Did you know that 59% of people that choose to switch to solar panels did so with the motivation to save money? For some people, spending too much money on electricity seems like a waste. However, solar panels present a cost-saving option, although what really is included in solar ROI?
Don’t worry; with this guide, you can find out! From understanding the factors that affect the final calculation to how you can do it yourself, you’ll save money in no time with these easy tips.
Now, are you ready to dive in? Here’s an in-depth look at solar panel ROI:
The Factors that Affect Solar ROI
Think of your solar panels not just as a purchase but as a financial investment. Although, those annual returns come after you pay off your solar panel purchase. Most people pay it off in about seven to eight years for their residence where a solar system on your business ROI is 3-5 years and enjoy the remainder of their solar panel lifespan, receiving free electricity for decades to come.
To calculate your yearly returns, simply divide each financial benefit you receive by your initial purchase price. However, numerous factors affect your solar ROI, including:
Calculate your recent electricity bills to see how much you’re paying. This can overtime determine the savings of your solar panels. The higher your bills are, the more you can save with solar energy.
Before purchasing a solar panel, did you compare prices? If so, were you able to use tax credits or rebates to lower the price? A solar panel that costs less will have a shorter payback period.
Determine if they’re any local or state rebates or federal tax programs that encourage solar usage. In fact, if you’re a business organization, you can take advantage of the benefits that are offered to you. After all, higher incentives produce lower upfront costs and even include a shorter payback period.
Did you purchase the most efficient solar panels? For example, does it produce electricity at an ideal level? An effective system will cancel out a larger percentage of your monthly bill.
Calculate how much your property has increased since installing solar panels. By owning a solar panel system, resale value usually increases; however, if you’re leasing, sometimes property value won’t be increased.
Calculate how much more profits you’re able to save due to your lower-cost solar panels. In addition, determine what the exact value of your solar panel is. These factors will help you gauge your final ROI.
Final Solar Panel Payback
If you consider the above factors, you can get a good estimate on when your solar panel payback period will be. Your solar payback period is one of the best ways to put an exact number on your solar ROI.
After all, the solar payback period is the time it will take you to earn the money you spent on the solar panels. For instance, if your payback period is around eight years, after that time, you can start calculating your actual solar panel ROI just by looking at electricity rates and your electricity usage.
Calculate Your Solar Panel ROI Today
Finding your solar panel ROI can seem challenging. However, if you keep in mind all the factors that contribute to the payback period, you’ll be able to calculate your solar panel ROI easily and efficiently.
If you’re interested in calculating your solar ROI, contact us today. We look forward to helping you!
Looking for a better way to power your house? Go solar. Rooftop solar panels convert sunlight into electricity for your home, eliminating or drastically reducing your monthly electric bill. Solar panels are not the right fit for everyone, but for many they’re a great green way to reduce your carbon footprint.
Solar panels are an investment, but you can recoup the initial cost – and more – in the years to come.
Going off the energy grid is becoming an increasingly popular option, with about 600,000 U.S. homeowners enjoying solar panel energy, according to the Solar Energy Industries Association (SEIA), and many more solar systems operating world-wide.
You can feel good about helping this planet move toward sustainable energy sources. Nonrenewable energy-produced electricity sources pollute the earth, but solar energy ensures clean, renewable energy.
Because solar panels have become more popular and technologically advanced, the manufacturing price has dropped, so it’s not just for wealthy homeowners anymore.
Is solar energy the right choice for you? Consider things like your home’s location, how long you’ll remain in your home, whether you want to own or lease your panels, your present electric bill, and financial incentives that may be available.
What are Solar Panels and How Do They Work?
Solar panels are made from tempered glass. They’re installed on a rack system on your roof and an inverter system generates electricity for your home, potentially eliminating dependence on your local electricity company. Your system may include a bi-directional meter that measures the power produced and the amount you use. You may be able to sell any excess power if your local electric company participates.
