As solar becomes more viable for individuals and businesses across the world, the question of the potential returns on solar investment made on businesses has become more pertinent. Today, we’ll be looking at the return on investment in solar power for residents of Sacramento, Brentwood, and San Jose. West Coast Solar, Inc. offers a variety of solar power services for our commercial customers!
Local Power Rates
Despite the benefits of solar, it is not always reliable. Power output suffers when solar energy is low from prevailing cloudy conditions or seasonal changes. You can, however, combat this by attaching batteries onto the solar system to store excess power when solar energy is high. However, existing battery technology can be expensive when storing the power needed. As a result, you may need to supplement with power from the grid to meet your demands. The rate you get from the grid will influence how much return you get from your solar installation.
Power Consumption Rate
Depending on your business, your consumption rate is likely to be different from anyone else's. For example, when compared to residential solar, an industrial business is likely to demand greater power if they are running large machinery. As such, the installers must study your power billing history to build a system that meets your needs. Because of this, the cost of your solar panels and the complementary technology you will implement may differ, and consequently affect the return on investment you see.
The Roof Orientation
The solar power harvested is largely dependent on how much sun your panels will get, and the orientation of your roof makes a big difference. Therefore, solar panels should not be blocked by physical barriers such as trees or structures like buildings in order to work in top condition. Most southern-facing panels will capture the mid-afternoon sun, but west-facing panels also capture sunshine at peak hours. The key is to decide when you need the power the most and configure your panels toward that. For example, for most businesses, peak power demands rise from 3 pm-7 pm, so they can configure their systems to these conditions to get the most out of their investments with help from their solar installation experts.
Payments Options and Tax Incentives
Depending on your needs, businesses can acquire solar through either a loan or cash. Leasing can help plug energy demands quickly, but will not result in saving money from the government’s incentives on solar. Loans and cash, on the other hand, can be cost-effective as they will help you be eligible for tax rebates from the government that lower the installation costs. For example, the federal government will offer a 26% credit on taxes to people installing solar, this increases the ROI on the investment, as installation costs will be significantly lower.
Using solar power is increasingly being viewed as a good strategic business decision. Like any strategy, looking into the factors that influence success will yield greater results. For businesses in Sacramento, Brentwood, and San Jose, there is no better time to get into solar, given the massive benefits from all levels of government in the form of tax incentives. If you need quality commercial and residential solar installation services, contact West Coast Solar, Inc. today!