What are the PROS and CONS of solar for business in 2023 [ Updated ]

by admin | Sep 30, 2023 | 0 comments

Last updated on October 2nd, 2023 at 11:39 am

Simply said, solar energy isn’t right for every business, but it may be an excellent, environmentally beneficial investment for many of them. Your company’s bottom line may be significantly affected by your decision to go solar or not. You need objective, correct facts to comprehend how solar can help or not help.

You may ask if we, a solar installation business, can provide unbiased information. That is an appropriate worry. We’ll just say that while not all companies can benefit from solar, many cans, and solar can offer significant financial and environmental advantages. For the sake of business, it is not good for our company to trick a corporation into getting solar when it is not in their best interests.

So, we’ve put up a list of pros and cons unique to solar for businesses to help you decide whether or not solar is good for you. You can use these to help you understand the advantages and disadvantages solar energy might have for your company.

Table of Contents

The PROS of solar for business

Solar Energy Lowers Your Expenses.
Tax incentives are excellent for installing solar.
Solar Can Protect You From Rising Electricity Prices.
Solar Systems Require Little Maintenance.
The Investment in Solar Is Low-Risk.
People love that it is environmentally friendly.

Solar Energy Lowers Your Expenses

Reducing costs and raising earnings is a straightforward business equation. The goal of every company is to increase productivity and strengthen the bottom line. One simple method to do this is with solar energy.

Your company can eliminate a substantial and necessary monthly expense by installing a solar system, allowing it to generate its own, cost-free electricity. You could become accustomed to these savings. Many solar panels come with warranties of up to 25 to 30 years, and some may even last longer. As a result, you’ll be generating free electricity for decades.

Tax incentives are excellent for installing solar

The government appreciates solar’s benefits to the environment. They are significantly reducing the cost of solar with tax incentives because they want more firms to invest in it.

Businesses can claim a credit on their federal taxes under the Solar Investment Tax Credit (ITC), which allows them to recover 26% of the cost of their system. The incentive will drop to 10% in 2024 after 2023 when it will be reduced to 22%. You could lose out on a sizable sum of money if you put off installing solar.

100% Bonus Depreciation is a beneficial additional tax-saving advantage. By doing so, you can front-load your investment in solar energy even more by accelerating all federal depreciation savings to the year your system is put into service.

Solar Can Protect You From Rising Electricity Prices

Although electricity rates may vary significantly from year to year, they will almost surely increase with time. Your company will be future-proofed against rate increases with a solar energy system.

In 15 years, your electric bill will most likely be higher than it was the year your system was installed. Your solar system could save you more money in 15 years than in 1. Depending on how your panels degrade and how much electricity you use.

Solar Systems Require Little Maintenance

Business owners already have a lot to worry about and manage. It can be too much to take on to add another thing that needs a lot of upkeep and maintenance. You might be shocked to learn that solar systems don’t need much regular maintenance.

The Investment in Solar Is Low-Risk

Solar is a very low-risk investment when compared to other types, especially considering the potential returns it may provide to businesses. It is a dependable technique that has been successful for many years.

When you invest in solar energy, you mostly rely on the future price of electricity, the durability of your equipment, and the continuation of the sun’s rays.

If you choose high-quality solar panels and inverters covered by warranties from the manufacturer, you should have no problems with your equipment functioning properly.

Furthermore, unlike other equipment investments, solar won’t increase your payroll or any other fixed expenditures, and its financial return is not cyclical like that of other equipment purchases.

People love that it is environmentally friendly

The environment will be significantly impacted by the installation of a solar system. You’ll be able to figure out how many trees you’re saving, how many barrels of oil you’re offsetting, and how many tonnes of CO2 you’re keeping out of the atmosphere.

Customers and staff will value your efforts to reduce your company’s carbon footprint because society is moving more and more toward an environmentally friendly future. Along with benefiting the environment, becoming green can help your business.

The CONS of solar for business

Solar Energy Requires an Initial Investment.
Solar Panels Require Space.
Without sunlight, a solar system can’t produce energy.
If you plan to move soon, it may not offer the best return.
Without batteries, solar won’t provide backup power.

Solar Energy Requires an Initial Investment

When it comes to installing solar, the initial cost is one of the largest obstacles. Despite the dramatic price decrease, it still requires a sizable investment.

Solar Panels Require Space

Where the solar panels will be erected is one thing you’ll need to consider. Many companies decide to place the panels on their roofs, converting unused space into a cash cow. The panels will be out of the way of any business operations when mounted on a roof.

All roofs, however, are not made for solar. If your roof doesn’t receive enough sunlight or can’t withstand the extra weight of the panels, you might want to look for another option. Ground mounts can be placed in the best spot for energy production, even though they do take up ground.

Without sunlight, a solar system can’t produce energy

A solar system requires sunlight to function. You will be able to save more money the more there is of it. However, not every area is suitable for solar energy due to factors like local weather patterns, trees, or structures that cast shade.

Solar energy is most effective when it is south-facing, inclined at a specific angle for your location’s latitude, and unobstructed by anything that could cast shadows. Solar power may not be an option if your facility is surrounded by enormous trees that shade the roof all day long unless you’re willing to remove the trees.

If you plan to move soon, it may not offer the best return

If you plan on moving your business to a different location a few years after installing your solar system, you may want to hold off until you’re settled in your new place. The longer you stay in your building to take advantage of that free electricity, the greater the system’s return for you.

Without batteries, solar won’t provide backup power

Your grid-tied solar system will stop supplying electricity to your company when the power goes out and the grid goes down. Although your solar system must shut off until power is restored, even if it’s sunny outside, your panels can still produce electricity.

This means that until you invest in solar batteries, you won’t have access to electricity. When the grid goes down, your charged batteries can start to operate to keep your business powered until the grid is restored if you have a battery-backed solar system. However, installing batteries might be expensive and won’t significantly boost the system’s profitability.

To summarise the advantages solar energy presents for businesses, it is a relatively low-risk, low-maintenance investment that may produce large short- and long-term savings while greatly lowering your carbon footprint.

There are some drawbacks despite all of its beautiful features. A specific site with adequate access to sunshine is required for a solar system, which also demands an initial expenditure. You’ll be better off staying in the same place for at least a few years if you want to maximize the return on your investment. Additionally, unless you decide to install batteries, solar won’t meet your needs for backup electricity.

Overall, solar can be quite advantageous for many organizations, but it isn’t the best option for everyone.

Going solar is now easier with Vareyn solar. It provides its customers with: