Shifting to solar energy can be a great environmentally-friendly investment for your business. It can lead to benefits such as significant tax credits and opportunities to reduce costs. Since solar energy is eco-friendly, it’ll serve to attract workers and clients. However, even with such benefits, solar energy isn’t suitable for every small business.
So, how do you know if you should use solar to power your small business? There’s no universal answer. There’s no one answer to how much cash a business should have on hand. It depends on specific factors related to the business. To know if using solar is right for you, you need to examine its benefits and disadvantages. Keep reading to learn more about solar energy pros and cons.
Should Your Business Invest in Solar?
You might be wondering, should your business invest in solar? Before answering that question, you first need to understand solar energy. So, how does solar energy work? As a source of energy, solar energy is helpful in lighting, heating, and cooling businesses and homes. There are different solar technologies that people use.
The most common one is solar photovoltaic technology. It transforms sunlight into electricity. Others are passive solar technology and solar water heating. The first one warms places during winter. The latter provides hot water. Solar has many advantages, but that doesn’t mean it suits all businesses. Some of these benefits are:
- It limits operating costs
- Having the reputation of being environmentally conscious acts as an efficient marketing tool
- It’s a low-risk investment
- It’s low-maintenance
However, solar energy also has its disadvantages. Setting it up may be costly, and you need to stay in one place for a long time to reap the benefits. To know whether you should invest in it or not, weigh the solar energy pros and cons.
Solar Power Benefits for Your Small Businesses
The demand for electric power is continuously increasing. With the high cost of oil, most people and businesses are now turning to solar energy. In the United States, it’s common to see companies installing solar panels for their energy needs.
The benefits of solar energy are numerous. For one, it reduces your business’s dependence on non-renewable sources of energy. It is also quite cost-effective. Another reason why solar energy is a popular choice is its sustainability. That quality also serves to draw in clients.
Customers come to your business for the goods and services you offer. However, using solar energy will attract them to your organization, where they can make a purchase. Using solar informs others of your values and works as a great PR tool.
The Pros of Solar Energy
As mentioned earlier, you need complete information before choosing whether to use solar. As a business owner, you may wonder just how good is solar power. To answer that, here are some advantages of solar energy for your business.
Lower Operating Costs
When you shift to solar energy, you’ll see a significant reduction in your energy cost. That’s because when you use solar, you harness your own electricity. Thus, you can eliminate a significant part of your electric bill. When moving to solar energy, the initial investment can be higher than that of conventional energy sources.
However, installing solar panels is a long-term investment. What you save in energy costs can cover the high investment cost over the years. Eventually, you’ll reach a point of continued cost savings. Also, solar panels last for many years, meaning you’ll reap the benefits for a long time.
It Safeguards You From Increasing Electricity Costs
The price of electricity is almost certain to rise over the years. With solar, you can protect your business from the increase in rates.
Another benefit of solar is that you may generate surplus energy and sell it. If that happens, you can enjoy more income. It’s also a way of giving back to your community.
Solar energy is beneficial for the environment, and the government appreciates that. They want more firms to turn to solar. Thus, they provide businesses with tax-saving incentives. Examples of the incentives include the Solar Investment Tax Credit and the 100% bonus depreciation.
It Enhances the Value of Your Business
Many customers and employees care about the sustainability of a business. So, sustainable practices like solar energy will attract both groups. Thus, you might want to include the use of solar in your marketing strategy.
In addition, if you have surplus energy that you sell to your community, it will create a good image. It can also help you develop a good relationship with them. There are many ways in which your relationships today can create opportunities for tomorrow.
The Cons of Solar Energy
Considering solar energy’s pros and cons is essential in making the right choice. Some of the disadvantages of solar energy are:
High Cost of Investment
Shifting to solar energy requires high upfront costs. So, when making the change, look at it as a long-term investment. You’ll use the energy source for a couple of years before it can cover the initial cost.
Moving Too Soon Will Cause You To Lose Out on the Investment
Some people may want to move their organization to a different place a few years after shifting to solar energy. If that’s your intention, it may be wise to install the panels once you’re settled. That’s because you need to stay in the solar-fitted building for some years to reap the benefits. If you leave too soon, you may lose out on your investment.
Are Solar Panels Worth It for a Business?
A common question among business owners is, are solar panels worth it for a business? To answer that, consider solar energy’s pros and cons. That includes various things, including taking a closer look at the tax savings and examining the pros and cons of solar energy on the environment.
For most businesses, the benefits of solar energy outweigh the disadvantages. But, the solution may not be right for you. So, make sure you assess the pros and cons of solar energy before deciding.