The system’s monitoring system lets you see the amount of energy your panels produce daily (and over time) and also notifies you if there’s a problem with a panel.
Pros of Solar Panels
There are a plethora of reasons to go solar, including reducing your carbon footprint and saving money. Many countries rely on fossil-fuel-produced energy, including coal and fuel. Producing electricity from those fuels is expensive. So is the cost of building new nuclear-powered plants. Those increasing costs are passed on to you.
Solar Saves Money
If you dread paying your massive monthly electricity bill, solar is definitely an option. Solar could drastically reduce your dependency on your present electric supplier. Installing a solar-powered electric system now could mean your future electric bills could shrink, especially once you’re no longer paying for the cost of the panel system.
You may even be able to make some money from your solar panels. Check with your government and your electric company to see if they have a buy-back energy metering program and solar renewable energy credits. These kinds of programs let you bank money (or receive credit on your electric bill) while your system generates electricity. You could be paid for extra electricity your panels produce.
Low Maintenance Costs
Solar rooftop panels require little maintenance, especially if they’re tilted. They may need a light cleaning every few months to remove dirt, leaves and other debris using a leaf blower or garden hose, and you may also need to clear panels after a heavy snowfall. Panels installed on the ground are even easier to keep clean because they’re on your level.
Solar panels are sturdy so they can weather storms and even hail, but you’ll still want to have a warranty or homeowner’s insurance in case you need to repair or replace any storm-damaged panels.
Reduce your Carbon Footprint
Solar energy is clean and renewable, the perfect way to reduce the atmosphere-damaging carbon dioxide emissions coming from your property. Producing solar electricity doesn’t create pollutants and is even more earth-friendly than nuclear energy.
Your choice to transition your home to solar energy also helps lessen the need for – and the dependency on – fossil fuels.
There are some things to consider before you jump on the solar bandwagon. For instance, how long do you plan to stay in your home ? How long will the panels last, and how much should you budget for buying or leasing?
Solar energy isn’t a get-reimbursed-quickly system. Instead, it’s a long-term investment so consider how long you’ll live in your home. It could take seven or more years for you to recoup the purchase cost through energy savings.
Another thing to consider is the condition of your present roof. You’ll have to remove the panels and put them back when you replace shingles on your roof. Therefore, if you’re considering getting panels, take a good look at your roof. If it has seen better days, you may want to replace it before you install solar panels.
How Long do Panels Last?
Panels are made to give you years of dependable electric service and can last from 25 to 35 years. You can enjoy energy-saving benefits for quite a while before you need to replace them.
Look for a professional company to install your panels. The cost of both panels and installation vary according to your system, region and the location of the panels (on a roof or on the ground).
Can Your Roof Hold Solar Panels?
Before signing up, do some homework on your own roof’s age and materials. Installing solar panels consists of mounting a connected racking system directly onto your roof, and not all roofs are suitable. Roofs on homes that are historical (or are older), those with slate or cedar tile roofs, or homes with skylights or roof decks are difficult to fit with racking systems. There could also be concerns with roof leaks because the racking is screwed directly onto your roof.
If your roof isn’t a candidate for panels but you have the room in your yard, you can have panels installed on the ground. If neither of those locations is an option, you can research whether there’s a local community “solar garden” that you can participate in.
Climate and Weather
The amount of sun that hits your roof and its orientation to the sun can impact how much energy your solar panel system generates each day. The more sun (and less shade) your roof has, the more energy those panels can produce. This is great news for homeowners in high-sun regions.
Solar panels can lose a small amount of their efficiency in climates whose heat rises above about 90 degrees, though. You can keep track of how weather affects your panels through the monitoring panel.
Don’t Forget Insurance
Installing solar panels on your roof may increase – or decrease – the cost of your homeowner’s insurance. This is something to discuss with your insurance company before you have panels secured onto your roof.
