent future, the right solar solution for your business provides real savings on energy expenses, especially in this volatile environment that has your rates spiking.
The right solution provides your business with not only a dramatically lower energy bill each month, but complete control over your energy bills. This allows for more predictable planning and immunity from energy spikes that will put your competition in a tight spot.
De-mystifying solar energy myths
Solar energy is only beneficial in warm weather- False Solar panels require sunlight, not the heat the sun gives off, meaning you can reap the benefits of solar panels all year long, not just during the Summer months.
Solar panels are difficult to install and require constant care- False Quality solar panels are made to last. Although the installation process may take a bit of research beforehand, they typically require less upkeep than a traditional roofing system. Not to mention, Smart Roofs takes care of the installation process for you.
Solar panels are costly and not economically viable- False With sustainability on the forefront of business owner’s minds’, solar panels are becoming cheaper than ever. With substantial federal funding options available, the out of pocket cost for installation and maintenance has decreased significantly.
Addressing common objections to solar installation
The main hesitancies we hear about transitioning to solar is that the economics of the deal are “not attractive enough.” Certain projects do not yield an acceptable return because of numerous issues.
With a lower electricity bill, investment tax credits, rebates, various incentives, RECs, and free roof replacement, solar really does have the potential to save you thousands of dollars each year. According to Energy Sage, going solar can reduce energy costs up to 89% than traditional energy sources.
Along with this, we hear business owners bring up how this will affect their IRR rate. What are the benefits of investing in solar rather than something else that directly affects the company? Like we mentioned earlier, electricity is in the top 3 expenses for larger companies. Saving here will ensure a higher IRR, freeing up more of your expenses for things like additional work space, or manufacturing more products.
Another common objection we hear is that companies do not know how to start the process. Business owners are unaware of related incentives and how the setup actually works. We hope that this article will be a great reference for business owners in order to decide if solar installation is the right investment for them.
The benefits of the right solar solution for your business
Like we mentioned previously, solar is a great option for most companies, but why is it so great and how can it save you money on your bottom line?
For starters, with solar, out of pocket costs are much more miniscule than people might think. Reimbursements for solar installation are offered federally and state wide for businesses looking to transition to a cleaner energy source.
With the push for solar roof installation, there are countless incentives in place to allow businesses the opportunity to install solar panels. To learn more about the number of ways to finance your solar project, read our article about tax breaks and federal and state incentives here.
Along with this, solar installation provides business owners with certain federal tax breaks related to clean energy. With an extension on the ITC, You can save up to 26% on federal taxes with no maximum claim amount for installation costs.
Another great benefit of installing a solar energy system is that you will see the combination of revenue streams from solar Renewable Energy Credits, or RECs. RECs are transferable certificates you can obtain through your electric company in order to trade them in for money off of your electric bill.
This goes into our next point, solar installation can drastically reduce or even eliminate your electric bill with your utility company. Because of various incentives, tax breaks, and RECs, the price of solar can be virtually nothing, depending on the setup your facility requires and where it is located.
Need another reason to install solar panels for your company? Well, if your roof needs to be replaced, federal and state incentives will actually pay for roof replacement when you install solar.
There are countless benefits related to solar installation. When partnering with Smart Roofs, we will manage the entirety of the process for you in order to ensure a seamless transition and assist you in saving as much money as possible.
Smart Roofs is here to help you in your transition to solar energy
As a leading solar energy company, Smart Roofs does not want you to go in blind. We take care of the installation process for our customers as well as prioritize transparency so that you are aware of any and all upfront installation and long term savings. To learn more about how we can help your company with your solar investment, reach out to us here.