“I’d put my money on the sun and solar energy.” – Thomas Edison
While considered to be an extraordinary visionary, Edison was onto what has evolved to be a viable power source and the future of renewable energy worldwide. With the cost of energy usage on the rise, more business owners than ever have begun to approach alternative methods for generating power through renewable energy sources—particularly solar power.
Looking back at the history of solar power, many of us recall its popularity in the 1970’s. Since then, there have been significant advances in technology that have propelled it to one of the most viable renewable energy resources due to its practical applications for both commercial and residential use. As technology has driven performance up by 50%, the up-front cost of solar panels has also decreased by 75% from what it was in the 1970’s. This is a big win for businesses either way you look at it, as key factors in owning and operating a successful business are increasing efficiency and controlling cost. Longevity of solar systems are also notable, as today they come with a 25 year warranty in addition to the compounded payoff of the savings from reduced energy bills over time.
The growth of the solar power industry–which is projected to supply the world with most of its electricity needs by 2060 according to a report by the International Energy Agency (IEA)–largely factors into the rapidly decreasing costs, in addition to technology improvements and policies being established to promote research, development, and installation of solar including support from various grants, incentives and rebate programs that are currently available to business owners.
Three cost drivers are looming in 2016 that will make investment in solar even more appealing from a financial standpoint: an increase in interest rates, an increase in electric generation costs, and a projected increase of taxes applied to electric bills. No other energy source compares to the energy potential of the sun, and compared to its other renewable energy counterparts, it’s the only source to have a recoverable reserve per year as opposed to in total over the lifetime of the system.
What I find is that every business we work with, from farm operations to offices and establishments of all sizes, has a different need on the timing of the savings. The key here is that they all have substantial savings to work with. I’ve worked in renewable energy for over 20 years. In that time, I’ve seen favorable figures for what year to take what deduction along with scheduled depreciation strategies for maximum cost savings.
Obtaining an energy analysis and finding out all the other business-specific information about switching to solar is as easy as contacting me or one of our SolarCon renewable energy specialists at (402) 934-7336 or via email at firstname.lastname@example.org.
So how long will it generally take a business to see the payback from an investment in a solar power system? Currently business owners are taking advantage of two key cost savings–interest rates are low on equipment borrowing, and the 2015 depreciation schedules and tax incentives are set. There is still plenty of time to take advantage of this before the end of the year.