How Can Installing Commercial Solar Panels Save Your Business Money?
Is your business planning to make the switch to renewable energy and set an example for sustainability and innovation for all your clients and employees?
We understand that it can be challenging to make the transformation to renewable energy, but it’s crucial for the environment and your bottom line. You wonder whether or not it is really worth the investment for your business and how it will pay in the long term.
That’s why we are here.
In this article, we will help you figure out just how much returns and savings you can expect using solar panels. We will also touch upon the payback period and the different financing options available to you.
How do Solar Panels Save Businesses Money?
The cost of solar panels has dropped significantly in recent years, making it a much more viable option for businesses looking to invest in renewable energy. Not only that, but businesses can also take advantage of government incentives that are designed to promote solar power adoption.
1. Energy Independence
What if you are catering to a very important international client on a highly time-sensitive project and suddenly the power goes off?
Unfortunately, we are well aware that power cuts in India are expected compared to the developed counterparts and some power cuts can last hours or even days!
Even the slightest delay in business processes can throw the entire project’s schedule out of order and cause a massive loss in revenue. This is where solar panels can be a lifesaver for your business, as they allow you to power your operations without relying on the grid.
Solar panels give you the energy independence you need to keep your business running smoothly without disruptions.
2. Reduced Operating Costs
Solar panels can help you save significant money on your monthly electricity bills. This is because solar power is a free source of energy that can be used to offset the cost of grid electricity.
In fact, once you have installed solar panels, your business will be able to produce its own electricity and sell any excess back to the grid. This way, you can further offset your energy costs and even make a profit!
3. Government Incentives
The Government of India offers a number of incentives and subsidies to encourage businesses to switch to renewable energy.
Some of these incentives include tax breaks, accelerated depreciation, and preferential tariffs. As a result, installing solar panels can help you save a lot of money on your taxes.
4. Greater Capital Efficiency
If your business has small cash reserves, then you may be thinking that investing in solar panels is not a wise use of your money.
However, it is important to remember that solar panels can be financed through a number of different methods, such as no-cost EMI, MSME loans, solar loans, and more. This means that you can install solar panels with little or no upfront cost.
What’s more, solar panels have a very long lifespan and require very little maintenance, which makes them a very efficient use of capital.
5. Improved Sustainability
As a business, it is important to be aware of the growing trend of sustainability. More and more consumers are interested in doing business with companies that are environmentally responsible.
By installing solar panels, you can show your clients and employees that you are committed to reducing your carbon footprint. This can help to improve your brand image and give you a competitive edge.
6. Better Use of Large Cash Reserves
Dormant cash depreciates in value due to inflation, which can have a significant impact on your bottom line. Investing in solar panels is a great way to generate a return on your idle cash reserves and protect yourself from the effects of inflation.
Solar panels can offer returns greater than typically fixed deposits that most banking partners provide, and they also offer the added benefit of being environmentally friendly. You can check this for yourself using our solar calculator.
What is the Payback Period for Solar Panels?
The payback period is the amount of time it takes for your solar panels to pay for themselves. For example, suppose it takes 5 years for your solar panels to produce enough energy to offset their cost. In that case, the payback period is 5 years.
This period can vary depending on a number of factors, such as the cost of the solar panels, the amount of sunlight they receive, and the government subsidies under the National Solar Scheme available. However, as the cost of solar panels has been falling, the payback period has been getting shorter and shorter.
In India, the average payback period for solar panels is around 8 to 11 years. This means that you will start seeing a return on your investment within 11 years. However, this number can go down with high-efficiency solar panels from SunEdison, better solar panel protection, and timely maintenance.
Some factors that are leading to lower payback periods for solar panels:
- Falling prices of solar panels
- Rising costs of non-renewable energy
- Increasing efficiency of solar panels
How Much Money Can Solar Panels Save?
The amount of money that solar panels can save businesses depends on a number of factors, including the size of the installation, the amount of sunlight it receives, and the local electricity rates.
However, on average, businesses can expect to save around 20%* on their electricity costs after installing solar panels. This number can go up to 50%* if the business takes advantage of government incentives.
There are a number of reasons why businesses should switch to renewable energy, such as solar panels.
Solar panels offer a number of benefits, including lower electricity costs, improved sustainability, and better use of large cash reserves. If you are considering making the switch to solar, then be sure to check out our solar calculator to see how much you could save.
Solar panels have become increasingly popular in recent years as the cost of renewable energy.