As businesses warm up to using commercial solar power to offset utility costs, the market has seen significant year-over-year growth, shifting from just over 1.022 gigawatts of installed solar capacity in 2010 to 17.351 gigawatts in the first quarter of 2023. At the same time, the cost of a commercial solar power installation has dropped dramatically, with statistics showing that the cost has dropped 69% since 2010 according to the National Renewable Energy Laboratory. During that same time period, it’s estimated that the average electrical rate has increased by 26.8%.
These market changes have made commercial solar power a more attractive option to many businesses who are trying to conserve capital for business growth. However, there are many other benefits to a commercial solar power installation that you may not have considered. These include:
- Solar power can seal the deal. Dan Morris at Advantage Terrafab had a foreign prospective client visit while touring several production facilities in the US, who hadn’t seemed engaged during the tour. However, when they reached the parking lot, the visitor saw the sign mentioning the facility’s solar capabilities and became animated, stating he was surprised a rural Midwestern facility was using renewable energy. This led to the signing of a multi-million-dollar deal over the last few years.
- Financial benefits abound. From the Solar Investment Tax Credit (ITC) and accelerated depreciation opportunities to programs such as REAP and a wide range of state and local incentives that will drive down the cost of your project significantly and reduce your payback period, with some high-incentive projects paying for themselves in under two years.
- Protection from future rate hikes. When you gain a commercial solar power installation, you’re not only generating energy, but you’re protecting yourself from the 26.8% rate increase – three times over. That gives you significantly more capital to invest where you need it most in your business, allowing for expansion, mergers, and new-market entry.
- Reduced grid dependency potential. If your business has issues with power outages, commercial solar power with installed energy storage capability allows you to continue operations while the problem is fixed, improving productivity and efficiency while reducing costly downtime.
- Adding a commercial solar power system to your business not only saves money, but it makes your brand stand out from the competition. It makes a positive impression on stakeholders, employees, and the 79% of customers changing buying preferences based on environmental impact and similar factors.
- Lower operating costs. Once your short payback period has ended, you essentially have free power for approximately 30 years after installation. This provides you with a positive cash flow while protecting you from rate hikes.
If your business is in the exploration phase or considering a commercial solar investment, you may be wondering where to start the process. At APC Solar, our turnkey approach focuses on guiding businesses, institutions, and other large organizations to create a long-lasting, efficient, and well-installed commercial solar power array. We’ll work with you to find the right answers to your questions, including whether solar is the right option for your organization. Please feel free to reach out today with any questions, for more information, or to schedule a consultation with one of our experienced team members.
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