The energy bills of your commercial building might be putting strain on your budget. And the unpredictable energy markets may make it challenging to forecast expenses. These issues necessitate the adoption of sustainable practices. 

Solar energy is an excellent solution to the rising electricity costs and environmental concerns. Generating your own energy reduces over-reliance on the often-expensive grid electricity. This saves you money and you can also earn some money back through incentives.

This article details the benefits of installing solar panels on your commercial buildings. It also discusses the factors that can affect your return on investment (ROI) and how to get started with solar power adoption. 

1. The Financial Benefits

Solar panels are an attractive investment for businesses. By the end of 2022, there were about 43,641 solar systems installed across New Zealand, which is less than 1% of the country’s total electricity consumption. So, there’s quite a lot to be done. The following are some advantages you’ll reap by using solar power:

Reduced Energy Bills

Given solar energy is freely available, installation of the panels implies immediate cost savings. Of course, the actual cost savings come after recouping the amounts you used to purchase and install the panels.

Predictable Energy Expenses

The energy market is often unpredictable, with electricity prices fluctuating dynamically with every dawn of the day. This makes it difficult to plan ahead. You may allot enough money to pay electricity bills based on previous usage but still fall short due to unforeseen hikes. But with solar power, this is a thing of the past.

Tax Credits and Incentives

The government encourages businesses to switch to solar power by offering tax credits and rebates. Out of the 270MW solar power generated in New Zealand, only 70MW comes from commercial and industrial installations. The bulk comes from residential buildings. Thus, the government is keen on incentivising businesses. These incentives considerably offset the initial cash outlay of installing the panels. And this makes the investment more financially sound.  

Increased Property Value

Installing solar panels on your commercial building automatically increases its value. Buyers, especially the eco-conscious ones, who are the majority today, highly desire such buildings, knowing how sustainable they are. Thus, if you decide to sell the building at some point in time, you’ll get more profits. 

2. Factors Affecting The ROI

Several factors influence the ROI of solar power projects, as outlined below:

• The size of your system
• Your location’s sunlight
• Current electricity rates
• Available incentives
• Financing options

Assess all these factors closely to accurately estimate your potential ROI.

Calculating Payback Period

The payback period is the time it takes for your energy savings to equal your investment at the beginning. At this point, your solar power project starts being more profitable than grid electricity. This period varies depending on the factors outlined above. While upfront costs can be high, you’re looking at maintenance-free service of between 20 and 30 years. 

Lifetime Savings

Solar panels typically last more than 25 years. Over this period, you can save quite a lot of cash. To estimate your lifetime savings, consider the expected electricity generation, future electricity prices, maintenance costs, and potential wearing out of the panels.

3. Assessing Your Building’s Sustainability

Before switching to solar, consider the following factors:

The Building

Things like your building’s roof type and angle determine how much solar power you can generate. The available space also determines how many panels you can install. If nearby trees or buildings cast a shadow on your building’s roof, the solar power generation potential will be reduced. 

Choosing the Right Solar Installer

It helps to work with an experienced solar power contractor. For instance, World Solar boasts over 20 years of experience. They’ll design the system knowledgeably to ensure maximum power generation. Apart from this, certifications and positive reviews should also be taken into account.

You may also want to compare warranties and maintenance agreements to ensure your installed system is kept in excellent condition for the rest of the years.

Financing Options

Because of the usually high initial capital outlay, you may want to seek alternative financing options if your savings don’t match the requirements. You can consider loans, leases, or power purchase agreements. Each of these has unique pros and cons. Weigh them carefully before settling on any given option.

Permissions and Interconnection

Governments and local authorities regulate the installation of solar panels in commercial premises. So, understand your jurisdiction’s specific requirements to ensure you’re on the right side of the law. 

Conclusion

Installing solar panels on commercial buildings is a smart way to cut energy costs and make your operations friendlier to the planet. If planned well, you can recover your invested amount in a few years and transition to lifetime savings.

Remember, solar technology is evolving fast. So, it helps to stay updated with the latest developments in the industry and upgrade your systems accordingly. Also, partner with a reliable solar contractor for expert guidance on what system will work for your business.