There was a time when plant managers and executives immediately dismissed the idea of supplementing a business’s energy needs with a renewable power source like solar. Over the past twenty years, however, there have been enormous gains in the output, cost-effectiveness and lifespan of photovoltaic cells, and that has many businesses reconsidering solar energy’s place as a viable alternative to more traditional, non-renewable sources of energy. For many companies, the advantages of using photovoltaic cells to meet all or part of their power requirements have become too tempting to ignore.
Before the 1990s, most commercial enterprises steered clear of solar panels for the following reasons:
In other words, commercial solar power used to be expensive and unreliable. Most companies that dabbled in solar power at the time chose to do so to make the claim that they were committed to green energy.
From the turn of the 21st century, however, new methods for constructing photovoltaic panels have made them both cheaper and higher yielding. Additionally, the degradation of photovoltaic cells is slower, so they convert sunlight to electricity over a longer period of time before they need to be replaced. When you combine these improvements with pro-solar initiatives, like net metering and tax incentives offered by the Federal Government and many states, most of the concerns of the past have been mitigated.
Commercial solar power works well for businesses of all shapes, sizes and in different climates, but the benefits will vary depending on a number of factors. Here are three reasons why you should think about upgrading to a solar power system:
If you’re wondering whether or not you should get solar panels for your business, you’re probably also interested in what makes them work. Having a rudimentary understanding of the science behind photovoltaic panels will make you a more knowledgeable consumer when discussing options with a company that performs solar panel installation for businesses.
Certain materials, like the silicon found in 90% of the world’s solar panels, are photoemissive, which means they tend to shed electrons when exposed to light. Solar panels can be constructed with sheets of silicon film (thin-film panels) or from lines and rows of crystalline silicon wafers (monocrystalline and polycrystalline panels). Panels are physically arranged to maximize their exposure to the sun. The exterior materials are non-reflective because reflected light won’t interact with the photoemissive material in the panel.
The inside of the panel, however, does have reflective material, so light trying to leave the system is returned to the photoemissive material. When sunlight interacts with the panel, the photoemissive material (usually silicon) yields its electrons, creating an electric current. Other layers of materials and chemicals are often added to maximize the electron flow — and consequently, the electrical output — of the panels.
Solar power output is limited only by the number of panels and the amount of available sunlight. With enough panels and a steady source of light, a solar power plant can meet all of the power needs of even a large facility. Solar fields are often placed on rooftops, so the larger the facility, the more panels it can accommodate. A solar panel installer can calculate the number of panels and estimated output depending on the space you have available.
In the past, solar panel systems would rely on a bank of batteries to store electricity generated from the sunlight. That way, businesses could still operate at night when the sun wasn’t shining. Most modern systems are now connected directly to a utility company power grid. The electricity that the solar panels produce powers the lights, office equipment and other machinery. If extra electricity is generated, it gets fed into the power grid. At nighttime, when the solar panels are unable to convert sunlight to electricity, the business draws electricity from the grid.
Net metering refers to a system using a two-way meter that tracks electricity as it goes into and out of the business. If at the end of the billing period, the business has used more electricity than it produced with its solar panels, the utility company will send them a bill — albeit a much smaller bill than if the company relied solely on utility power. If, on the other hand, the same business produces more electricity than it consumes throughout the course of the billing period, it will receive a credit from the utility company. Because of this system, it’s virtually impossible to run out of electricity during times of heavy consumption and inclement weather.
The Public Utility Regulatory Policy Act (PURPA) requires energy utilities to purchase portions of electricity from renewable sources. So, any excess electricity that your solar power system produces can be sold back to your local utility.
Solar power will invariably save money for your business, but as with any major upgrade to your plant and equipment, the results will depend on a number of variables. Before you start taking bids from commercial solar installers, you will want to give some consideration to the following factors:
It’s also important to make a determination as to how long your business will be at its current location. Because licensed installers should handle removing and re-installing photovoltaic cells, it can represent a significant expenditure. If you anticipate your facility changing in the next few years, you may also want to delay your conversion until after the move.
Whether you’re the president of the company or you’ve been tasked to look into the viability of solar panels for businesses, it’s important to know at what point the solar panels will pay for themselves. The payback period, or break-even point, is dependent on a number of factors, including:
A professional solar panel installer should be able to help you approximate your break-even point, but the calculation isn’t difficult. To determine your solar panel payback period:
It’s important to remember that you will begin realizing savings the minute your solar energy system goes online, as you will no longer be paying for any electricity that it produces.
There are still other factors to consider when it comes to whether or not to install solar panels. Here are some frequently asked questions:
Thin-film solar panels are less expensive, but they tend to degrade at a slightly faster rate, have lower output and don’t work as well in warm weather. The lower output means you may end up buying more thin-film panels to yield the same electricity as crystalline panels, which can be problematic if you don’t have as much space. Conversely, both monocrystalline and polycrystalline solar panels work well in the heat, last longer and produce more electricity, but they also cost more.
If you’re under the impression that solar energy is a niche industry best suited for small boutique-styled businesses, you may want to take a look at which companies are investing in photovoltaic cell systems to help power their businesses. Walmart, for instance, is the nation’s leading solar panel investor, boasting 348 solar installations, providing 142 megawatts of electricity. In 2015, the top 25 solar corporations had 1,462 installations for a combined 757 megawatts of renewable electricity generated from sunlight.
If you’re considering joining the thousands of businesses that have already made the conversion to solar power, you should consult a licensed commercial solar installer in your area. If you’re located in PA, MD, NJ, DE, NY, MA or CT, contact us to schedule a consultation.
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