With a breakeven point between 3 and 6 years and up to 20% ROI, solar is a prudent investment for the business community. Reducing electric costs with solar means lower operating costs and increased cash flow. It also shows your customers that your company is committed to renewable energy.
A solar system typically continues to generate 80% of its rated capacity in year 30. Therefore, the utility savings over the system lifespan can be very significant. For example, a 10kW system produces approximately 12,500 kilowatt hours of electricity annually. If energy rates are $.10 per kilowatt, this amounts to $1,250 savings each year. If breakeven is 5 years, the energy cost savings over the next 25 years is $31,250 (30 years minus 5 year payback x $1,250).
Mitigate Rising Energy Costs
When considering the value a solar system could bring to your business, other factors to consider are the increasing electricity rates and variable rate structures. Historically, electric utility rates have risen around 3% per year nationally. Over 30 years, that can be a 90% increase in electricity costs.
Offset Time-of-Use Rates
Additionally, utilities are implementing demand charges and Time-of-Use Rates plans which can be mitigated with solar systems. Usually,Time-of-Use Rates charge a higher price for electricity during the daytime when demand on the grid is the highest. This is exactly when the solar system is maximizing production to offset grid usage. Solar creates a lower fixed price for electricity, allowing your business to accurately project future operating costs.
Federal and State Incentives
In addition to the Federal Tax Credit and the State of Illnois SREC incentive, businesses can take advantage of depreciation tax deduction benefits to lower the overall cost of a solar installation. See the Incentives and Rebate Programs page.
Take a look through our portfolio to see solar power systems we have designed and installed for businesses in your community: