Managing sustainability in your business can also save money
Should the use of clean energy options such as solar be a business priority, when Covid -19 has thrown up so many other challenges? Should the purchase of a solar system be delayed or pursued right now?
Transitioning to solar power in your business be at commercial premises or at your home office is not a costly problem at all. It may be the solution to many of your current financial considerations.
This is even more important when one considers that a typical manufacturing company spends around 5 to 10% of its budget on energy each year. So maybe commercial solar can be the answer.
While most businesses and customers understand the environmental benefits of renewable energy, the commercial benefits of being more sustainable and energy-efficient may be less obvious.
But there are clear benefits of reducing greenhouse gas emissions not only to the environment but also for your business.
Due to many government benefits such as the instant asset write-off for business, one can reduce the ongoing expenditure for energy bills, while at the same time gaining favorable tax treatment for your business.
“We have seen some business owners with a high energy use, recoup the cost of their solar investment in as little as 30 months, ”said Don Quattrocchi, the owner of DQ Solar & Electrical. DQ is located at 24/28 Port Wakefield Rd, Gepps Cross SA 5094.
“In these times of low-interest rates, a return of plus 35% per annum is pretty unique, but when one buys solar, and especially a high-quality solar system can achieve exactly that outcome. We can give you a financial analysis, based on your electricity consumption package”.
Many business owners do not even know their average electricity bill, and how much profit they forgo because electricity and gas bills are paid via the administration staff,” he concluded.
Electricity use is a big cost to companies
Mounting energy bills in Australian states and territories is a massive ongoing strain on companies of all sizes.
South Australia and especially Adelaide have seen some of the highest electricity price increases over the past decade. The local price of electricity is now one of the highest in Australia and even one of the most expensive costs per kWh in the world.
For smaller businesses, the cost of maintaining the lights on is one of the larger costs and it seems to be becoming more and more costly to connect to the mains power grid.
Larger companies often feel the pinch, in particular, factory and processing activities that use machines day and night.
Other more general businesses in office and retail operations see their highest electricity consumption in the areas of lighting, computers, electric hot water, air-conditioning, and heating.
As many of these office activities take place during the day, solar power again can be a great cost saver, as renewable energy is created at the same time it is consumed.
Energy costs started to increase and since 2003 energy prices have risen by around 60%, which is why more ROI-focused businesses are turning to solar power to eliminate rising energy costs.
In Adelaide, a relatively small 6.6kW solar installation will generate around 10200 kWh per annum or a daily average of 27.95kWh.
This amount of solar energy generation saves you an estimated $500 off your quarterly bills in Adelaide, due to the supply of the electricity to the premises and the export income for electricity going to the grid, called the Feed-in tariff (FIT).
Therefore a solar system will save real money.
In regards to specific months the Adelaide average 6.6kw solar power system is as follows:
Jan – 1345 kWh | Feb – 1180 kWh | March – 948 kWh | April – 668 kWh | May – 460 kWh | June – 371 kWh | July – 409 kWh | Aug – 565 kWh | Sept – 755 kWh | Oct – 999 kWh | Nov – 1215 kWh | Dec – 1312 kWh
The solid financial return for quality solar systems does not only apply to business owners who own their premises, but also to business owners, who rent.
This will work well if you have a long-term lease because the solar will generate a profit as soon as three years after purchase.
Smart business owners might also want to negotiate with their landlord to have a solar system supplied free of charge as part of lease renewal negotiations.
Furthermore, those businesses who see an increase in power consumption over the years, as their business grows, can add to their solar system size capacity.
With more solar panel system capacity they will be able to push their bill down even further, leading to the long-term possibility for a business’s operations being completely self-sustaining.
This is all possible when using solar energy combined with battery storage.
Consumers focus on helping Environmentally Responsible Companies
This means that those who are viewed as not environmentally conscious may receive lower sales and leads in comparison to competitors.
However, the use of renewable energy as a main source of power can be able to improve customer perception of a business, which as shown above, is able to increase customer loyalty and customer base.
A study in Australia has found that 85 percent of customers want their industries and corporations to be more open in their greener activities, whereas 90 percent are more likely to buy responsible and sustainable goods.
This means that if customers are able to observe the environmentally-focused decisions that a business is making, they will be more inclined to continue or begin interactions with the business.
No matter what kind of company you are, solar panels on your roof are an easy and efficient flag to convince customers that you are making a difference.
In the meantime, your business should still integrate other positive initiatives such as environmentally friendly and recyclable packaging in the hopes of turning your marketing strategies around and presenting yourself with a ‘greener’ touch.
To gain also a visual marketing effect from your new solar power system your business can install an all-weather camera on the roof near the solar system.
This video system can then broadcast the system image and provide evidence to customers that you are generating and using renewable energy.
This weatherproof camera could film the solar panels on the roof system and the footage could then be generated onto a monitor that is presented at the reception or a waiting room.
Together with a visual monitor solution showing real-time kWh generation will allow customers to really view the positive impact your business is making on the environment.
Make use of solar offers and discounts
You will get various State and Federal Government rebates and incentives from suppliers of solar panels in Adelaide to minimize the cost of installing solar at your premises.
In certain cases, you can get them installed at a very low upfront cost, for example when finance gets involved, which DQ Solar and Electrical can supply.
For instance, solar installations in Adelaide not only get the Federal Government solar rebate, but also special incentives through the South Australian State Government.
On top of these solar incentives, there is as mentioned previously the Instant Asset Write-Off policy.
This policy states that in the year the asset is first utilised or installed and ready for use, eligible firms can claim an immediate deduction for the business portion of the cost of the item.
This means that if the business were to proceed with a solar system installation, the policy can be implemented and the solar system price can be deducted and claimed back through tax.
If you are looking for a reliable solar system installation firm that is located in Adelaide contact DQ Solar and electrical.
Then your business will be ready to experience cheaper electricity bills as well as sending a positive message to your customer base.
If these solar options of business seem interesting, why not request a free site inspection or a solar quote from DQ Electrical via our website or call us on (08) 7160 0127.