One of the most appealing reasons to deploy renewable energy systems is the cost savings that they offer. Transitioning to a commercial solar energy solution can help your business hedge against fluctuating nonrenewable energy costs while helping you achieve lasting energy independence.
You may be wondering what kind of cost and energy savings you can expect by adopting a solar energy system. f the fear of steep upfront costs has prevented you from exploring the possibility of a solar project before, commercial solar financing makes owning a solar energy system more practical than you may have originally thought. If you’re planning a solar upgrade, now’s the time to act because 2019 is the last year for several incentive programs, including the federal investment tax credit (ITC).
Long-Term Energy Savings
According to EnergySage, the average commercial property owner in the United States can expect to reduce overall energy expenses by up to 75% just by switching to solar. The average commercial property owner pays around $1,950 in monthly electric bills when using conventional energy sources. That number drops to about $500 after deploying a commercial solar system. At the same time, today’s commercial solar projects are built to last, so you can expect to enjoy what’s essentially a fixed electricity supply for anywhere from 25 to 35 years.
Funding Your Clean Energy Initiative
While the long-term energy savings are obvious, you’re probably concerned about initial capital expenses. Here are three of the most common ways businesses pay for their solar upgrade.
Purchase the System Outright
As always, you can pay for your solar upgrade upfront which is essentially like prepaying 20+ years of electricity bills. If you have the upfront capital, and you don’t want to have to worry about ongoing utility expenses, a cash purchase may be your best option. At the same time, if you ever decide to sell your building, you have a valuable asset that can attract a new market of potential buyers while adding lasting value to your building’s market price.
Finance Your Solar Energy System
You also have the option to finance your system through a credit lender. Frequently, the money you save on electricity each month offsets these monthly payments, so you can expect positive cash flow from day one.
Enter a Solar PPA
A solar power purchase agreement (PPA) gives your business access to renewable solar power at a fixed cost without requiring any initial investment. Your business partners with a solar provider who installs and maintains a solar energy system at your facility.
As part of the PPA, both parties agree on a fixed electric rate that you then pay, similar to a monthly utility bill. However, PPA electricity rates are usually substantially lower than conventional energy rates and are fixed to hedge against rising energy costs. At the end of the PPA term, you have the option to buy the system outright, continue the PPA on new terms, or let your solar partner dismantle the system.
Solar PPAs are an excellent option for businesses that are interested in exploring the possibility of solar energy but don’t want to absorb any risk.
Contact the Solar Experts Today
If you’re interested in getting a more concrete estimate of how much money your business can save by switching to solar, contact our team at Verogy today. We’ll work with you to clarify your options while helping you leverage financing options to start saving money from day one.