A lot of businesses around the world are beginning to know more about renewable energy sources. Most of them see it as a great way to save more on energy costs. For this reason, many business establishments or commercial businesses are investing on commercial solar systems. Commercial solar system is one of the most cost-effective ways to power your business. Turning the power of the sun into electricity may dramatically reduce your business’ operating costs, thus, increasing your business’ revenue and net income. It also provide you with risk protection against future price increase of electricity, and gives you a chance to take advantage of the incentives that the government gives.
How It Works
To be able to convert sun’s energy into electricity, you need PV system components to work together to power your business. These are:
- Solar Panels that are installed on your business’ roof to convert sun’s power into DC power.
- Inverter to convert DC power into AC power to power your facility.
- Electrical Panels where AC power from the inverter travels to the electrical cabinet to be available for your facility’s electrical needs.
- Utility Meter to measure your electricity supply so that when your system generates energy more than what your facility needs, it automatically spins backward, causing it to accumulate credits with your electricity provider which will then reflect on your next month’s electricity bill.
- Utility Grid to ensure that you will remain connected to the grid to supply you with electricity whenever your system isn’t generating enough energy to power your business (i.e. at night).
- Energy Monitoring to monitor your facility’s electricity usage that could greatly help in managing your electricity consumption, thus, reducing your operating expense.
How Commercial Solar System Investment Pays-off
Since PV systems does not require fuel and could last even more than 25 years, more and more business owners desire to invest in this industry. Aside from the government incentives, it also provides the following benefits, making it more attractive to a lot of investors:
- a guaranteed return of investment (ROI) within just a few years
- stable energy costs and tax incentives
- guaranteed long-term power purchase agreement
- you may even draw more customers by letting them know that you’re a “green company”
How Much It Cost Commercial solar system costs will still depend on a number of factors such as:
- Size – one important factor that defines your cost; larger solar systems may even cost less per watt compared to smaller solar systems due to economies of scale.
- Installation complexity – mounting on racks, custom installations, or even just working around too many obstructions (i.e. HVAC equipment, pipes) are complex installations, making it more expensive than the usual.
- System production – tilting or installing your solar system where it can generate more energy (roof orientation) is a bit more expensive than just regular installation; however, generating more energy would still mean faster ROI on your part.
- Maintenance – although there shouldn’t be a problem with solar PVs since in terms of maintenance since there are no moving parts, you may still need an occasional cleaning of the PV modules, or inspection to prolong its life.
Commercial solar systems does not just offer lower electricity bills or long-term profit. Its accelerated depreciation, substantial incentives, and financing options (for companies) make commercial solar system a very smart investment however big or small your business is.