While many Fortune 500 companies have installed solar panels on a large scale, smaller businesses are yet to understand its potential fully:
Lower energy costs
According to EnergySage, an average American commercial property owner spends about $1,950 monthly on electricity bills. Solar panels can bring this number down by almost 75%. While exact numbers will depend on the size of the installation, production efficiency, and the total kWh production, the EnergySage report points to one significant benefit: remarkably lower electricity bills that can help recover the upfront installation costs in under ten years.
Once the solar panels have been paid off, electricity can be generated for free! Since most solar panel manufacturers offer a 25-30 year warranty, businesses are guaranteed cheap, if not free, electricity for decades.
Federal tax credits and rebates
The growing government interest in renewable energy, coupled with the urgent push towards achieving the ambitious Paris agreement goals, has led to a spate of subsidies, rebates, and tax credits for early adopters. In the US, businesses can claim a 26% tax credit on the total installation charge. The federal government also allows businesses to deduct up to 85% of the additional cost from their business income taxes in the first year. Even the Indian government provides significant subsidies and tax deductions to businesses that adopt solar energy.
Selling power back to the grid
Another way to save money with solar energy is to install battery storage systems connected to the main grid. Using net metering programs, businesses can sell excess energy to power companies at fixed rates, lowering costs.
Building a green image
Today’s consumers increasingly favor brands that promote sustainability and green energy production. Studies suggest that 73% of buyers are willing to pay more for greener products. The first step towards building a green image is adopting solar technology. Investing in solar energy demonstrates eco-sensitivity, endearing companies to the modern consumer.
Money savings for homeowners with rooftop solar installations
Energy production has been unable to keep up with the growing demands of a burgeoning population, leading to power cuts and inflated bills. Installing rooftop solar panels help create an efficient supply system while lowering bills.
Savings on electricity bills
An average US household spends nearly $1,430 on electricity annually. Based on the average installation price of a 6 kW solar system and electricity rates, a typical household stands to save $115 per month. In India, these savings can be more pronounced. Using net metering, households can also sell the surplus to the grid.
Higher home value
Since solar panels translate to lower energy costs, in the long run, properties with solar panels will fetch an additional 10% over the market value. According to a report by the US Department of Energy’s Lawrence Berkeley Laboratory, solar energy systems typically add $15,000 to a home’s worth. A similar study in the UK found that solar panels can increase the sale price of a house by £1,800.
How can Voltreum enhance savings by helping you trade solar energy?
Voltreum is a blockchain-based decentralized peer-to-peer energy trading platform that facilitates real-time, borderless energy exchange between energy surplus prosumers and energy deficit consumers. It is a secure, reliable, and transparent system that enables renewable energy trading independent of a central governing authority.
Such a decentralized mechanism allows the prosumers to set their rates for the surplus and connects them to buyers in real-time. It benefits businesses and households by lowering energy costs, reducing dependency on private or state-owned utility companies, and providing the opportunity to sell the surplus.
Visit our website to learn more about how Voltreum’s peer-to-peer energy trading platform will transform the electricity sector.