With the constant rise in electric and oil prices and the sunny weather across Cairns, it would be a loss if businesses did not consider leveraging sunlight as a source of electrical energy. Businesses leveraging solar power usually aim to reduce their monthly energy bills, and to offset the cost of air conditioning for the entire business day. This article will provide you with the major benefits of purchasing a commercial solar installation outright.
Benefits of commercial solar installation
If you have a small business, here are some reasons why you should consider shifting into commercial solar system now:
1. Helps reduce operating costs and save your business money
Installing a commercial solar system will help your business become financially-stable and improve its efficiency. While it might sound contradictory, especially since buying a commercial solar system outright can have a high capital cost, it is a worthwhile investment for your business over the long term. Besides, an upfront finance is not the only means to reap the benefits of a solar installation. Just watch as your operating costs lessens and your profits margins increase, driven by more consistent electrical costs. This can help your business especially if you want to expand in the future.
2. Helps reduce your monthly energy bills
This is one major reason why homeowners and businesses shift to commercial solar installation. It’s understandable, considering that monthly energy bills can be variable. With solar power, your business can enjoy savings that can be used for future investments. Furthermore, you won’t expect solar power to fluctuate in price unlike electric power – solar power after all is delivered by the sun.
2. Can help improve property value
As the owner of a commercial building, investing on a commercial solar installation can help your business and its tenants. Specifically the building where your tenants are operating in can command a premium in property value.
3. Makes your business “green”
Investing a solar system for your business means you are contributing towards compliance with your local area’s environmental laws, and broadly speaking, sustainability.
This includes reducing your business’s carbon footprint and greenhouse gases emissions. Irrespective of your personal opinions on the effects of global warming, environmental awareness is particularly important especially when marketing to consumers. Incorporating our commercial solar installation as part of your business can help in demonstrating corporate social responsibility.
This serves as a good example to other businesses to be more responsible and consider the long term impacts of our current electrical production and its impacts on environment and the community, instead of focusing solely on profits.
4. Won’t hassle you with frequent maintenance
A solar installation particularly those without a battery, usually requires little maintenance at most. Your business won’t be as susceptible to power losses which can cripple your operations, abilities to service customers, revenue and profit. This is particularly frustrating when it occurs during peak business hours. Given the frequency it has occurred in our city, considering an alternative source of electricity will help you provide an excellent customer experience, lighting and air condition when it matters most.
Properly maintained and apart from unforeseeable events, our commercial solar installation will provide power to your business for several decades and is backed by a manufacturer’s and own own solid warranty.
5. Can provide a great ROI
For one, investing on solar energy can provide long-term savings and ROI to your business faster than using electric power. The government also provides incentives for businesses who use solar energy. This is explored further on. However, based on business cases found on SolarChoice, your anticipated payback period and internal rate of return are 4.6 years and 29% respectively, assuming the standard 3% electrical rate of inflation, for systems with less than 100kW. If you’d like more advice for your business, contact us for a Commercial Energy Audit.
Government incentives
As mentioned, the government offers incentives and rebates to individuals and businesses that use solar power for their daily operations. Businesses with solar installation can qualify to receive among the following perks from the government:
1. Tax Incentives
Since May 2015, the government has permitted businesses with an annual turnover under $2 million to claim an instant asset write-off for purchases under $20,000 and applies until the end of this financial year (June 30, 2019.) This means that if you qualify, you can claim the cost of the solar panels and battery installations upfront instead of spreading the claim over several years.
2. STCs
An abbreviation for Small-Scale Technology Certificates, this scheme was introduced by the Australian government. It is offered to customers who will install approved solar systems. The STC can be redeemed, resulting in an instant deduction off the costs of a solar installation. Depending on the size of the solar system, you can receive STCs equivalent to thousands of dollars that is used to offset the price of your solar installation. Unfortunately, the number of STC issued decreases annually and is expected to cease by 2030. Given the scarcity, it is therefore important to take advantage now, more than ever, if you are considering to purchase a solar system.
3. Feed-In Tariffs
This refers to credits paid to businesses for excess electricity the solar system that is fed back to the grid. Depending on your location and the size of your solar installation, you will be eligible for a given feed-in tariffs rate. To find out which rate you might be qualified for, and how much you can benefit given your current electrical use, contact us for a Commercial Energy Audit .
Conclusion
Purchasing a solar system can help your small businesses in many ways. Aside from providing instant long-term savings and consistent ROI, a solar installation can improve the value of your commercial property. You can not only be compliant with environmental laws, you can also be a role model for other businesses to follow suit.
Electricity can be expensive especially during normal business hours, or operating during the peak period. This can affect your operating expenses and profitability, often without warning. That is why it is a good reason to consider installing a commercial solar system installed as part of your infrastructure now. In our experience, the vast majority of small businesses can benefit from purchasing a solar installation such as reducing monthly electricity bills, redistribution of profits and operating expenses. There are other methods to leveraging the benefits of a solar installation if you are unable to afford the outright fee, including solar leasing and power purchase agreements. These will be discussed in another article. Or to get started, contact our friendly team to see how much you can benefit from a solar installation!