Going Green: How Businesses Can Benefit from Solar Panel Installations

Dan Martin
02/07/2024

Going Green: How Businesses Can Benefit from Solar Panel Installations                             

In recent years, there has been a growing trend of businesses going green by investing in solar panel installations. Solar power is a clean and renewable energy source that can provide a range of benefits to businesses of all sizes. 

In this blog post, we will explore the advantages of commercial solar panels and how they can benefit businesses. Veteran-owned solar companies help by reducing energy costs to improve a company’s image, we will discuss the many reasons why going green with solar power is a smart move for businesses.

So let’s get started!

Solar Panels:  How Do They Work and How To Get Them Installed?

Solar energy is converted into electrical energy using solar panels, commonly referred to as photovoltaic (PV) panels, which use semiconducting components. An electrical current can be generated and utilized to power homes, companies, and other buildings when sunlight strikes a solar panel’s surface, exciting electrons in the material.

To provide clean and sustainable energy, solar panels for businesses and commercials have grown in popularity in recent years. Businesses are not an exception, and a lot of them are spending money on solar panel installations to cut their energy expenses, lessen their dependence on the grid, and show that they care about sustainability.

Commercial solar panels are specifically designed for use in commercial and industrial settings. They are larger and more durable than normal solar panels and are able to generate higher amounts of electricity to meet the energy needs of businesses, factories, and other large-scale operations. 

Solar energy companies can help install large-scale commercial solar panels on rooftops, parking lots, or even on the ground, and can help businesses reduce their energy costs, decrease their reliance on the grid, and reduce their carbon footprint.

How do Solar Panels Work?

Solar panels work by converting sunlight into electrical energy through a process known as the photovoltaic effect. The following is a step-by-step explanation of how solar panels work:

  1. Sunlight shines on the solar panel’s photovoltaic (PV) cells, which are made up of layers of silicon and other materials.
  2. When sunlight hits the PV cells, it excites electrons in the material, generating an electrical current.
  3. The electrical current generated by the PV cells is direct current (DC) electricity.
  4. The DC electricity is sent to an inverter, which converts it to alternating current (AC) electricity that can be used.
  5. The AC electricity is sent to a breaker panel, which distributes the electricity throughout the building to power lights and appliances.
  6. Any excess electricity generated by the solar panels can be sent back to the electrical grid or stored in a battery storage system for later use.

Installation Process of Solar Panels

To guarantee the secure and effective installation of a solar panel system, various measures must be taken throughout the solar panel installation process. Following are some key steps involved in the installation process:

  • Site assessment
  • Design and engineering
  • Permit acquisition
  • Solar panel installation
  • Connection to the grid or battery storage
  • Commissioning and testing
  • Monitoring and maintenance

Why Businesses Should Consider Going Green With Solar Panel Installations

Businesses should consider going green with solar panel installations because of the many benefits that solar energy can provide. Following are some of the key benefits:

1. Lower Energy Costs

Businesses may use solar panels in a number of ways to reduce their energy bills. The following are a few ways solar panels can contribute to reducing energy costs:

  • Generating electricity from the sun: Solar panels use the sun’s energy to produce electricity, allowing companies to generate their own power rather than relying on the grid. Overtime, this can considerably save energy expenses.
  • Net metering: The net metering is a billing system that enables companies to obtain credits for solar-panel surplus energy that is transferred back to the grid. When the solar panels aren’t producing enough electricity, these credits can be applied to energy bills as a partial offset.
  • Savings over the long term: Solar panels have a long lifespan of 25 to 30 years and require little upkeep. This implies that companies will see long-term energy bill reductions.
  • Protection against future energy price hikes: Although electricity costs can change over time, solar panels offer companies a set cost for their power for the course of the panels’ life. This offers protection from upcoming energy price increases.

2. Tax Incentives and Rebates

Businesses that install solar panel systems may be eligible for a range of tax incentives and rebates from the government. Here’s how businesses can benefit from these incentives:

  • Federal Investment Tax Credit (ITC): The ITC allows businesses to claim a tax credit worth 26% of the total cost of their solar panel system. This credit applies to both commercial and residential systems and can be used to offset federal income taxes.
  • Accelerated Depreciation: Under the Modified Accelerated Cost Recovery System (MACRS), businesses can depreciate the cost of their solar panel system over five years, providing additional tax savings.
  • State and Local Incentives: Many states and local governments offer additional incentives for businesses that install solar panels, such as rebates, tax credits, and grants.
  • Green Energy Certificates: Businesses that generate excess energy with their solar panel system may be able to sell Renewable Energy Credits (RECs) on the open market. These RECs represent the environmental benefits of generating clean energy and can provide an additional revenue stream for businesses.

