As a small business owner, you will at some point be looking for ways to reduce the operational costs for your business. Besides that, you may also be the type who becomes aware of the impact your business has on the environment around you. There are ways you can reduce your business carbon footprint and save money too.
Solar power has become a sustainable and cost-effective energy alternative for small business owners to counter rising utility prices. Solar systems today enjoy a considerable reduction in purchasing and installation costs. Many small-sized businesses are still in the process of understanding how solar energy is effective for them. Those companies that install solar systems already receive significant results by using solar power. Installing a solar system may seem like a hefty initial investment for businesses but it provides multiple advantages in the long run.
Some of the reasons for how solar power can provide benefits to a small business
Reduce Electricity Rate Hikes in the Long Term
Generally, electricity prices have gone up by an average of three percent annually. One of the biggest reasons to go with solar is to eliminate or significantly reduce your electrical bill. Going solar means you’ll be able to avoid most or all of the costs associated with getting electricity from the grid while also improving the environment in the long run. Your savings with solar power depend on a few factors, like:
- How much does your quarterly electrical bill cost you?
- Are your location and your business optimal for solar?
- How many panels can you fit upon your workplace roof space?
- What kind of inverter are you looking to get and how much DC power do you want it to invert?
- What are your financial options with a quoted solar installation?
With the above out of the way, you must also always keep in mind what rates your paying to your retailer. As that information can just as much determine what system size you will need to cut your bills in half or nullify them entirely.
If your a small business with fluctuating cash flow, going solar does definitely protect you from rising electrical prices. By investing in solar, you reduce or eliminate your electrical costs depending on the system size and make your monthly bill more predictable. The other side of the coin is when your system size blows your bill out of the water. You can then look forward to getting credit to your next bill that can be withdrawn as a check, directly putting cash in your pocket.
Small Scale Technology Certificates are still alive and kicking
Even in 2020, you will still get sizeable governmental rebates and other financial incentives to help make getting a solar system an attractive and cost-effective electrical solution from the start. The federal government offers Small Scale Technology Certificates (STCs) to small business owners or entrepreneurs who invest in solar PV systems. The number of STCs you can get depends on the size of the solar system (e.g. whats is its rated kilowatt size?) along with its respective location with Australia. The amount you’ll get from STCs depends on what the current going rate is on the market. An STC usually hovers between $34 to $40 per certificate in the open market and STCs are usually sold on the market by a specialist STC broker.
There are two markets for small-scale technology certificates (STCs): the open market, and the STC clearing house where certificate prices are set at $40 (GST exclusive).
If you install a solar system, Feed-in tariffs (FiTs) are also available for businesses. It means you’ll be paid for excess electricity generated by your solar PV systems which send back to the grid. Tax advantage differs by area, so ask for professional guidance.
Generate an Attractive Return on Investment on Large Scale solar projects
Nowadays, any small business or company must be aware to allocate their capital to generate the maximum return. From an ROI point of view, installing a commercial solar system isn’t an expense, they are one of the best ways to invest with an attractive return via Large Scale Generation Certificates. Large Scale Generation Certificates are created on a yearly basis based on the actual amount of power generated by an accredited and registered renewable energy power station. Large-scale generators, therefore, provide an ongoing revenue stream for their operators.
Reliable and maintenance-free energy
Solar panels are an extremely reliable source of power that should last 25 years or longer. Of course, not all panels are created equally regarding their reliability or efficiency. So it’s super important to ask the right questions of the solar partners you evaluate to make sure you get maximum dependability for your dollar. After installation commercial solar systems also require very little ongoing maintenance.
Boost the value of your business
Solar’s greatest advantage is that it can reduce your electric bills. Since utilities are huge expenses for small businesses, these money savings have a significant impact on reducing total operational costs. If you newly install a solar system, you have the option of feeding energy back into the electric grid. So you could be eligible for a feed-in tariff (FiT) in your state or territory. It means you’ll be paid by your state government a set sum of money for the excess electricity generated by your solar system sends to the grid. Even if that’s not available in your area, then your business will improve in net income that ultimately boosts the value of your business.
Future Generation will be benefited from your adoption of renewable energy
Solar is a great way to diminish your carbon footprint. Solar provides clean, pure energy that also reduces greenhouse gas emissions and helps to combat our collective dependence on fossil fuels. Most home-owners and businesses go solar because they are focused on decreasing environmental issues like climate change or any kind of problems related to carbon emissions. The electricity which solar panels produce is emissions-free. At this point, when you utilize renewable solar energy to meet your energy needs, then you reduced the demand for power from your utility. Accordingly, your utility plant discharges less carbon while delivering the power needed to meet customer demand. By avoiding non-renewable energy sources, companies can create an environmentally responsible image and support green business aspirations. These are direct benefits for the world that our future generation will be living in, and it’s an effect that can take place while simultaneously helping your business succeeds.
Choosing solar for your small business can make a big impact to boost the value of the business and generate an attractive return on your investment, not the only environment. Solar Penrith provides commercial solar installation services for which your small businesses will get improving business results. Because “green” credentials are a powerful driver of consumer purchasing decisions, creating goodwill, and improving business results.