Shifting Your Business To Solar Energy: 3 Things To Know

hand holding lightbulb with small tree. concept energy power in nature

Humans have been using non-renewable sources of energy such as coal for many years. However, due to increased use, these energy sources are considered depleting at an alarming rate. And apart from this, these non-renewable energy sources also cause environmental pollution, leading to global warming and other issues.

And due to these reasons, the need for a cleaner and renewable energy source has been apparent. Solar energy, for instance. Renewable energy is a great investment strategies to which people should learn and pay attention more.

What Is Solar Energy?

Essentially, from the terminology itself, it utilizes the sun’s thermal energy and light and converts it into usable energy. Solar energy isn’t a new concept anymore, but it was until the late 19th century that people began adopting this clean energy source to power homes and industrial facilities.

In fact, over the last few years, the popularity of this energy source has grown exponentially, with many businesses opting to utilize this energy to power their production lines, reducing their monthly bills and expenses and improving the business’s bottom line.

Suppose you’re looking into shifting your business to solar energy. In such a case, here’s a quick rundown of what you need to know before adopting solar energy to run your business operations.

1. Certifications

A worker installing solar panels on the roof.

Every local administration has rules and regulations surrounding the installation and use of solar equipment. As a business owner, it’s essential to take your time to learn more about these installation and certification codes. And thanks to technological advancement, you can easily access this critical information from the comfort of your office on your local government’s sites or through emails.

Considering how technical this aspect could be, it’s recommended to seek assistance and hire a reputable contractor to ensure your business’s compliance with local building codes and standards. After all, failure to comply with the set of rules and regulations may lead to fines and convictions, affecting your business. You can check at Solar run or other reputable energy providers in your locality to learn more.

2. Financing Options

Solar system installation is not a cheap investment and may leave a dent in your saving margins. For this reason, it’s essential to research and decide on the preferred financing options before shifting your business to solar energy.

To help you get started, there are several financing options you might consider, and they include:

  • Cash Purchase

This is arguably one of the most straightforward ways to finance your solar system installation. With a cash purchase, you’ll avoid interest and loan fee payments, and also, you don’t need a qualifying credit score.

  • Solar Loans

If you don’t have enough liquid money to pay for your solar system at once, solar loans are another financing option at your disposal. Over the years, you can easily get a solar loan from energy providers or your bank.

The major advantage of solar loans is that it allows you to go solar and own the system with no money down, often at a lower cost than your current electricity consumption. However, factors such as poor credit score may affect your application or, in some cases, may disqualify you from having such loans approved.

Before signing the contract, ensure you understand all terms and conditions. If there is any hidden cost, you may pay more money in the long run.

  • Getting Support From The Government

Today, governments are trying to encourage their citizens to go green. One of the ways they’re doing this is by providing funding for a percent of the total solar system installation. The percentages vary from one government to another. Make an effort to visit your government offices to learn more about this.

3. The Type Of Solar Power System

Before making the switch and going solar, it’s essential to know that there are several types of solar power systems you can choose for your business. Each type generally has a different cost depending on your electricity needs and the number of panels you require. They include:

  • Grid-tied Systems

In this type of system, your panels will be connected to the utility grid. Your business will utilize the energy produced by your solar power system. However, if you produce more energy than your business needs, the excess will be transferred to the utility grid.

Depending on where you’ll live, you might receive some bucks when you send excess electricity to the utility grid, increasing your profit margin. Also, in a grid-tied system, you can still use energy from your utility line in case of a solar system failure.

  • Off-Grid System

As the name implies, this system isn’t connected to the main utility grid. This type of solar power system is ideal for remote areas where access to power or energy is scarce and impractical.

Since it’s independent from a utility grid, this solar power system would need additional solar panels and batteries, which could incur more costs on your part.

  • Hybrid Systems

This is another solar system you might install to meet your business needs. It’s a type of system connected to the grid system and has an on-site storage system. Thus, it’ll be stored for future use when you produce excess electricity instead of being sent back to the grid system. This can reduce your dependence on the grid system, leading to a higher return on investment (ROI) in your solar system.

Wrapping Up

As discussed above, solar energy has become an increasingly popular source of renewable energy today. However, it’s essential to conduct extensive research and consult more than one service provider to ensure you make the most of your investment.

Andrew Brown
Andrew Brown, an MBA graduate from Columbia University, New York, has been a fixture in the business world for over 20 years. His expertise in strategic management has been a cornerstone of our content since he joined in 2016. Previously, Andrew held executive roles in several Fortune 500 companies, where he led transformative business initiatives. His years of experience in corporate leadership and consulting bring a wealth of knowledge to our readers. Outside of work, he mentors young entrepreneurs and enjoys playing chess.

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