Solar systems are as much a boon in commercial setups as they are for homeowners. The electricity tariffs for businesses can be as high as Rs. 16/unit. Depending upon the power consumption, businesses do end up paying hefty bills in 6 and 7 figures. Although half the web is full of information on how are solar panels installed, in our opinion, it’s important that you first learn about the advantages of installing solar panels for your business. As Much a Boon in Commercial Setups You ask us why? Isn’t it important to know the advantages of installing solar systems so that you can make an informed decision? So, grab that cup of coffee and skim through this eye-opening guide that’ll compel you to go solar. As Much a Boon in Commercial Setups Let’s get started! Top 4 Advantages of installing solar systems for your business
Solar Systems Are As Much a Boon in Commercial Setups
“We are like tenant farmers chopping down the fence around our house for fuel when we should be using Nature’s inexhaustible sources of energy – sun, wind and tide” Centuries ago, the father of inventions, Thomas Edison, warned the world that fossil fuel would one day be exhausted. That day isn’t very far from where we stand today. It’s businesses more than anybody else that require an alternative source of power generation since fossil-fuel-based electricity will cease to exist one day. Besides, the increasing cost of fuel is a big setback that happens every year. If you come to look at it, the cost of petrol has risen by almost Rs. 25 and the cost of diesel has steeply increased by almost Rs. 20 since June 2020.
The only alternative for commercial setups (both big and small) is installing solar systems. Solar systems harness the Sun’s energy to produce electricity. Neither the sun would go extinct, nor will solar electricity. If you’ve been worrying that solar electricity might not be sufficient for your power requirements, then you’re wrong. Global giants like Maruti, Tata Motors, and Kajaria have started going solar on a very large scale. In fact, the entire International Space Station is fueled by solar energy. Once you know how are solar panels installed and you’ve chosen the right one, your entire business will easily thrive on solar electricity.
#2. Freedom from power supply solely from the grid
What has it been so far for businesses? Expensive generators to keep the facility running? Dependence on the grid for power supply? On the other hand, once you have your own solar power plant, you wouldn’t be dependent on the grid for continuous power supply. The sun will serve the purpose of fuel to keep all your chores up and running. Although there’s one thing: you’ve got to ensure that the solar system you’re installing produces the amount of electricity you require daily to keep your facility running. Once you know how are solar panels installed and you’ve chosen the right one according to your power requirement, you won’t need electricity from the grid.
#3. Financial gains in unimaginable ways
Did you ever think that there could be a day when the discom would pay you instead of billing you for electricity? What was once an imagination has now become a reality. Let’s find out the many ways in which solar systems can make money for you!
Revenue from the discom
Solar systems generate maximum electricity during peak hours (11 AM to 2 PM). The excessive electricity generated during the peak hours is supplied to the discom. It is imported once the sun goes down to keep your facility running. However, if the supply of solar electricity to the discom is more than what you export, you become the supplier here. The electricity board will pay you in such cases for supplying them with electricity.
Lesser electricity bills
It’s funny how generating your own power makes you the supplier. But, that’s not the only way solar systems make money for you. The electricity rates for different states differ, but it’s still about Rs. 14 to Rs. 16 per unit that businesses have to pay as electricity tariffs. When the majority of power comes from the solar system you’ve installed, the electricity bill substantially reduces. Although you’ve got to invest money upfront on installation, having your bills reduced by lakhs breaks even the cost of investment in 3-4 years. What’s more exciting is that the life of solar systems can be as long as 25 years. It means you get free electricity for 25 years since solar electricity is free.
Benefits of income tax
People who have realized that solar energy can make them rich are the ones who want to know how are solar panels installed. We’re not kidding! Installing solar systems can actually make crores of rupees for you. When you invest in a solar system, it becomes your fixed asset. Since it won’t start giving returns for 3-4 years (until the installation cost breaks even), you can claim accelerated depreciation of 40 percent of the asset value of the solar plant. Here’s what we mean: if your business falls under the 30% income tax bracket, you save income tax of 30% of 40% (i.e. 12%) of the value of the solar plant. This recovery happens in the first year of the installation itself! These tax benefits are over and above the savings you make in your electricity bills. No FD – no other investment for that matter – can ever give you such high returns on your investment.
#4. Becoming a brand label by promoting clean energy
When you’re using fossil fuels for electricity, you’re releasing dangerous carbon emissions into the atmosphere. These emissions are responsible for global warming and deadly diseases like cancer and tumors. Nowadays, consumers have become very aware: if you start generating electricity from the Sun, your carbon footprint reduces. People would associate you and your business as the heroes trying to save the environment. As a result, your brand value will increase. Installing solar panels for your business will increase your brand value, save (and generate) lakhs and crores of rupees for you, and you’ll finally be free from the need for electricity supply from the grid.