Factors to Consider When Evaluating Solar Power for Commercial Applications

Home | Our Blog | Factors to Consider When Evaluating Solar Power for Commercial Applications

September 12, 2014 | By RGR Marketing Blog

When Will Going Solar Pay Off for Your Business?

There was a time when going solar was generally the domain of those whose concern for the environment outweighed their concern for saving money. Solar panels were a great way to offset a business’s carbon footprint, but as an investment, they were dubious at best.

Of course, that’s all changed dramatically now. Over the past decade, photovoltaic technology has advanced by leaps and bounds, making the process of going solar a smart long-term investment that also happens to be great for the planet. For businesses, money talks, and many companies both small and large are jumping on the solar bandwagon; not just for PR purposes or to reduce their environmental impact, but also to pocket the substantial savings that solar power can bring.

Going solar isn’t a decision that should be taken lightly. What are some factors to consider when evaluating solar power for commercial applications?

When Will Going Solar Pay for Itself?

These days, going solar pays for itself, but the amount of time it will take to do so varies. Forecasting the payback point, that time in the future when energy savings will fully recoup the initial capital outlay of purchasing a solar system, is simple.

One simply divides the net cost of the solar system by the predicted annual savings, and the resulting figure is the approximate number of years it will take for the investment to pay for itself. Of course, this figure is a simplification; it doesn’t take into account inflation, rising utility costs, or taxes paid on revenue not spent on utility bills.

Lifetime Savings for Businesses With Solar

Over the lifetime of a solar system, a business is likely to save a substantial amount of money. The typical lifespan of a photovoltaic system is 25 to 30 years, far longer than it will take for the average solar system to compensate a business owner for its initial cost.

The additional savings can be thought of as a return on investment, or ROI. When calculating ROI, it’s important to take into account several variables, including current utility bills, projected annual increases in electricity costs, the power production capacity of the solar system being installed, maintenance costs, government rebates and incentives, taxes, and if the system is being financed, then interest rates and finance charges, as well.

Accelerated Depreciation

The United States Government allows businesses to accelerate depreciation rates on equipment such as solar systems. This allows them to net respectable tax advantages when going solar. The majority of the depreciation can be taken within the first year, and the remainder can be utilized within 5 years of investing in a photovoltaic system.

The Benefits of Going Green With Solar

An ever-growing segment of the population is demanding higher levels of accountability from the business community than ever before. Consumers want to support companies that stand for something, that take accountability for their actions, and consider their social and environmental impact. Going solar shows concerned citizens that a business is about more than simply turning a profit. The public relations benefits of going green cannot be overstated, and they’re only going to become more and more attractive over the coming years.

Business is all about dollars and cents, but perhaps the biggest benefit of going solar is the peace of mind that comes with knowing that one’s business is making strides to become part of the solution to climate change, instead of remaining part of the problem. A clean conscience makes a healthy balance sheet that much sweeter.

[Photo Credit: Skytech Solar]

Start making more
money today!

Get Started

Popular

Recent

How to Use a Solar Referral System to Generate Solar Leads November 18
Top 10 Strategies for Effective Solar Energy Marketing July 7
Apple’s New Solar Farm Partnership to Generate a Lot of Power March 5

How You Can Thrive During the Winter as a Home Services BusinessDecember 18
The Best Ways to Keep Your Mortgage Refinancing Business Busy Through the WinterDecember 11
Seasonal Marketing Strategies for Selling Solar in WinterDecember 4

Contact Us

Get started with free* leads.

Call us at 310-540-8900

Don’t take our word for it—find out for yourself how good our leads are and what a difference working with us can make.
Call us at 310-540-8900 or fill out the form below and we’ll tell you how you can get high quality leads for free*.

I authorize ReallyGreatRate, Inc. to communicate with me via email.
* Get up to 10% free leads on your first order!

When Will Going Solar Pay Off for Your Business?

When Will Going Solar Pay for Itself?

Lifetime Savings for Businesses With Solar

Accelerated Depreciation

The Benefits of Going Green With Solar

Start making more
money today!

Search Categories

Latest from Twitter

Contact Us

When Will Going Solar Pay Off for Your Business?

When Will Going Solar Pay for Itself?

Lifetime Savings for Businesses With Solar

Accelerated Depreciation

The Benefits of Going Green With Solar

Start making more money today!

Search Categories

Tags

Tag Cloud

Latest from Twitter

Contact Us

Let’s connect on social media

Let's talk

Mortgage

Solar

Home Improvement

Start making more
money today!