Embracing Solar Energy: a Bright Move for Your Business?

Want to slash your company’s running costs? Or perhaps lower your company’s carbon footprint? Maybe it’s time to look towards the sun.

That big ball of fire in the sky could be used to power your entire company’s operations, which could have huge benefits to everything from your profit margins to your reputation.

Of course, there are challenges to embracing solar power that need to be considered too. In this post, we’ll explore some of the biggest reasons businesses decide to go solar, as well as some of the potential obstacles and drawbacks.

Reasons for Your Business to Go Solar

Let’s start by considering some of the perks of installing solar panels...

Save Money on Your Energy Bills

The biggest reason to embrace solar power as a business is the cost savings. Energy bills can make up a significant part of a company’s overheads - especially in sectors like hospitality (5 to 10%) and manufacturing (10 to 30%).

By investing in enough solar panels, you can reduce reliance on mains energy suppliers and start generating free energy from the sun. Yes, there is the cost of solar panel installation to cover, but many companies are able to pay this off after several years. Solar panel repayments are also fixed unlike mains energy rates that are on the rise.

Stay Running in a Power Outage

Solar panels can also act as a backup energy supply in a power outage. When combined with commercial battery backup installation, you have the power to store energy harvested through your solar panels, allowing you to continue running your business day and night while power supply issues are fixed.

This is important for companies that need 24/7 power for data processors, refrigerators, medical equipment or safety/security systems.

Comply with Carbon Emissions Regulations

Some countries around the world have strict carbon emissions regulations in place that certain industries have to comply with. Installing solar panels can be a way of meeting these regulations.

Even if such regulations don’t apply, embracing solar power could allow your company to meet certain standards set by environmental agencies that could lead to green certificates or awards. This could be good for your own sense of pride as well as being good for your company’s reputation, which leads to the next big benefit...

Appeal to Eco-conscious Consumers

Eco-conscious consumers may be more inclined to do business with you if you actively embrace green methods such as using solar power. If you are a manufacturer, it could allow you to market your company as an eco-friendly alternative to other brands out there. Examples of companies that use this as a selling point include Evans Concrete, ABB Ltd, Apple and Tesla.

Many other businesses could similarly use going all-solar as a way to appeal to socially responsible customers including eco-hotels and sustainable farms.

Boost the Value of Your Property

If you own a commercial property, it could also be worth considering the value that could be added by installing solar panels. Some properties see their market value boosted by 5% - which can often make up for the cost of installation.

In real estate investment, installing solar panel systems can often be an effective way to increase the price tag of a property, along with other eco-renovations like insulation upgrades and installing more efficient HVAC.

Challenges of Your Business Going Solar

There could be potential issues with embracing solar energy that need to be considered first. Some of the biggest challenges are discussed below...

It’s a Big Financial Investment

Solar panels are not cheap to install. Expect to pay $1000+ per 400-watt panel (including installation and permits). If you want to go off-grid, this could mean installing a large array of panels. Some companies need 50 to 100 panels to achieve this.

You can pay off these panels in installments and once they are paid off, you won’t have to pay an energy bill again. However, it’s still a lot of money to pay before you start making a return on your investment. Local grants and discounts for businesses do exist, but they are becoming fewer and further in between.

Not All Properties and Locations May Be Suitable

Not all companies have commercial premises that are suitable for installing solar panels. The roof tends to be the best place for installing panels because it tends to get the most unobstructed sunlight - but some roofs are not strong enough to support panels, are too small or have shadows cast upon them by taller buildings.

Meanwhile, businesses in certain parts of the world may not get as much clear skies or may experience parts of the year with limited hours of sunlight. While solar panels can still generate electricity through clouds and can store energy in batteries to be used after dark, you could still find that you’re not getting as much out of them as you hoped.

Solar Panels Require Maintenance

Some people forget that solar panels require maintenance to keep them in good working order. They need to be occasionally cleaned and they can get damaged over time, which may require repairs.

Fortunately, this upkeep isn’t a lot and some solar installation warranties may cover cleaning and repairs, however this is something you need to confirm beforehand.

Should Your Business Embrace Solar Energy?

Going completely off-grid may not always be realistic, however embracing solar panels can still be beneficial for many businesses as a way of reducing some energy costs.

If you’re thinking of moving to new premises in the near future and do not own your current commercial property, then solar panels may be something to avoid, as you may not make your money back. Similarly, it’s not a good idea if you don’t think your business is going to survive the next few years.

Otherwise, it can be a reliable way to save money in the long run. Energy bills will likely continue to go up in the future, and even if they drop, you’re still making savings by getting some free energy from the sun. The positive impact it can have on your reputation is also important to consider if you are a business that wants to be considered green and it could be vital if you’re trying to comply with certain environmental standards.