Cost of Solar Panels
The cost of installing solar panels will depend upon the location, the number of panels, the size of the system and other factors. Remember that the more electricity you normally use, the sooner you can recoup your investment by going solar. If you know your current energy usage, you can calculate how much you’ll need to budget monthly for solar panels.
Leasing vs. Buying
There are a couple of ways to start taking advantage of this earth-friendly “off the grid” energy source: you can buy your solar panel system outright or you can lease it. Both ways have pros and cons.
Some homeowners choose to lease their solar electric systems. Leasing lets you go solar without the big up-front costs. If you don’t have thousands of dollars for a down payment, you can lease while still helping the environment and lowering your electrical bills some.
Leasing lets you install solar panels and start saving right away. You may have numerous finance options when leasing. For instance, you can pay the leasing company for the equipment and use as much energy as you want, or you can pay the solar company based on monthly kilowatt hours used. Some leasing companies also offer the option of buying the panel system at the end of your lease. Financing and leasing options will vary depending on where you live.
Another advantage to leasing solar panels: you won’t have to fix them if there’s an issue. The company you lease them from should do the maintenance and repairs, depending on the terms of your lease.
Down Sides to Leasing
While there are definite pluses to leasing your solar electric system, there also are some drawbacks to ponder.
Solar leasing contracts can last up to 20 years or longer. Also, you probably won’t get any tax benefits or rebates (if wherever you reside offers those) by leasing versus owning. In addition, you’re locked into having equipment on your roof that belongs to a company, not you.
All in all, you still should save money by leasing while doing your part for the planet.
Advantages of Owning
There are definite advantages to owning your solar panel system rather than leasing. One of the biggest pluses is that many governments or electric companies offer incentives for installing this green energy source.
Owning your own system also means you’re not tied to a years-long contract. You own the panels instead of someone else owning the panels. Also, if you decide to sell your home, having a solar energy system can be a great selling point and increase the home’s value.
Disadvantages of Owning
There are some negatives to buying your own system. The most obvious disadvantage is the up-front investment required. If you buy, it may take some years before you break even, depending on how much your electricity bill is now. If you normally don’t have a hefty bill, it will take longer to recoup your costs. If your normal electricity bills are high it could be less time, depending on the cost of your system.
If you own your solar panels and monitoring system, you’ll be responsible for maintaining and repairing (or replacing) when parts fail or need work.
Solar is the Future
Installing solar panels is an enticing, Earth-friendly option, but it’s wise to consider all factors before taking the plunge. Solar energy system installation and material costs are decreasing as technology and production methods improve, so it’s becoming an appealing alternative to expensive electricity. It is definitely an investment, but worth adding value to your home as you help make this a greener planet.
In today’s environment, there are many ways homeowners can reduce their waste and energy use. Whether it be from planting a garden, composting, or reusing items that were previously recycled, the opportunities are endless. And, if you live in a hot climate that receives a considerable amount of sunlight – like Phoenix, Arizona or Miami, Florida – maybe switching to solar power might be the right option for you. We asked experts from across the country to share their tips on how homeowners can reduce their carbon footprint and live a more sustainable life.
