Sometimes being old-school is good, right? But when it comes to paying your electric bill, having an old-school mindset isn’t always best for your business. We’ve been preconditioned to pay our monthly electric bill and frankly, we ignore the frustrations that come with it.
The good news is businesses now have options to control their electric costs. Some of those options include LED lighting, energy efficient machinery, and alternative energy generation, like solar energy systems.
Today, many businesses are investing in solar energy as part of their business’ strategic goals, and here’s the list of reasons why:
Is solar energy a great investment? To answer this, let’s compare solar to other investment options. The average return of the S&P 500 since it inception in 1928 has been around 10%. The average return of a bank CD is around 2.5% at the time of this article. The average ROI of Commercial Solar for our last 180 customers was 14.5%. The average payback for those 180 customers was 8.62 years. It gets even better than that. Solar is not a linear return. Of those 180 customers, most received more than 50% of their investment back in the first year.
Does that sound like a great investment?
Business owners often say, “If I reinvest my money in my own business, I can generate a greater return than 14.5%”. Here’s where you need to make a distinction. Yes, reinvesting your money will grow the business, and growing your business is most likely your ultimate goal. However, business growth typically comes with increased overhead. In order to sell more widgets, your business needs to increase its production capacity – which means hiring more employees and/or purchasing additional equipment. That additional cost adds to your overhead.
On the contrary, solar energy reduces your overhead by reducing an expense. That savings drops directly to your bottom line and instantly increases your profit.
Solar is primarily paid for with electric savings and tax benefits. Regardless of whether or not solar is purchased, your company will continue to pay its electric bill and taxes. Why not reallocate this money you’re already spending to paying for a solar project? Paying for a solar project is merely the reallocation of money that’s already being spent.
Your electric bill is an out-of-control expense, and out-of-control expenses keep business owners up at night. This does not necessarily mean the cost cannot be absorbed. However, the Utility has complete discretion over the price it charges you for electricity creating uncertainty and making it difficult to budget. Controlling cost allows for better planning and fewer surprises. That leads to better business decisions. Solar energy puts your energy production in your hands and reduces an uncontrolled cost.
If I am manufacturing a product and my competitor has a lower cost to produce the same product, they will either be more profitable or cheaper in price. This may sound obvious and elementary; however, it’s important to consider the competitive advantage solar could give you over your competition? Lowering your cost to do business is a great way to beat the competition and will more than likely result in increased market share.
In a world where social media has exposed the way companies do business, good and bad have far more reaching effects than ever before. Solar is largely viewed in the American eye as something good! Whether that be from an environmental point of view, dependency on foreign governments issue or a smart business move, solar is looked at as a positive investment. Publicizing your companies solar project can bring a lot of positive business vibes. They may be hard to quantify, but customers will view your business positively for doing the right thing. They will likely help increase your customer loyalty and lead to increased sales.
Solar has a positive effect on the environment. The average small commercial solar project produces energy equivalent to 65 barrels of oil or 715 trees. You can ask the US government how they figure that out! This is based on 84 solar panels in the North East. That being said, solar does have a positive impact on the environment and future generations will thank you.
The last thing you need is more things to worry about, especially if its something you don’t have full control over. The beauty of solar is very little ongoing maintenance is required. There are no moving parts and the system is spread over many parts. If solar is installed correctly there should be very few headaches and the only reminder of having solar will be the monthly reduced electric bill. What a great reminder!
How would solar energy boost your business? The best way to find out is to speak with your local solar consultant. They are here to help guide you in finding out if solar is the right investment for your business. Let’s have a conversation! Call us at 877-851-9269 or send us a message.