The next several years will be critical for businesses considering solar panel installation on their property. The fast resolution of supply issues arising from the COVID-19 problems has led to an increase in the cost-effectiveness of materials for solar installation.
Moreover, many commercial firms may be able to further reduce project costs with the assistance of the federal and state prizes provided under the Inflation Reduction Act. However, additional legislative demands from utility firms and related areas have made some solar projects more challenging than they were previously.
In the middle of these altering circumstances, the majority of businesses have a simple question: Will installing commercial solar panels actually result in cost savings? If those savings happen, how long does it take for them to begin? Let’s look at the details and get some precise answers for 2023 and the following years.
Lowers Monthly Energy Bills
Businesses are interested in learning when they can start to recoup their investment after the solar installation is operational and the upfront costs have been paid.
Part of these savings estimations is based on how much electricity your firm uses on a monthly basis. Estimates vary greatly depending on the industry and region, but the average is around $500. Other factors to take into account include the size of the installation and its average power production, but for the sake of this discussion, let’s assume a large-scale solar project that is meant to provide a sizable amount of a business’s energy needs.
Some data show that a firm may save up to 75% on monthly energy costs with an installation like this, bringing the average down to $125. There are those who calculate a significantly larger average proportion. It has been reported that mid- and small-sized businesses can save over $101,000 by making the switch to solar energy, even after installation costs.
That works out to several thousand dollars a year throughout the course of the solar installation, which is usually enough to cover the project’s financing and produce savings down the road.
Solar Battery Storage
Solar battery storage reduces energy use during operation hours despite being more expensive. For businesses whose power contracts mandate that they charge extra for electricity during peak hours, this is vital information. Increasing the amount of solar power combined with battery storage can assist in cutting costs when rates are higher. This can lead to even more savings with cautious handling.
Discounts and Offers
Quantifying financial incentives for solar panel installation is a difficult task. They vary according to state regulations, are impacted by new laws like the Inflation Reduction Act, and have various year-end savings thresholds, among other reasons. Although states that support solar energy, like California, may provide quick savings, many other areas are starting to catch up.
Under the right circumstances, your business should be able to save roughly 30% or possibly up to 70% on the price of a qualifying solar installation. It’s a wise decision to work with a lender, accountant, or financial counselor who understands solar incentives and their sometimes intricate legal requirements. They may also assist you with precisely figuring out how much of the installation work you do will be paid back.
Solar systems will save businesses money, but there are a few ways to maximize those savings and pay for the installation as quickly as feasible. Find out what the solar options in your area can offer before considering what an installation could achieve for you. The National Renewable Energy Laboratory is just one of many great locations to start.