Avoid cleaning products with harmful chemicals
Consider using EPA Safer Choice certified green cleaning products that are biodegradable and non-toxic. These products will not only deep clean your laundry but they will also remove residue you didn’t know was there. This will help you create a healthier home by reducing airborne chemicals and keeping your washing machine clean to keep it running long into the future! – Charlie’s Soap
Reduce the amount of food you throw away
We throw away about 40 percent of our food in the US – food that was grown with water, fossil fuels, money, and labor – and this food waste turns into a major greenhouse gas in landfills, known as methane. To help preserve the environment and reduce food waste, store your food properly, keep your fridge clutter-free, freeze excess food, and compost food scraps. – No Trace
Opt for green products
Green products are surprisingly powerful and can yield the same results as traditional harmful products if used properly. Not using products properly is by far the biggest mistake people make when using green products, so be sure to follow the instructions on the label. Homeowners love using them as a way to protect themselves, their children, and their pets from health risks that are associated with prolonged exposure to traditional harmful products. – Modern Maids
Invest in solar energy for your home
Installing a solar system on your home allows you to harness the power of the sun and produce your own clean energy, moving away from the dependence on fossil fuels and reducing electric cost at the same time. – REP Solar
The Earth’s atmosphere is exponentially increasing in carbon dioxide levels, so now may be the best time ever to invest in renewable solar energy. Going solar has been proven to reduce your carbon footprint, and is an investment that will pay itself back over time. Now is the perfect opportunity for everyone to make an impact by saving our planet. – Altair Solar
Re-purpose containers you would otherwise toss out
Instead of tossing food containers – which may not actually end up being recycled – keep a small collection that can be repurposed. For example, a jar of spaghetti sauce can be used to hold pens or small tools, as drinking glasses, to store leftovers, or to keep hair ties. Even if you have a small space, find a shelf where you can store containers in a (reused) cardboard box and grab one the next time instead of purchasing a new container. – Bev Goes Green
Make small changes in the kitchen and bathroom
Keeping a waste-free home can be difficult, but a few simple, low-cost changes can lessen your home’s environmental impact dramatically. Consider the two most wasteful rooms in your home, the kitchen and the bathroom. Try swapping plastic straws for reusable straws in the kitchen, and why not invest in a safety razor for your bathroom. – Jungle Straws
Grow your own food in your backyard
Having a backyard garden can reduce your carbon footprint substantially. When you grow your own food it takes less resources to grow and to make its way to your table. But one of the ways we have reduced our resource use even further is by installing a rainwater barrel to water our garden. It was super simple to install ourselves in an afternoon and now we save 200 or more gallons of water every month. – Sustainably Shelbi
Discover new ways to live a sustainable lifestyle
Separating and composting your food scraps can be the first step into a world of sustainability. When you begin to separate your waste into three categories–compost, recycling, and landfill, you become more mindful about what is in all three categories. Then you can go about discovering what you’re actually wasting and how you could shop or eat differently to reduce. Reduce, reuse, recycle-it’s a hierarchy! – Collective Resource
Make fertilizers for your garden
Limit your food waste by creating nutrient-rich fertilizers that your indoor and outdoor garden will love. Bananas are full of potassium, coffee grinds are full of nitrogen, and fish bones (if processed properly) are chock full of phosphorus. – Food Cycle Science
Design an edible landscape
Homeowners can help preserve the environment by implementing edible landscapes into their property. Work with a landscape designer to create a landscape with plants that offer both aesthetic and sustainable nutrition, like a lemon tree for example. – Prana Nutrition
Use a solid-state hard drive
Consider upgrading your older laptop or computer instead of buying a new one by replacing the hard drive with a solid-state drive. You will notice your laptop running much faster, adding years to its life. – High Tech Recycling
Wash your clothes in cold water rather than hot water
Homeowners can easily reduce their demand for energy by changing their laundry practices. For example, consider washing all your laundry with cold water. GE Appliances estimates that 75 to 90 percent of all the energy your washer uses goes to warming up the water. By switching to cooler water less energy is used and this can result in a lower bill for you! It’s a win, win for the homeowner and the planet. –The Honest Consumer
Introduce more vegetables into your home
Homeowners can help preserve the environment by trying to lead a more conscious lifestyle, ditching things they don’t really need to make more space for the things that make them happier and healthier. One practical way to apply this is to decrease your meat consumption and eat more vegetables, which will help you feel better, live longer, and reduce your amount of greenhouse gas emissions. –Simple Vegan
Eat more veggies! The vegan lifestyle has the smallest footprint on the environment, as far as land use, water consumption, and greenhouse gas emissions. Plus, your health will benefit from it, too. – Better Vegan
Add a solar awning if your roof is too small
Is your roof is too small to get enough electric power from solar? Try adding a purpose-built solar awning facing south underneath your roof eave all along the side of your house. This would also give a little shade and shelter from the rain as you enter your door. – Harvest Sun Solar
Incorporate automation to reduce your carbon footprint
Installing automation technology provides an easy way for homeowners to monitor their device usage, which can save you money and wasted energy, and also reduce your carbon footprint. We’re working on a system that can anticipate people’s needs based on how they interact with their home’s devices and take actions proactively to help before you realize you need assistance. –Josh.ai
Are Solar Panels Right for My Commercial Property?
