How Small Businesses Can Benefit from Solar Energy?

How Small Businesses Can Benefit from Solar Energy?

With rising utility prices and a considerable decrease in the cost of buying and installing solar systems, solar power has become a sustainable and cost-effective energy alternative for business owners. Although many small and medium-sized companies are still in the process of understanding how solar energy can make sense for them, more than 100 of the Fortune 500 companies have already received significant results by using solar power. The list includes well-known enterprises such as Walmart, Target, Apple, IKEA and Intel, but many smaller businesses and even non-profits are embracing solar as well. Total Solutions is available for all business type solar installations.

Installing solar power systems from Total Solutions might seem like a significant investment initially, but it can provide multiple advantages in the long run.

Why should you consider solar panels for your business?

Energy Cost Savings

Energy savings from solar can be substantial. Reports read by Total Solutions marketing team suggests that the average commercial property owner in the U.S. can reduce overall energy costs by 75 percent by going solar. According to the report, the average commercial property owner paid $1,950 in monthly electric bills before going solar in their operations. They paid just around $500 after installing solar energy systems.Most business see no payment to the utility companies when installing a system from Total Solutions.

Businesses can enjoy the benefits of solar without making an investment through a Power Purchase Agreement (PPA). The solar provider agrees to supply energy to the customer at an agreed upon rate for an extended term, such as 20 years. REC has used the PPA approach to help non-profits such as churches lock in energy savings over the long term. REC and other vendors also offer lease and cash purchase programs.

Free Source of Electricity in the Long Term

Total Solutions infographics show that businesses pay off their solar panel buying and installation costs in three to seven years. The real benefit of going solar starts after that period as businesses can enjoy free electric supply for 25 to 35 years, the lifetime of the solar system. Buying and installing solar systems from Total Solutions is like prepaying 25 to 35 years’ energy bills. Solar systems come with long warranties. Most module manufacturers offer a 25-year performance guarantee. To us, that speaks volumes about the reliability of the products.

Solar Panel Installation

Federal Investment Tax Credit (ITC)

Owners of newly installed solar systems receive a federal tax credit equal to 30 percent of the cost of the solar system as of 2016. Several states also have tax credit incentives.

Accelerated Depreciation

Businesses can deduct 85 percent of their solar investment in the first year as of 2016. As a result, they can significantly offset the upfront cost of a solar system array.

Reliable and Maintenance-Free Energy

Solar energy systems require little to no maintenance. When you think about it, there are no moving parts. When people think about solar, they normally think about fixed tilt systems. They’re installed on a rack. Nothing moves. However, Total Solutions does offer panels that can be installed on an angle for maximum solar penetration.

Going Solar Supports a Green Business Approach

By avoiding non-renewable energy sources, companies can create an environmentally responsible image and help support green business aspirations.

Cost of Solar Energy for Businesses

Solar panel prices have dropped more than 80 percent since 2011. Most small businesses don’t have to spend any money upfront because most solar energy system providers offer flexible options like solar loans, solar leases and PPAs. These flexible investment options make it possible for almost anyone to go solar. Total Solutions will not require any upfront payment on the system.

The costs of solar energy systems for businesses depend on the energy demand of the firm. As a result, the cost can vary significantly from one operation to another. A 30kW solar power system is ideal for most small- to medium-sized businesses. It can cost around $75,000 to buy and install a solar system of that size as of 2016. Many small businesses can go for 10kW solar power system for around $46,000 after deducting the federal solar investment tax credit, the state tax credit and cash rebates.

The federal ITC, state tax credits and cash rebates usually reduce the solar system installation cost by about 45 percent. When it comes to output, the cost of per-watt energy with larger solar systems tends to decrease.

Factors That Determine the Cost of Solar Panel Installation

A variety of factors determines the cost of solar panel installations. The energy requirement of your business is the most important. The cost will also be influenced by the quality and attributes of the system installed. Not all solar panels are created equal.

We here at Total Solutions have relationships with a wide variety of vendors. We’ll look at the goals our customer has. Do they want to maximize the speed at which the system produces kilowatt hours, or do they want to optimize the speed at which the system pays itself off? We work with you to determine the right array. These things influence system size and cost.

The cost of solar permits and labor are two other factors that determine the ultimate cost of solar installation. Businesses must pay a minimal fee to have the solar energy panels connected to the grid, and installation requires a significant amount of manual labor. The roof on which you want to install solar panels is another factor. It can be very easy and straightforward with some roofs, but a steep roof pitch can make it difficult to install solar panels.All of the details will be gone over in your one on one consult with Total Solutions.

What Specific Industries Can Benefit from Solar Energy

With falling costs, generous grants, and tax incentives, businesses of all types are in a great position to take advantage of the benefits of solar energy. By installing a solar system, manufacturing industries, agricultural operations and commercial businesses can save on electricity costs, take control of future energy price increases and reduce their tax burden.

Here are some examples of how these different industries can benefit from solar energy:


The manufacturing process generally uses a substantial amount of electricity, which makes a manufacturer an excellent candidate for solar energy. In addition, manufacturers typically operate in large buildings with a lot of available roof space for a solar system. Solar energy will save a manufacturer thousands of dollars over time on electricity costs and provides a hedge against energy price increases which will make a manufacturer more competitive. Tax incentives, including the 30% federal tax credit, make the return on investment very attractive.


Agricultural operations, such as poultry and dairy farms, also use a lot of electricity and typically have lots of sunny, available roof space. For example, a chicken farm requires electricity to run fans and must maintain a consistent temperature throughout the year. A roof mounted solar system allows the business to switch from electricity generated by the utility company, to clean electricity generated on site. Tax incentives and generous grants from the U.S. Department of Agriculture make solar energy systems from Total Solutions a very sound business decision.


A commercial business, such as an office building or department store, will see a similar return on investment as a manufacturer or farmer. If you have available roof space and would like to take control of your electricity costs, you are a perfect candidate for solar energy. Also, if you are in a rural area, you may be eligible for grants from USDA.

Once you set up your appointment with Total Solutions, we will be able to assess all the options and best system to maximize your savings and boost your solar energy!

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