Ever feel like your business’s electricity bill keeps creeping up, no matter what you do? You’re not alone. Energy prices are climbing, and businesses everywhere are feeling the squeeze. But here’s the good news—there’s a way out. Solar energy isn’t just an eco-friendly choice anymore; it’s a smart financial move.
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Companies across industries are making the switch, and it’s not just about going green. It’s about cutting costs, gaining energy independence, and setting up for long-term success. So, why are more businesses than ever turning to solar in ? Let’s break it down.
Let’s be real—every business wants to reduce expenses. And one of the biggest recurring costs? Energy. Traditional electricity prices aren’t just high; they’re unpredictable. One month your bill is manageable, and the next, it spikes out of nowhere. That’s not exactly great for financial planning.
Solar power flips the script. Instead of being at the mercy of fluctuating energy prices, businesses that go solar lock in lower costs for decades. With incentives and financing options available, even small-to-medium businesses can install solar panels with little to no upfront investment. Think of it like this: instead of renting your electricity from the utility company, you’re buying it at a fixed, predictable rate.
Some businesses are even turning a profit with solar by selling excess energy back to the grid. So, not only do you save money, but in some cases, you can actually make money. Now that’s a win-win.
A lot of businesses hesitate to switch because they think it’s complicated. Paperwork, installation, maintenance—it sounds like a hassle, right? Well, that’s a thing of the past.
Full-service solar providers, like REC Solar, handle everything from financing and system design to installation and long-term maintenance. Businesses don’t need to worry about navigating complex energy regulations or figuring out how to manage their own solar system. Everything is streamlined and turnkey, making it easier than ever to get up and running.
Plus, solar technology has come a long way. Panels are more efficient, battery storage solutions are better, and new advancements mean businesses can get more energy with fewer panels. It’s a simple, scalable solution that grows with your business.
Customers, investors, and even employees are paying attention to sustainability. People want to support businesses that take climate responsibility seriously. That’s why companies that integrate solar energy aren’t just saving money—they’re boosting their brand image and market appeal.
Consumers are making more conscious choices about where they spend their money. If a business is running on renewable energy, it sends a clear message: “We care about the planet.” And that resonates, especially with younger generations who prioritize sustainability in their purchasing decisions.
Beyond branding, there are also regulatory pressures to consider. Governments worldwide are tightening emissions standards and encouraging businesses to reduce their carbon footprints. By switching to solar now, companies can stay ahead of the curve rather than scrambling to comply with future regulations.
Okay, maybe not handing out free cash, but pretty close. In many areas, businesses that install solar can take advantage of hefty tax credits, rebates, and depreciation benefits. And in , these incentives are still going strong.
For example, the federal solar investment tax credit (ITC) allows businesses to deduct a significant percentage of installation costs. Some states and local governments offer additional rebates and grants, making solar even more affordable.
Then there’s depreciation—one of the biggest financial advantages. Solar systems qualify for accelerated depreciation under the Modified Accelerated Cost Recovery System (MACRS), meaning businesses can write off a large portion of their investment in the first few years.
When you add up all the incentives, the payback period for solar systems has never been shorter. Many businesses see a return on investment in just a few years, making solar an obvious financial decision.
If there’s one thing businesses crave, it’s control—over costs, supply chains, and, yes, energy. Dependence on traditional utility companies means exposure to power outages, price hikes, and supply shortages. But with solar, companies gain energy independence.
Pairing solar with battery storage takes it a step further. Businesses can store excess energy during the day and use it when they need it most—like during peak hours or in case of grid failures. This isn’t just a backup plan; it’s a long-term strategy to keep operations running smoothly no matter what’s happening with the power grid.
For businesses operating in areas prone to natural disasters or extreme weather, solar with battery storage can be a game-changer. Instead of losing thousands (or millions) in lost productivity during a blackout, companies can keep running as if nothing happened.
At the end of the day, businesses need solutions that make sense financially, operationally, and environmentally. Solar energy checks all those boxes. Lower costs, increased stability, government incentives, a stronger brand image—there’s really no downside.
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With commercial solar providers making the transition easier than ever, the only real question is: what’s stopping you from making the switch?
If you’re looking to future-proof your business, solar isn’t just an option—it’s the smartest move you can make in .
Most commercial and industrial solar installations are substantially larger than a typical residential solar power system. For perspective, the average size of a residential solar panel system is around 10 kilowatts (kW), while a commercial solar energy system can be up to several megawatts (MW), depending on the electricity needs of your company.
Different from utility-scale solar, commercial solar power is “distributed generation,” which means we use the energy the system produces at or near the point of generation. Distributed generation projects, such as rooftop or ground-mounted residential solar, are usually connected to the local electric grid. This allows your business to take advantage of net metering, a policy that enables you to send unused electricity back to the grid in exchange for electricity bill credits (more on this below).
Here’s why so many businesses choose to install solar:
Note: These prices will vary depending on your business’s location, the equipment you select, and the type of system you install.
If you’re still concerned about how to pay for your business’s solar energy system after incentives, don’t worry. Most businesses don’t pay upfront for solar because there are many financing options available. You can finance your system with a solar loan or choose a third-party ownership arrangement like a lease or power purchase agreement (PPA), though you won’t be eligible for the direct benefit of tax incentives if you don’t own your system.
Commercial solar provides a great return on investment. According to the U.S. Energy Information Administration (EIA), in , the average commercial building spent $650.04 on electricity (likely on par with most small-to-mid-sized-businesses). Over a year, this equates to $7,800 in operating expenses. Over 20 years, your business will spend about $156,010 on energy costs.
Based on the same EIA dataset, the average commercial property consumed about 69,540 kWh of electricity in . Let’s assume your business installs a solar panel system that offsets 90% of this electricity consumption. Let’s also assume that your system’s production ratio (the ratio of its estimated energy output over time, in kWh, relative to its actual size, in W) is 1.4 (it typically ranges between 1.1 and 1.7 in the U.S., depending on your location).
How big of a system does your business need? Plugging in our numbers from above, we get:
System size (in W) = Annual consumption (569,540 kWh) * system offset (0.9) / production ratio (1.4)
This gives us a system size of 44,704 W or about 45 kW. According to our table above, a 45 kW system costs about $39,150, including the ITC and five-year depreciation with MACRS.
Over 20 years, your business will save about $101,259 in electricity costs with solar:
20-year savings = 20-year electricity costs ($156,010) * system offset (0.9) - upfront solar energy system cost including incentives ($39,150)
Beyond the direct financial benefits, installing solar panels can also help your business protect itself against electricity price volatility and inflation. In many states, the price of electricity can fluctuate significantly due to demand, creating a headache for business owners who closely manage their cash flow. With solar, your business can lock in electricity prices and reduce reliance on the unpredictable electricity market, making it easier to budget and plan for the future.
When businesses contract with solar companies, workers in the local market complete the installations. Greater demand for solar projects increases the availability of high-quality, well-paying jobs. As of , there are over 250,000 solar jobs nationwide, which represents a 9% increase year-over-year.
Depending on the size and scope of your project, you could provide jobs for multiple crews of contractors for over a month at a time. In the future, these workers could become your customers.
Whether you’re looking to save on electricity bills or build a more sustainable brand, going solar is a great choice for many businesses. Unsure how to get started? EnergySage offers a concierge service for businesses to make installing a solar panel system simple. We’ll provide you with an initial solar benchmarking estimate to show how many solar panels you can fit on your property, how much electricity they’ll produce, and how much you can save with solar. When you’re ready, we’ll gather custom quotes from up to three vetted solar companies in your area and help you choose the best option for you.
A version of this post first appeared on Inc.com.
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