It goes without saying, no one likes paying bills. Running a small business can be tough enough before you have to manage your outgoings and OPEX. Bills don’t stop coming and basics like electricity can stack up very quickly. Switching utility providers is a good start but it is usually just a band-aid to an ongoing problem.
Then when you factor in the amount of pressure that is building behind renewables and businesses becoming more sustainable, finding ways to go green affordably can be challenging.
One way in particular that not only reduces your OPEX and reduces your businesses carbon footprint is to go solar.
The most abundant energy source we have available to us is the sun. Solar works by harnessing the sun’s power and turning it into electricity that can be used by your business. When the sun hits the solar panels, it excites cells inside which produce DC power. This is known as the photovoltaic effect. That DC power is then sent down into an inverter which converts it into AC power that can be used by your lights, appliances and anything plugged into a power source.
For every kWh (kilowatt hour) of power your business uses, it is a kWh that you don’t need to buy from the grid. Plus, if you have any surplus energy it gets sent back into the grid and you will be paid a credit known as a ‘feed in tariff’.
Three of the key factors that positively impact small businesses installing solar are, access to cheap funds, when you actually use and consume power and the additional tax savings.
Firstly, due to the growth in the industry and the bankability of Australian Small businesses, accessing funds to pay for projects like solar are cheaper than ever before. In some circumstances, new solar installations can be cash flow positive from day 1. Even the big banks like CBA are providing green loans for solar and battery specific products at super low rates to encourage people to make the switch to renewable energy.
Second, a lot of Australian small businesses are busiest when the sun is shining because you operate during standard business hours. This is great for solar because the more power you use rather than sending back to the grid, the more the economics stack up in your favour.
Finally, solar is an asset. When you have it installed on your business you can leverage the government’s instant asset write off and claim the GST and depreciation saving you even more money.
On top of all of the economic benefits of solar, at the end of the day you will be generating your own clean, green, renewable energy. You can promote your active approach to the environment and inturn get all of that positive exposure to your existing and new clients.
If you aren’t sure or don’t know where to start it is best to speak to a commercial solar consultant. A good solar consultant should start by understanding your current usage, consider your future plans and model your savings based on an ideal system size.
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