Many business owners believe that the upfront costs of solar power installation are prohibitively expensive, preventing them from considering this renewable energy source as a viable option. While it is true that there are initial costs associated with installing a solar energy system, the reality is that the price of solar power has dropped significantly in recent years, and numerous financial incentives can dramatically reduce these costs.
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.
Many business owners hesitate to explore solar power installation because they believe the costs are too high. Specifically, that the initial investment is simply not feasible for small or medium-sized businesses or that it will take decades to see any return on investment.
Are you thinking the same? If you are concerned about the high costs of solar power installation, you are not alone. This belief can prevent businesses from reaping the benefits of lower energy bills, government incentives, and increased sustainability.
Believing that solar power is too expensive can actually hurt your bottom line. By sticking to traditional energy sources, you are missing out on potential long-term savings. In fact, the cost of conventional energy sources continues to rise. Based on moderate projection, business owners can expect to see a 50% in energy costs over the next 10 years. That means that small to medium size business with a $4000/month energy bill will be paying and $24,000+ per year more than they are right now– growing and compounding every year.
Every month that you delay the switch to solar power is another month of paying inflated energy bills and missing out on opportunities to take advantage of financial incentives. Over time, this adds up. Some high-energy usage companies we’ve worked with are on pace for saving MILLIONS of dollars over a 25-year period.
Solar Power Installation Is More Affordable Than Ever
While the cost of conventional energy continues to rise, the price of solar power has continued to decrease. In fact the cost of solar panels has declined by over 70% in the past decade, making it a much more affordable option for businesses of all sizes. Not only that, but there are numerous financial incentives, tax credits, and financing options available to make solar power even more accessible.
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.
While the initial costs of solar power installation might seem high, the long-term savings are undeniable. Solar panels generate free electricity from the sun, allowing your business to significantly reduce its energy bills. Depending on your energy consumption and location, many businesses see a return on their solar investment within five to seven years, after which they continue to benefit from free or reduced energy costs for decades.
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. After the loan is paid off, your business can start saving significant amounts of money.
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: A business with high energy consumption can save tens of thousands of dollars over the lifetime of their solar energy system, allowing them to reinvest those savings into growing their business.
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.
Many states also offer additional incentives that can help lower the cost of solar power. These 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!