Today, more and more companies are turning to solar power to cut costs and reduce their impact on the environment. From small shops to big factories, businesses of all sizes are finding that solar energy can work for commercial use. Solar energy uses the sun’s power to make electricity, offering many benefits for businesses.

This article will look at why solar energy is good for businesses, including how it helps the environment and saves money. We’ll also cover what to think about before getting solar panels and share some real-world examples. By the end, you’ll see why solar power is a smart choice for businesses of all sizes.

How Solar Power Works

Before we dive into the benefits, let’s quickly go over how solar power works. Solar panels are made up of many small units called photovoltaic cells. These cells take in sunlight and turn it into electricity. This electricity can then be used right away or stored in batteries for later.

The process is simple:

• Sunlight hits the solar panels
• The panels turn the sunlight into electricity
• An inverter changes the electricity into a form that can be used in buildings
• The electricity powers the business or goes back to the power grid

Why Solar Power is Good for Businesses

Solar power is clean and never runs out. It turns sunlight into electricity without causing pollution. Here’s why it’s great for businesses:

Good for the Environment

Less pollution: Solar panels don’t make harmful gases, so they’re better for the air and climate. For example, a commercial facility with a 500kwp solar capacity can save up to 8682.287 metric tons of carbon emissions in an hour.

Always available: Unlike oil or gas, sunlight won’t run out. This means businesses can rely on solar power for a long time. The sun will keep shining for billions of years, so we don’t have to worry about using it all up.

Cleaner air: Because solar doesn’t burn fuel, it doesn’t make the air polluted.In cities where lots of businesses use solar power, the air quality has gotten better. This means fewer health problems for workers and people living nearby.

Water saving: Making power with coal or nuclear energy uses a lot of water for cooling. Solar panels don’t need water to work, so they help save this important resource. For example, a business with a 500kwp solar capacity can save up to 500 gallons of water an hour.

Saves Money

Lower power bills: By choosing a Solar Power Purchase Agreement (PPA), businesses can enjoy significant cost savings of up to 50% on their electricity bills, courtesy of their solar provider. This long-term savings strategy ensures a sustainable and profitable investment for your company, providing a reliable and clean source of energy for years to come. 

Tax Incentives: In the Philippines, companies that enter into Solar PPA with certified providers are exempt from paying value-added tax (VAT) on their electricity bills. This VAT exemption enables companies to redirect the resulting savings towards strategic investments and growth initiatives.

The implementation of this policy has significantly boosted the adoption of solar energy solutions across various industries in the country. By incentivizing the use of renewable energy, the Philippine government aims to reduce the nation’s carbon footprint and promote sustainable development. Moreover, this tax benefit has created a ripple effect, stimulating job creation in the renewable energy sector and fostering innovation in solar technology.

Steady costs: Enterprises can anticipate a predictable and fixed tariff structure when partnering with a reputable Solar PPA provider like Berde Renewables. Business owners can expect to enjoy a stable and consistent electricity rate for the duration of the agreement, typically spanning 10-25 years.

New customers: Many people like to support businesses that care about the environment. Using solar power can attract these customers and gain more profit.

Things to Think About Before Switching to Solar Power

Before switching to solar energy, businesses should consider:

Starting costs: Transitioning to solar energy may require significant upfront investments for businesses, particularly if they opt for a Solar Engineering, Construction, and Procurement (EPC) solution. However, companies with limited budgets to transition to renewable energy sources may consider partnering with a solar PPA provider, such as Berde Renewables, to eliminate the need for a down payment.

Space: You need enough room on your roof or land for the solar panels. A good rule of thumb is that you need about 6000 square feet of roof space for every 100 kilowatt alternating current (ac) of solar panels.

How much power you use: Know how much electricity your business needs to make sure solar can work for you. You may look at your power bills from the past year to get a good idea of your energy use.

Upkeep: Solar panels need some care to keep working well. Think about who will do this and how much it will cost. Usually, solar panels only need to be cleaned quarterly per year. Berde Renewables offers solar operations and maintenance to give business owners a peace of mind. 

Your roof: If you’re putting panels on your roof, make sure it’s in good shape and can hold the weight of the panels. You don’t want to have to take the panels off to fix the roof in a few years.

Sunlight: Check how much sunlight your building gets throughout the year. Buildings with lots of shade might not be the best for solar power.

Bottomline: Why Solar Power is a Smart Choice

Solar power is good for businesses in many ways. It helps the environment and saves money over time.

Using solar power can lower your power bills, make your property worth more, and help keep the air clean. It also shows that your business is dedicated to sustainable practices.

As more people want clean energy, using solar power can make your business stand out. It’s a good way to save money and help the planet at the same time.

If you want to learn more about using solar power for your business, talk to our solar experts from Berde Renewables! Berde Renewables, a portfolio company of Isquared Capital, is dedicated to making the transition to renewable energy accessible to the industrial and commercial sectors. They can look at how much power you need and help you find the best solar setup for your business. It could be the first step to saving money and using cleaner energy.

Remember, switching to solar power is a big decision, but it’s one that more and more businesses are making. With careful planning and the right renewable energy partner like Berde Renewables, solar energy is the right direction for the future of your business.