When uncertainty strikes the economy, it’s all the more important to make investments that can provide a certain level of stability during market swings. Solar energy is one such investment, thanks to the reliability of its underlying technology, financing flexibility, savings it offers on utility costs, robust tax incentives, and many other attributes. Read on to find out why investing in solar is a smart business decision during unpredictable times.
Solar Is a Safe Investment
Investing in solar energy — whether roof or ground-mounted solar — is a prudent risk management tool no matter the size of your business. Although committing to a new capital investment project during uncertain times may sound risky, solar financial returns are stronger than ever. Installation costs have plummeted more than 70% over the last decade and, with increasing electric utility rates, energy savings are realizable as soon as the system is turned on. Here are some more reasons solar is a safe investment:
- Electricity cost certainty: With utility rates expected to rise, installing a solar system and taking advantage of renewable energy removes volatility from your operational costs by shielding your business from fluctuating energy rates over the system’s life.
- Zero capital options available: Solar is a low-risk investment, making it an attractive place for financing parties to park their capital during economic downturns. Though not necessarily predictive of how capital markets will treat solar during future downturns, the industry’s growth during the 2009 recession is a promising indicator. Furthermore, technology has only become more reliable over the past decade. By choosing a financed option, such as a power purchase agreement (PPA), your business can install solar and immediately realize utility cost savings without spending any capital.
- Low/zero-risk fuel source: Sunlight and occasional O&M are the only required inputs for a fully operational on-site solar system once it’s installed. The absence of many moving parts and the lack of a liquid or gas-based fuel that is open to supply chain interruptions makes solar a lower risk than many other types of electricity generation systems.
- Facility resiliency: Depending on how a project is engineered, solar can provide a level of resiliency for facilities by protecting against brownouts or blackouts. This added benefit can offer additional security for your operations when costly interruptions are simply not acceptable. (See below for more about this benefit.)
- Mature technology: Solar energy is by no means a new or untested technology; it has been refined and widely adopted over the decades since the first commercial system was energized. Proof of this? Look no further than the industry standard 25+ year manufacturer warranties on major system components.
Solar Can Benefit the Community and Economy
In addition to offering stability and strong returns for your business, investing in solar can provide much-needed support to the local community and economy during uncertain times. Unemployment tends to rise during economic downturns, and solar projects can support the workforce by creating jobs and stimulating economic development. Solar energy can also provide resiliency when power outages strike due to weather or disaster. If your solar system has “islanding” capabilities (able to disconnect from the utility grid while continuing to operate), it can produce critical energy for your facilities during a power grid failure. Solar in such an instance is more dependable than other more traditional generators that have many mechanical points of failure and rely on vulnerable fuel supply chains.
A volatile market can be cause for concern and a challenge for businesses, but an investment in solar offers a great deal of certainty in otherwise uncertain times. EnterSolar can help your business identify and execute on valuable solar opportunities. Our experience serving as the trusted solar partner for hundreds of onsite solar projects is a testament to our capabilities. That’s why it makes sense to turn to EnterSolar for your solar project. We are a company that has been at the cutting edge of the solar industry for more than 12 years, providing turnkey solutions that help businesses lower energy costs, increase property value, make smart investments and meet sustainability goals. Contact us today for a free solar assessment.