Updated 3/6/2024
It is no secret that solar energy can benefit businesses of all types – from small retail stores and offices to giant corporations, data centers, and warehouse facilities. Some of the largest companies in the U.S have installed solar on their properties and are making commitments to run on 100 percent renewable energy.
Solar energy is a great place to start if your business is looking to decarbonize its day-to-day operations to meet net zero goals. There are many advantages to adopting renewable energy. Let us explore the top 10 reasons why your business should adopt solar:
- Reduce electricity and operational expenses
Businesses can decrease their utility bills by installing solar. By generating their own clean electricity, businesses can significantly reduce their dependence on the traditional grid, leading to substantial savings. Additionally, certain states have enacted net metering laws whereby excess solar energy can be fed back to the grid in exchange for credits. Even without net metering, solar provides businesses with long-term financial stability and allows them to reallocate saved resources towards other areas of their operations.
- Increase property value
As real estate buyers become more educated about the advantages of solar, appraisers increasingly consider the value it adds to buildings by increasing energy efficiency. According to the American Association of Appraisers, buildings with solar PV arrays have a higher market value and a greater resale value. Businesses are always looking for ways to increase their assets, and solar is the perfect way to do it. Are you worried about higher values on your property tax bill? Solar energy is exempt from property tax assessments in many states.
- Take advantage of government benefits
Businesses can take advantage of federal and state government policies that reduce solar installation costs and the company’s corporate tax amount. For example, the Federal Solar Investment Tax Credit (ITC) allows businesses to receive a dollar-for-dollar reduction on their taxes. Additionally, many state governments have their own programs that add to renewable energy’s economic benefits and can further reduce the initial cost of installing solar. For non-profit organizations, public entities, and companies without taxable income, the benefits come in the form of a lower cost per kilowatt-hour through a power purchase agreement framework.
- Prove that your business follows market trends
Businesses of all types face growing pressure from their shareholders, customers, and employees to reduce their carbon footprint to mitigate climate change. Hence, having a decarbonization strategy for your business is no longer a differentiator – it is practically a market necessity. By installing solar, you can prove your commitment to customers through solar and other sustainability measures.
- Increase your budget certainty
Costs from utilities fluctuate significantly with the market. But by going solar, you are locking in 20 plus years of predictable electricity costs. In this way, solar stabilizes electricity costs over time by putting you in greater control of your overhead. As electricity rates rise, you can hedge against fluctuating energy costs.
- Reduce climate risk and its threat to businesses
Switching to renewable resources can help companies be resilient against fuel volatility, extreme weather events, and regulatory risks such as caps on carbon emissions. Solar can help businesses stay ahead of the curve and mitigate the climate-related risks and regulations that may impact them in the future.
- Cutting edge technology
By going solar, you’re adopting cutting edge technology and investing in the future. Solar technology has advanced tremendously over the years, simultaneously becoming more efficient, more accessible, and less expensive than ever before.
- Solar is low maintenance
Solar generation involves no moving parts, so solar arrays do not require routine maintenance beyond preventive care. This makes going solar easy to maintain over the long term. Many solar providers, including Pivot Energy, provide operations and maintenance to keep your mind at ease.
- Create local jobs
Going solar supports the creation of local jobs in your community, creating opportunities for installers, electricians, and project managers. The solar industry already employs well over 250,000 workers across the United States.
- Provide shade for your employees and customers
Solar parking canopies, or carports, can cover customer and employee parking spaces to keep them cool. Solar parking canopies generate electricity just like a rooftop solar array and connect to your building in a similar fashion. Plus, your employees and customers will benefit by having added protection from the elements – no matter the season.
Getting Started
Decarbonization strategies for businesses of all types should incorporate some form of solar energy generation. Beyond lowering utility costs, solar also increases property value, supports commitments to corporate sustainability, and reduces future risks to businesses.
The Pivot Energy team is ready to support your business in its renewable energy strategy. Reach out to speak with a member of our team.
