How going solar can make your business more profitable
Learn how installing solar power can yield a powerful business advantage by lowering operating expenses and boosting profitability.
The unpredictable cost of grid electricity can be a substantial drain on a business’s bottom line. It can also make forecasting energy spend very difficult. As a result, more and more businesses are capitalising on the financial opportunities of solar power.
With solar photovoltaic (PV) panels installed at your facility, the amount of expensive electricity your site requires from National Grid is reduced. Instead, solar PV panels generate electricity on-site, using clean and free sunshine, lowering your reliance on the grid. This allows your business to reduce its operating costs. With lower business expenses, you’re able to keep a much larger portion of revenues as profit.
In other words, going solar can dramatically improve your bottom line. But the benefits of commercial solar power don’t stop there.
Going solar makes you more competitive – today and tomorrow
Better still, your energy savings from solar only grow with time. By installing solar PV panels today, you enjoy immediate energy savings – and thus, immediately higher profits. This is because utility rates keep trending upwards and oil and gas prices are set to rise as well.
By contrast, sunshine remains the same price forever. It is as free today as it will be 5, 10, or 25 years from now. While some businesses may struggle to keep up with rising grid prices, businesses who install solar are tapping into an abundant energy source that helps shield them from future rate increases.
This can be a powerful competitive advantage – especially if you operate in an industry with narrow profit margins.
Making commercial solar work for your business
By installing solar power to provide sustainable electricity for your business, you benefit from immediate utility bill savings that only grow with time. Installing a storage solution alongside your solar PV installation can further maximise your energy savings, boost resilience against utility prices, and further your competitive advantage.
Your electricity bill is comprised of 2 parts:
1.) Energy charges (kWh) for the amount of energy your business uses
2.) Demand charges (kW) for peak usage
While solar power provides a solution to lower your energy charges, demand charges can constitute a significant portion of commercial and industrial customers’ total electricity costs. Adding battery storage capability to your solar PV installation offers a way to provide relief during peak times.
This solution can optimise your energy costs and provide you with an advantage over the competition. While they are forced to reduce their energy consumption from the grid during peak times to avoid high-cost demand charges, businesses with solar and battery storage installed on their property can instead draw their power from stored solar energy that their PV system generated onsite and use it to power their businesses needs during these peak hours.
As a result, installing solar PV panels on your commercial property and combining it with a battery storage option can offset a much larger portion of monthly electricity bills than if you installed solar alone, as it can have a positive impact on both portions of your energy bill.
Many businesses believe that an energy solution like this must require a large capital investment. That is not exactly the case.
Financing your commercial solar investment
If you have the funds, purchasing your solar PV system with upfront capital is an option that makes solar an investment – one that pays for itself in the form of higher savings and profits.
But what if you don’t have the capital? No problem. There is a low-maintenance option for going solar and reducing your energy bill – with a Power Purchase Agreement (PPA). With a PPA, you purchase the low-cost solar electricity generated from the solar PV system installed at your site at a discounted rate for the term of the contract.
No matter which financing approach you use, going solar can help you save money and boost the profitability of your business.
However, there are some additional benefits of commercial solar power. In the next installment, we’ll look at how installing solar PV panels can enhance your corporate social responsibility efforts.
In the meantime, schedule a no-cost solar evaluation with our team today to learn more about commercial solar savings and how they can boost your profitability.