3. Increased Property Value

A business property’s value may rise in a number of ways as a result of installing solar panels. Some of the ways that solar panels might increase the value of business properties are as follows:

  • Reduced energy expenses: Solar panels may help companies cut their energy bills, which may increase the appeal of a commercial property to potential renters or purchasers.
  • Marketing advantage: Commercial properties with solar panels can provide firms a marketing edge when trying to entice environmentally aware clients or renters.
  • Increased property value: Installing solar panels may raise the value of a business building by enhancing its sustainability and energy efficiency. A business property’s worth may rise by up to $20 for every $1 saved on yearly power bills, according to the National Renewable Energy Laboratory.
  • Commercial solar panels on a large scale: Large-scale solar panel systems, such as solar farms or community solar projects, can also benefit commercial buildings in other ways. By leasing land for the installation of solar panels or taking part in community solar programs, these initiatives may significantly increase the earnings for property owners.

4. Corporate Social Responsibility

Corporate Social Responsibility (CSR) is becoming increasingly important for businesses, as consumers and investors alike demand greater social and environmental responsibility. 

Here’s how going green with solar panel installations can improve a business’s image:

  • Demonstrating a commitment to sustainability: By installing solar panels, businesses can demonstrate a commitment to sustainability and reduce their carbon footprint. This can help enhance their reputation as a socially responsible business.
  • Attracting environmentally conscious customers: Consumers are increasingly making purchasing decisions based on a company’s environmental practices. By going green, businesses can attract environmentally conscious customers and build brand loyalty.
  • Enhancing employee morale: Employees are more likely to be engaged and loyal to companies that demonstrate a commitment to social and environmental responsibility. By going green, businesses can enhance employee morale and attract top talent.
  • Improved investor relations: Investors are increasingly looking for companies that demonstrate a commitment to sustainability and social responsibility. By going green, businesses can improve their investor relations and attract socially responsible investors.

5. Energy Independence

One of the benefits of solar panels for businesses is that they can provide a degree of energy independence. Here’s how solar panels can reduce a business’s reliance on the grid:

  • Generating electricity on-site: By generating electricity on-site, businesses can reduce their reliance on the grid and avoid the potential for power outages or disruptions.
  • Energy storage: Solar panels can be paired with energy storage systems, such as batteries, to store excess energy generated during the day for use at night or during peak demand periods. This can further reduce a business’s reliance on the grid.
  • Net metering: Net metering programs allow businesses to sell excess energy generated by their solar panels back to the grid, reducing their overall energy costs and increasing their energy independence.
  • Peak demand management: Businesses can use solar panels to manage peak demand periods, such as during the hottest summer months, by generating electricity during these periods and reducing their reliance on the grid.

6. Maintenance and Upkeep

Solar panels are a long-term investment, and proper maintenance and upkeep are essential to ensuring they continue to operate effectively and efficiently. Here’s what businesses need to know about maintaining their solar panels:

  • Regular maintenance: It is necessary to keep solar panels running as efficiently as possible. On the surface of the panels, dirt, dust, and debris can gather and lower their energy production. Businesses should refrain from using abrasive cleaners or water under high pressure while cleaning, and instead use a soft brush and mild soap.
  • Annual inspections: To make sure the wiring, mounting systems, and panels are in excellent shape, annual checks should be carried out. In order to stop future damage and make sure the panels continue to function properly, any damage or wear should be rectified as a way.
  • Monitoring performance: To make sure that solar panels are running as efficiently as possible, businesses should routinely check their performance. Any performance decline should be quickly looked into and fixed. Monitoring can be done manually or using automated methods.
  • Warranty and service agreements: Service contracts and warranties that cover maintenance and repairs are frequently included with solar panel systems. Businesses should make sure they comprehend the conditions of these contracts and have a strategy in place to handle any problems that may occur.

Conclusion

Solar panel installations are a terrific way for businesses to become green. Businesses may minimize their dependency on the grid, save money on energy bills, take advantage of tax breaks and rebates, boost property values, and improve their corporate social responsibility by installing solar panels.

However, companies must also be aware of the need for routine maintenance and upkeep if they want to guarantee the long-term usefulness and efficiency of solar panels. Businesses may significantly improve their bottom line while also having a positive influence on the environment by recognizing the advantages and maintaining their solar panel installations.

Dan Martin

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