In the next five years, India will add 50 GWs of solar energy capacity, according to CEOs of Bridge to India. As more consumers indicate their readiness to switch to solar energy and the predicted energy consumption grows, the perks of using solar panels are taking a front seat. Within the last decade, economies and businesses alike have all hopped on board to champion the use of renewable energy. Around 90 percent of countries around the world are now apart of the Paris Agreement. For businesses, the use of solar panels could lead to control of their costs, boost business reputation, and may even result in access to tax exemptions for you and your business in future tax years.
Solar Panels Can Reduce Business Expenses And Improve Business Efficiency
Recently, the World Energy Outlook 2020 by the IEA showed that solar energy is now the cheapest in history. Based on a predicted 43 percent rise in solar energy output by 2040, solar energy turned out to be 20-50 percent cheaper than initially estimated. Also, while the prices of installing solar panels were historically capital intensive, they have been continuously declining, beating cost forecasts by decades. In fact, India has recently been dubbed the lowest cost producer of solar panels. For businesses in India, this is great news for their capital investment and the continuous benefits solar panels can produce throughout the years.
The average lifetime of solar panels is typically 25-30 years. A great example of the cost savings businesses can experience from installing solar panels is the Trishul Cooperative Housing Society in Mumbai, which spent 8.38 lakh to install 40 solar panels on their building. They went on to experience a cost saving of 98 percent. The use of commercial solar panel systems is also championed by many government initiatives, which can further reduce the overall cost to the business through tax rebates and incentives.
Switching To Solar Energy Can Help To Stabilize Financial Projections
Energy prices are set to rise in the coming months in India, which can affect a business’s bottom line. Since the use of solar panels can eliminate electricity transmission and distribution costs and are installed on the roofs of commercial buildings, infrastructure costs are reduced. Also, by investing in solar panels, businesses are given greater control over their energy costs. Since they will rely less on grid generated electricity, businesses will not be as affected by the planned energy price hikes or power cuts, if any. This also translates to more accurate budgeting and cost projections in the coming years, as they are more aware of the exact energy costs they will be incurring.
Investing In Solar Panels Can Improve Your Business’ Credentials As A Sustainable/Green Entity
Lastly, the call for brands to champion sustainability is growing louder. In a survey by Futera, 88 percent of consumers said they want brands to help them make a difference, while 46 percent said they would pay for an eco-friendly product or brand. In India, 70 percent of consumers are looking for sustainable brands. Businesses that invest in solar panels can utilize this move to boost their green credentials. This creates positive marketing opportunities and a chance to tap into a new market – sustainable driven consumers.
While it does require an investment upfront, commercial solar panels are the future of energy. For businesses, it can provide cost reduction opportunities and other benefits for years to come. The best part is, with the solar energy market booming right now, there are more financing and purchasing options available than ever before. No longer is embracing solar energy simply about being a responsible citizen: it now also makes business sense.