Solar power is the process of converting sunlight into electricity using solar panels, and it’s often misunderstood as too expensive for businesses. However, the cost of solar energy has significantly dropped in recent years.
In New York, businesses can save up to 70% on energy costs with solar systems. According to the Solar Energy Industries Association (SEIA), solar prices have fallen by over 70% in the past decade. This makes solar an affordable and sustainable option.
At Buffalo Solar, we aim to educate businesses on the real costs and long-term benefits of solar power. In this blog, we will debunk the myth that solar power is too expensive for businesses and explain how the switch to solar can lead to significant savings and energy independence.
The misconception that solar power is too expensive can prevent businesses from embracing long-term savings. By avoiding solar, businesses miss out on potential reductions in energy costs and long-term sustainability.
In fact, medium- and large-sized businesses can save thousands annually. According to a report by the U.S. Department of Energy, commercial solar users can save anywhere from $10,000 to $100,000 per year on energy bills, depending on the size and location of their operations.
Additionally, businesses that invest in solar often benefit from tax incentives and rebates, further lowering upfront costs. This myth, if believed, could lead to missed opportunities for substantial savings and a greener, more profitable future.
Solar Power Installation Is More Affordable Than Ever
Solar power installation is more affordable than ever due to significant price drops and increased efficiency. The cost of installing solar panels has decreased by over 70% in the last decade, making it accessible to businesses and homeowners alike. According to the Solar Energy Industries Association (SEIA), the average cost of solar systems has fallen from $3.50 per watt in 2010 to around $0.90 per watt today. These savings, combined with incentives, make solar an attractive investment for the future.
One of the biggest advantages of solar power installation is the array of federal, state, and local incentives available to help offset costs. The Federal Investment Tax Credit (ITC) allows businesses to deduct up to 30% of the cost of installing a solar energy system from their federal taxes. In addition, many states offer their own incentives, such as rebates or property tax exemptions, to further reduce the cost of solar power installation.
Another reason solar power installation is more affordable than you might think is the availability of various financing options. Many solar companies, including Buffalo Solar, offer flexible financing plans that allow businesses to pay for their solar energy systems over time. These plans can often be structured so that your monthly payments are very similar to your current energy bills, effectively making it a bill swap until your loan is paid off.
Over the last decade, the cost of solar power installation has dropped dramatically, thanks to advances in technology, economies of scale, and increased competition in the solar industry. According to the Solar Energy Industries Association (SEIA), the average cost of commercial solar installations has fallen by more than 70% since 2010.
This reduction in cost has made solar power an increasingly attractive option for businesses. Today, solar energy is not just for large corporations with deep pockets—small and medium-sized businesses can also afford to make the switch to renewable energy.
Fact: Solar panel efficiency has also improved, meaning you can generate more electricity from fewer panels, further reducing installation costs.
One of the most compelling reasons for businesses to invest in solar power installation is the potential for a strong return on investment. Solar panels typically have a lifespan of 25-30 years, meaning that once you have paid off the initial investment, your business will continue to benefit from free electricity for decades.
For many businesses, the ROI on solar power installation can be realized in as little as five to seven years, depending on the size of the installation and the amount of sunlight your location receives. After this payback period, every kilowatt-hour of electricity generated by your solar panels represents pure savings.
Example: Solar power offers strong returns on investment (ROI) for businesses. For instance, a case study from Peninsula Solar reports that businesses can expect an ROI ranging from 8% to 10% annually, with systems typically paying for themselves in under 10 years.
Many states also offer additional incentives that can help lower the cost of solar power. These Incentives and Tax Credits: Making Solar Even More Affordable
As mentioned earlier, federal, state, and local incentives can significantly reduce the cost of solar power installation for businesses. The Federal Investment Tax Credit (ITC) is one of the most important incentives available. Under the ITC, businesses can deduct 30% of the cost of their solar installation from their federal taxes. This can result in substantial savings, especially for large installations.might include:
At Buffalo Solar, we help our clients navigate the various incentives and tax credits available to ensure they are maximizing their savings.
Do not let the myth that solar power is too expensive prevent you from taking advantage of this renewable energy solution. With the declining cost of solar power installation, government incentives, and flexible financing options, solar energy is more affordable than ever for businesses of all sizes.
At Buffalo Solar, we are committed to helping businesses make the transition to renewable energy. Contact us today to learn more about our solar power installation services and to get a customized quote for your business.
Visit our website at Buffalo Solar to get started on your journey to energy savings and sustainability!