If you own a commercial property, you are likely always on the lookout for efficient ways to save money. Businesses are electing to install solar panels more and more frequently, but most commercial property owners find the process overwhelming.
It might be difficult to figure out whether solar panels are right for your property. Furthermore, with so many types of panels available, it is tough to know which to choose and how to finance them.
The first questions to ask yourself as a commercial property owner are:
• Does your area get enough sun for solar energy?
• Do you have an open area on your roof or on the ground where solar panels can be installed?
• Is your roof in good condition and capable of handling the extra weight of solar panels?
• Do you have someone who can oversee the installation and maintenance of solar panels for you?
In Southern California, we are quite lucky to have year-round sunshine and relatively steady weather patterns. This environment makes most businesses and properties perfect candidates for solar panel installation.
Most reputable solar companies will continue maintenance and troubleshooting long after they help you select, purchase, and install solar panels. This means that having a dedicated contact to help facilitate maintenance calls is important. You may also want to have your roof inspected beforehand, keeping solar power installation in mind.
It’s no secret that solar power will save you money. Not only does solar power lead to reduced operating costs, but it also allows you to lock in energy costs for many years to come. A fixed energy price will enable you to more accurately predict billing, cash flows, and much more.
On another note, solar power might make you attractive to customers and clients who are environmentally-minded. Green branding and marketing are wins for you, as it allows you to showcase your dedication to reducing greenhouse emissions and pollution, and it actually helps your company make a positive impact that you can feel good about.
How Do I Choose the Right Solar Panel Installer?
Choosing the right company to install your solar panels is the trickiest part of the process. Research companies thoroughly, and never be afraid to ask questions, request pricing up front, and establish clear lines of communication. A good solar company will address your needs as a commercial property owner and will suggest panels that will work for you and your budget.
The next round of questions to ask yourself – and to ask the solar companies you are considering – are:
• Should I lease, buy, or obtain a loan for solar panels?
• Are there any government incentive programs that I can take advantage of once my panels are installed?
• What are the top solar panel brands, and is it important for me to insist on these top brands?
• How hands-on do I plan to be during this process?
• Will my solar panels require special configurations?
Once you have laid out the budget and the basics, consider how you will pay for your panels. Some solar companies will assist you in finding a loan, and larger companies may carry several leasing options that you can consider. Also, research incentive programs for commercial properties that utilize solar energy – and be sure to ask solar companies whether they can help guide you through the process of navigating and applying for incentives once the installation is complete.
Some solar companies advertise well known, top quality solar panel brands, while others prefer assisting customers on a case-by-case basis. If you have a particular brand in mind, make sure to let companies know.
Additionally, you can be as involved (or uninvolved) in the solar panel installation and maintenance process as you would like to be. Some solar companies, particularly larger ones, have no issue with allowing commercial property owners being incredibly involved – or absent during the process. If your property requires a special configuration such as a heavily sloped roof or significant shade concerns, that could impact your involvement in the process from start to finish.
What Should I Do Once I Have Made My Decision?
Once you have considered solar panel installation, brands, types, and everything that we have laid out above, you can begin narrowing down solar companies. The Renewable Energy Partners team is dedicated to providing cost-effective solar panel solutions to businesses, organizations, and other commercial properties throughout Southern California. We would love to be your full-service solar company. Give Renewable Energy Partners a call today to learn more about how we can help you: 855-519-6633, or visit our site: https://renewepi.com/.
