Solar energy is simply the most abundant form of energy available on Earth. Around 173,000 terawatts (or more than 10,000 times) of solar energy are available to the Earth at any one time.
Solar energy can be used to capture the sun’s energy, and turn it into electricity for your house or business. This is an important solution to the current climate crisis. It also reduces our dependence on fossil fuels.
1. What Is Solar Energy And How Do Solar Panels Work
The sun is a natural reactor for nuclear energy. Photons are tiny particles of energy that travel approximately 8.5 minutes from the sun to Earth. Each hour, enough photons are released to produce enough solar energy to meet the global energy requirements for an entire calendar year.
Photovoltaic power currently accounts for five to ten percent of all energy consumed in the United States. However, solar technology is improving rapidly and the cost to go solar is falling rapidly, so our ability to harness the sun’s abundant energy is promising.
Photons are responsible for releasing electrons from atoms when they hit solar cells. An electrical circuit is formed when conductors are attached on the negative and positive sides of a cell. These circuits generate electricity when electrons flow through them. A solar panel can contain multiple cells, and multiple modules (or panels) can be wired together in order to create a solar array. You can expect to produce more energy if you have more panels.
Photovoltaic solar panels consist of many solar cells. Like semiconductors, solar cells are made from silicon. The solar cells are made with a positive and a negative layer that together create an electric field. This is similar to a battery.
2. Pros And Cons Of Solar Energy For Your Business
Solar energy can be an eco-friendly and great investment for many businesses. However, it’s not for everyone. The decision to go solar or not can have an enormous impact on your bottom line. You need accurate, objective information to understand the benefits and drawbacks of solar power.
Reduction in overheads
It’s simple: Reduce overhead and increase profits. Every business strives to improve efficiency and increase profits. This is possible with solar energy.
A solar system can be installed to generate your own electricity. This will reduce the monthly cost of running your business. Solar panels can last 25-30 years. This means that you will have free electricity for many decades.
Great Tax incentive
The government wants more companies to invest in solar so they are making it more affordable by offering substantial tax-saving incentives.The Solar Investment Tax Credit allows companies to recover 26% of the system’s costs through a credit on federal taxes. In 2023, this incentive drops to 22% and by 2024 to 10%. You could lose a lot of money if you wait to install solar.
Lower energy costs
Many people consider the greatest benefit of switching to a source of renewable energy like solar, which is the cost savings. Although switching to solar energy won’t decrease your energy consumption it will allow you to generate your own electricity instead of having to buy it from Philadelphia Electric Company. You won’t have to pay PECO energy bill every month.
The upfront cost of installing solar panels is one of the greatest barriers. Although prices have dropped significantly, it is still a substantial investment.
A 100-kW system could have a installation price of approximately $220,900 before tax incentives and $107,598 afterwards. Many commercial solar systems have a payback period of few years and can have a double digit ROI.
You must consider where the panels will be placed. Businesses often install solar panels on their roofs to make the most of underutilized space. However, not all roofs are suitable for solar. You may need to look for another solution if your roof is not able to receive enough sun or can’t support the extra weight of solar panels. Ground mounts can be placed in the best location for electricity generation, even though they take up some land.
Not good if you plan to move
The long-term investment in solar energy is worthwhile. Your system may take several years to produce enough electricity to pay for its full cost. Once it is fully paid for, you will be able to keep the money in your pocket or invest it elsewhere.
If you may not want to move your business to another location after your solar system has been installed, you might want to reconsider this.
3. How Going Solar Can Make Your Business More Profitable
Many businesses go solar because they have the same reasons as homeowners. The rising cost of grid electricity can have a significant impact on your bottom line, whether you are trying to balance a family budget or a business ledger.
Installing solar panels now will allow you to save money on your PECO bills and generate higher profits. Sunshine, however, is not subject to any change in price. It’s as affordable today as it is in five, ten, or twenty-five years.
Solar energy can immediately reduce your utility bills and will continue to grow over time. Commercial solar customers often get more benefits than residential customers. This is because:
Many companies work during daylight hours with their computers, lights and HVAC systems at full speed.
The highest energy consumption period is the daytime.
Utility rates are at an all-time high.
Solar PV panels work best in those hours
With a solar system, businesses can store their own energy on-site, further reducing their reliance on grid electricity and preserving the ability to power their business in the event of a power outage and can save more on overheads.