Table of Contents
As the world heads closer to a complete climate crisis, it’s everybody’s responsibility to act. Solar power is a renewable energy source so it doesn’t produce greenhouse gases and therefore plays an important role in mitigating the effects of climate change.
But that’s not all! Solar power is also a viable way to cut costs and many businesses have already jumped on the bandwagon.
With the cost of energy on the rise, coming up with innovative ways to power your business is at the top of most people’s lists. Not only can this lower your expenditure but solar power is also a great way to start boosting your profits and in this guide, I’ll explain how.
How Solar Power Can Lower Your Business Expenses
In order to be a profitable business, you need to ensure that you keep your expenses as low as possible without compromising on the quality of your product or service. This can often be a difficult task but re-evaluating how you power your business is one of the most cost-effective things you can do. Let’s take a look at some of the ways solar panels will help you to save money.
Spend Less On Energy Bills
The most obvious benefit of turning to solar power is that your business will spend less on energy costs. While there is a cap on domestic energy rates in place, there is no commercial cap. As a result of this, it’s reported that energy costs for businesses have gone up an astonishing 180% in the last year alone.
This is an extremely worrying figure and something that has a shocking impact on the commercial world. For example, in a recent report, we learned that more than 4600 hospitality businesses have had to close their doors purely because their energy costs have become too high.
Naturally, saving money on energy is something that all business owners are looking at and by installing solar panels, you may be able to save up to 50% on your current energy bills. That’s something we can all get on board with.
Avoid Price Fluctuations
With things as unstable as they are in the energy industry right now, the risk of suffering from price fluctuations is very real.
When you rely solely on energy providers, you can never be sure when those prices are going to go up. Yes, there’s a chance that they could also drop but in today’s climate, that’s very unlikely.
But with solar panels, there’s no risk of your business being exposed to these costs so you can rest safe in the knowledge that you won’t suddenly have an unexpected increase in your outgoings.
High Return On Your Investment
Installing solar panels is not the cheapest investment your business will ever make. However, it’s one that offers a very high return and this happens relatively quickly.
It’s reported that within six to eight years, you may see a return of between 14% and 16%. This can be extremely beneficial to all businesses but more so those that consume high levels of power such as agricultural businesses and manufacturers.
What’s more, solar panels are incredibly reliable and don’t often require maintenance. In fact, once the initial installation is complete, most high quality solar panels can be left alone for up to 30 years before they require any serious maintenance. The only thing you should consider is that the panels will need annual cleaning if they are to perform optimally.
But How Can Solar Power Increase Business Profits?
It’s all well and good understanding how solar power might decrease your business expenses but what most business owners are looking for are ways to make the most profit. While it might not be immediately obvious, installing solar panels can be a fantastic way to boost your profits.
Invest Money In Other Areas Of Your Business
As I have already discussed, the cost of energy has risen to a staggering height but after installing solar panels, your business will have cash left over to invest in other areas.
Perhaps there’s a new marketing strategy that you’ve been looking at but business funds haven’t allowed you to implement it thus far. Maybe you’re looking to hire more employees to boost productivity and therefore profit but haven’t had the financial capacity to do so as yet.
Whatever your investment may be, saving money on energy bills will increase your chances of being able to implement these things and in the meantime, you’ll be able to watch your business grow.
Attract More Clients With An Improved Reputation
If there’s one thing that the modern consumer demands, it’s an eco-friendly business. With the terrible effects of climate change being reported all over the news and social media, awareness is growing. For consumers, being able to use the services and products of businesses that are on this bandwagon is extremely important.
In fact, in a recent survey, as many as 66% of consumers reported that sustainability was something they looked for when choosing a business to deal with.
The more you can attract clients, the more profit your business will make. But in this day and age, being green is what really matters.
Improve Employee Morale And Productivity
It’s not only your client base that will thank you for switching to solar power. Your staff will also find this to be a welcome change. According to a report in SeeChange Magazine, employees’ well-being and sense of fulfilment are improved when their employer adopts sustainable practices.
By boosting employee morale, your staff members are likely to be much more productive. A more productive team equals a better-performing business and that will naturally increase profits. It’s a win for everyone involved.
Sell Energy Back To The Grid
I can’t promise how much energy your business will generate once you install solar panels as this can vary from property to property. But what I can tell you is that businesses that generate more power than they can use can actually make money on this by selling it back to the grid.
This comes under the UK Government’s Smart Export Guarantee and sees businesses being paid a preset amount for every unit of energy they don’t use.
However, if you want to take advantage of this incentive, there are a few criteria that you’ll need to meet. For example, a special type of metre that takes readings every half an hour must be installed and your solar equipment must meet the standards listed on the government website (link above.)
Avoiding Blackouts
One of the worst things that can happen for a business is a blackout. This can mean halting production for the duration of the power outage which is seriously damaging to profits.
But with solar power, you won’t need to worry about this as your business will be self-sufficient and able to continue functioning even when the grid is unreliable.
Government Grants - Another Way To Save Money
It’s worth noting that, on top of the benefits I have already discussed, the UK government is prepared to back businesses that are looking to go greener!
One of the things that I hear a lot of business owners talking about is the initial cost of installing solar panels. There’s no denying that this can be an expensive venture but it should also be viewed as an investment for the future.
There are several grants available for businesses (as well as domestic grants) for the installation of solar panels. At the time of writing, the government has set aside £5 billion to help businesses fund their eco-friendly changes.
Final Thoughts
Many businesses have suffered at the hands of the increasing energy prices but don’t let your business be the next. Solar power is a great way to reduce your outgoings and increase your profits.
While there may be an initial investment required, this is something that you can get help with and will offer an amazing return on your investment.