In the solar world, the term “storage” has become something of a buzzword in recent years. But, given the proximity of the holidays (and a higher likelihood of power or electrical loss), it’s an especially good time to familiarize oneself with the concept. We’ll do our best to summarize what you need to know in a broader sense. You can break down the term into three typical applications in regards to solar energy – the first is off-grid (a system fundamentally dependent on battery use and function), the second is grid-tied with battery backup (where the batteries supply power to the inverter when a critical loads panel needs to be energized), and the last is consumptive storage (which involves no Net Metering and the power company crediting you on a one-for-one kWh basis).
Now, load testing has indicated that Absorbent Glass Mat battery systems, or AGM for short, have particularly impressive longevity – after 8 years, they show almost no signs of degradation. And DEKA engineers have since confirmed the trend behind this data.
A consumptive storage system might sound like a reliable practice to implement, but it comes with certain drawbacks. The problem therein falls to processing power – this particular configuration requires batteries with high processing power that can ensure several cycles of charges and discharges (or cycles). What’s more, if the batteries are fully charged and the house loads are met, you risk losing the excess solar production. This is because house loads are first serviced by the solar array, and only then diverted to battery storage. So, if an array output shouldn’t meet house loads for whatever reason, the batteries would deliver power to the house. According to recent shifts, it looks like this method might be the fallback for regions without Net Metering – but, regardless of your reason for opting for it, you should consider these factors at great length.
If given the choice, we recommend a grid-tied, battery backup (or bi-modal) system. It’s also emerged as the more popular option and we’ve personally installed several within the Corona area and beyond. According to a recent study, the controlled load testing of an almost 8-year-old Absorbent Glass Mat (AGM) battery system revealed little to no degradation in the battery bank. Various DEKA engineers have even attested to this trend. According to their findings and the general consensus, these types of systems should last for at least 10 years, on average. What’s more – they’re reliable in the event of a grid power loss, specifically when paired with an auxiliary generator system. That particular combination is estimated to potentially provide for months of electrical service, which is especially handy during the unforeseen loss of grid power or gaps in coverage.
However, we understand that muddling through all the data on your own can be overwhelming. So, it can be prudent to consult a professional for more information or clarification – call and speak with one of our many solar experts about our best suggestion for your battery storage.
Variable by utility territory, customer class, system size, installation, and performance factors, solar initiative rebates fluctuate across the board, according to your specific circumstances. Based on the number of solar megawatts, they automatically decline in a series of ‘steps.’ All in all, though, rebates are expected to steadily decline over time. Broken down into two incentive paths – expected performance based buydown and performance-based incentive, both are projected to potentially yield considerable consumer profit.
The California Solar Initiative Program, or CSI for short, pays solar consumers an incentive according to the performance of their systems. These incentives can either consist of an upfront lump-sum payment assessing expected performance, or be carried out in the form of monthly performance in relation to actual performance over the course of 5 years. The first option comprises the Expected Performance-Based Buydown, or EPBB, and is usually reserved for smaller systems. This projected value is formulated by an EPBB calculator across multiple design factors, including the azimuth, location, tilt, PV module and mounting type of a specific system. Given the amount of data that has to be analyzed, larger processing systems aren’t as feasible for this method of incentive calculation.
So, the Performance-Based Incentive, or the PBI, is conversely administered as a fixed dollar amount per kilowatt-hour. Upon its inception, unlike its counterpart, the PBI was required for systems exceeding 100kW. However, as of January 2008, PBI is only mandated for systems greater than 30kW. Therefore, this alternative was created with the business model in mind, perfect for larger-scale commercial ventures – whereas, the EPBB caters more to residential and smaller business needs. While lucrative in both forms, Renewable Energy Partners strongly urges all consumers to look more into criteria for each option – the benefits could be well worth your while.
Not sure which could apply to you? Want to add solar to your energy portfolio? Want to make a difference in the environment while positively impacting your bottom line? Pick up your phone and call Renewable Energy Partners, Inc. at 855-519-6633 Ext. 1001 and Start Saving. Or use our convenient Contact form.
