If you’re a business owner, you’ve learned to expect the unexpected. Maybe you’re planning for unforeseen challenges by creating a cash reserve, diversifying product offerings or looking into solar power.
In fact, installing commercial solar panels is one of the best ways to plan for an unpredictable market, as it offers different ways to boost your bottom line. But aside from the anticipated benefits of using solar to power your business, there are a handful of unintended benefits as well.
Here are seven that you may not have considered:
1. Protection Against Volatile Electricity Prices
It’s widely known that by installing solar panels on or near your commercial property, you can reduce the electricity you need from the grid, which can help lower your utility costs. But did you know that those shiny solar electric or photovoltaic (PV) panels can also protect your company from volatile electricity prices?
It’s true. Going solar enables business owners to lock in their solar energy costs as long as their array continues to generate solar power — often for 25 years or longer.
How? Whether you pay cash or choose a loan or solar lease, you are either paying for your solar system upfront or agreeing to pay a predictable monthly rate for the length of your financing term. This means, even if you opt for a price escalator (pay a lower amount initially and then increase your solar payments as the years proceed), you can expect to pay less than what your utility will ultimately charge over the course of two-plus-decades.
2. Increased Business Value
The clean energy revolution isn’t coming — it’s here. As such, the demand for solar-equipped commercial buildings has never been higher. Some studies have suggested a direct correlation between solar panels and higher business property values, but there hasn’t been enough long-term, comprehensive research to report verifiable findings.
That said, does adding solar power have the potential to boost your property’s selling price? Absolutely. If you own a multi-family commercial building and install solar that, in turn, lowers electricity costs for your tenants, you’ll likely see an uptick in appraised value.
Suppose you own a light manufacturing facility that relies on electricity to create goods, and you slash your utility bill in half by installing solar; your asset may be deemed more valuable than it was prior to PV panels.
Commercial property owners who purchase their solar system outright are most likely to see the biggest boon because they can take advantage of tax incentives and even claim solar renewable energy credits (RECs). And, if you don’t want to claim the green attributes of your solar generation (the key benefit of RECs), you can sell these credits on the open market. This additional revenue stream may also increase your business value.
3. Improved Reputation and Public Image
Even though your commercial system promises to pay off on your balance sheet, going solar isn’t just about monetary savings. Integrating solar power into your business model can be just as big of a win for the environment as it is for your bottom line — and people will notice.
By now, you’re likely aware that producing your own emission-free energy can help your company reduce its carbon footprint and move closer to achieving your sustainability goals. But you may not have anticipated the positive public image or improvement to your brand reputation that accompanies a commercial solar system.
Installing on-site solar is a highly visible, undeniable effort to reduce your company’s greenhouse gas emissions. As a result, this decision will elevate your corporate image by showing that your company cares about environmental and socioeconomic impacts.
Think of the positive PR you’ll generate each time someone sees your solar array. By raising awareness about the importance of decarbonization on a commercial scale, you may even inspire other businesses to shift to solar power.
4. Support for Local Jobs
Committing to eco-friendly principles is just one way to support your local community. Job creation is another benefit — one you may not have considered.
In the U.S., solar PV installers are one of the fastest-growing occupations. The Bureau of Labor Statistics expects this occupation to grow 27% between 2021 and 2031. The more businesses that go solar, the higher the demand for these local jobs that can’t be outsourced.
Clean energy is building a new workforce in America. Jobs in the fossil fuel sector are being replaced by solar technicians, energy analysts and grid integration engineers. Although jobs in the solar energy sector slowed down when the pandemic hit, they are making a fierce comeback.
By choosing solar for your business, you are boosting employment opportunities for young professionals or seasoned workers looking for a career change; essentially, anyone who wants to make a positive impact on the planet.
5. Appeal to New Customer Segments
In today’s economy, a company's commitment to sustainable business practices is valuable at every level, from the boardroom to the end consumer. Installing commercial solar panels demonstrates that your company cares about more than making money. By showcasing this commitment, you can attract customers whose personal values resonate with environmentalism and corporate social responsibility.
While most customers want to know that the businesses they support are good global citizens, this is especially true for Millennials, who now represent the largest group of consumers in the nation. Choosing to be sustainable (and highlighting these efforts) can ensure your business appeals to America’s largest group of consumers.
In addition to capturing new customer segments, companies that go solar can also gain brand loyalty. By increasing retention, your business is more likely to improve its customer lifetime value and capitalize on additional offerings down the road. In a competitive industry, companies that adopt renewable energy can emerge as leaders and generate even more customers through word-of-mouth and referrals.
6. Attract Mindful Employees
Beyond customers, a socially and environmentally engaged corporate culture often attracts (and retains) like-minded employees. By adopting and guiding employees towards sustainability initiatives such as solar, your company offers employees a sense of purpose. In doing this, business owners are empowering team members to create brighter futures not only for others, but for themselves.
A strong culture communicates how different roles will contribute to the greater good — this improves overall employee satisfaction. And by retaining a passionate, dedicated workforce, your company can reduce voluntary turnover and minimize recruitment and training costs.
7. Gain a Competitive Edge
One reason commercial solar has become so popular in recent years is that it’s a sound business strategy. As companies look for different ways to gain an edge over their competitors, many seek out low-risk, high-yield investments — and land on solar.
Consider that solar production itself is quite low-risk. When the sun is out (yes, even on cloudy days), PV panels absorb the sun’s energy and inverters turn the current into usable power. Solar infrastructure is durable and long-lasting; many systems require little maintenance.
As soon as commercial solar systems are turned on, they begin providing immediate benefits to your company’s bottom line. Like other construction projects, the minimal risks associated with solar can either be insured or mitigated by choosing a reputable solar energy company, like Sunnova.
Encourage Your Business to Thrive
Business owners who commit to being part of the solution can enjoy a range of benefits that extend far beyond electricity savings. Improve your brand, support your local community and allow your business to thrive beyond expectations — with commercial solar.