From their inception, solar systems have pushed the boundaries of the clean energy world. Regarded as the highest form of power in its pure state, solar energy is incredibly versatile, capable of being converted into several different channels for everyday use. Though it initially started as an alternative source of electric power, it’s since evolved to fulfill our heating, cooling, transportation, water heating, cooking, industrial processing, and fuel production needs.
One of the biggest challenges scientists have faced throughout its use is the limited availability of solar energy – you can only harness sunlight effectively during the daytime, weather permitting. However, there have been some innovative workarounds, like batteries, pumped hydro, thermal energy storage, compressed air, and more. But, even with such rapid progress, researchers continue to strive for increasingly more innovative uses and implementations. Current goals center around increasing the overall efficiency of conversion, from both an energy and economic perspective. A group of ambitious semiconductor researchers in France has already made significant strides here, formulating a resources boron nitride separation layer to replace the original sapphire substrate material that composed solar cells.
This switchout could mean a more effective photovoltaic system, potentially working to capture a broader spectrum of light. These monolayers of boron nitride are carefully placed on two-inch sapphire wafers with a glass backing. The unique layering also means longer wavelengths will be filtered out, optimizing the collection of short wavelengths. And what’s more, the substitution in material does not come at the expense of durability – as various field experiments indicate the new panels aren’t any more susceptible to breakage or cracking than conventional models. The revised model can also withstand up to 1300 degrees Celcius in temperature. Scientists remain hopeful that mass production under this method is very much within the realm of possibility.
All in all, these findings suggest considerable advancements in the manufacturing of solar cells in bulk, potentially meaning lower costs for commercial solar use. This fact alone represents a serious incentivization for more companies to implement solar systems, which could mean popularized transition over to solar on the whole. While a lot of the aforementioned goals are still ongoing, they remain attainable and within reach.
Most people will agree that solar energy produces countless benefits – from conserving the environment innovatively to saving companies considerable utility costs over time. However, realistically, the transition to solar can be difficult or even infeasible for certain individuals, like tenants renting a property or residents of an apartment complex. That’s why community solar projects – also known as solar gardens or shared renewable energy plants – have been gaining serious heat and traction. This elegant solution allows the larger community to reap the rewards of going solar, while simultaneously eliminating financial deterrents, property and size restrictions. It offers a more effective method for sustaining this kind of energy model longer-term in a way that directly impacts more people.
Community solar projects can be broken down into two available formats: ownership and subscription. The ownership model gives participants an opportunity to physically possess part of the communal solar system, whereas subscribers pay a reduced rate to access power generated from the community solar farm. While owners have more say in managing shares, subscribers enjoy more flexibility. Not to mention, most ‘subscription’-based projects don’t entail any fees upfront to join and immediately result in savings. This arrangement gets rid of risks while boosting your gains right off the bat. You’re granted an easy, no-strings-attached entry and exit from the agreement. However, unlike subscribers, owners are afforded the option of purchasing up-front or through a loan and can exceed the annual electricity usage allowance in shares.
Solar gardens can yield significant financial savings and potential incentives for all parties involved. These are in large part because of Virtual Net Metering, or VNM for short. Essentially, under this structure, solar systems are installed externally and shared as billable credits amongst multiple subscribers. As a result, a household and businesses can still receive Net Metering credits linked to a specific renewable energy project, without directly overseeing its implementation. Experts estimate that participants’ power bills will be reduced on a one-for-one basis for every kilowatt-hour or unit of electricity the community solar farm produces.
Additionally, there may be some tax incentives involved with solar gardens. For instance, communities that don’t generate enough tax to qualify for a tax credit could benefit from Federal Investment Tax Credit or ITC. As a result, the cost of installation could be lower for owners, potentially making any solar PV system-generated energy more affordable to subscribers as well. To learn more about solar gardens and how to participate in your own, visit Renewable Energy Partners online at https://renewepi.com/
It’s no secret that the commercial market is extremely competitive – so anything that gives your business an edge over others should be welcomed with open arms. That’s why several large corporations have made the cost-effective decision to go solar – and quite a few more small and medium-sized companies are following suit. As this change to renewable energy gains traction and popularity, numerous practices are being put into place to make it a more viable and universally affordable option.
Solar energy is all about the return investment – although initial costs might seem steep, they’re designed to pay off in the long run. It’s estimated that businesses typically pay off their solar panel purchase and installation fees in roughly three to five years, on average. Afterward, they get the benefit of enjoying free electric supply for the duration of their solar system. According to a recent report published by EnergySage, the average commercial property owner should save about 75 percent in overall energy costs. Given rising utility prices, this comes as no surprise.
The power purchase agreement, or PPA for short, represents a more consistently priced financing option, which means no longer relying on erratic power fluctuations and unforeseen outages. According to a standard PPA, the solar provider makes a preestablished agreement with the customer to supply energy at a fixed rate for an extended period of time, say 15-20 years. This plan particularly benefits non-profits, allowing them to harness long-term energy savings. What’s more, it allows these kinds of institutions to rebrand themselves as more progressive, environmentally conscientious, and renewable – all qualities that potentially attract a broader base of prospective clientele.
Owners of newly installed solar systems are eligible to receive a federal tax credit equivalent to 30% of all solar system costs. So, all in all, implementing a solar system could financially incentivize your business, producing more than enough savings to outweigh conventional power methods.
The REP Solar management team has over 100 years of combined experience in electrical construction, engineering, including business management and construction real estate financing. REP Solar stays focused on clients needs by listening carefully to their needs then using our core strengths to exceed expectations. To learn more, contact Renewable Energy Partners at 1-855-519-6633 ext. 1001 or use our Contact form located at https://renewepi.com/contact/
Most business owners will agree that sustaining a successful enterprise often involves juggling several moving components – but underlining those are your energy needs, literally fueling all other commercial decisions. When you consider installing solar panels, the benefits not only serve your institution but the larger environment by extension. Although initial installation expenses might seem costly, they are worth budgeting for – solar power will significantly reduce your business’s carbon footprint and utility bills in the long-run.
Electricity expenses are continually rising. With solar, your business can enjoy a more reliable source of energy by relying on the sun’s energy. As a result, you can predict your monthly expenditure on power costs with more precision and consistency, painting your business in a more progressive light. Plus, with the many advances in design and overall aesthetic, solar panels may make your business even more attractive from the outside in. Along those lines, going solar signifies the ultimate investment, generating considerable long-term savings to your business’s bottom line.
In fact, solar energy costs are lower than they’ve ever been – the Solar Energy Industries Association observed a 30% drop in the average price of a commercial solar PV project between 2013 and 2015, with further reductions since and more expected markdowns coming soon. Additionally, government incentives like accelerated depreciation and tax credits may further incentivize this venture. So, now that we’ve established the clear advantages of going commercially solar, what are the options?
Good question – while whichever choice your business undertakes strongly depends on your present finances and specific goals, there are five basic avenues currently in place and all offer ownership options, if structured properly, at the end of term even for Lease & PPA. The Cash Purchase and Loan option best allow businesses to maximize big tax credits. Conversely, an Operating Lease can allow you to pay in installments, lending itself to lower up-front costs and a shorter time frame. A Power Purchase Agreement might be better suited for the non-profit organization, involving a third party financer who charges the business-in-question a lowered rate for usage. A Property Assessed Clean Energy plan, or PACE plan for short, permit local governments to finance the upfront costs, while the business itself recompensates said inter-judicial authorities via a property tax assessment. Lastly, select businesses earn Solar Renewable Energy Credits in certain areas, usually converting them to cash upon payment. While the paths to going solar are diverse and accommodating, businesses should first account for their unique financial circumstances – that’s the sure-fire way to inform all subsequent choices. Happy solar-hunting.