The global pandemic coronavirus has made industrial and commercial businesses understand that going solar is one of the most guaranteed ways to chop down operational prices. Turning towards solar energy has helped many companies save money and continue their operations even during the lockdown.
Companies that have adopted solar energy unanimously agree that shifting to solar has helped them drastically reduce their operating charges. There has been a subsequent boom in demand for solar systems from the Industrial and Commercial divisions over the last few months.
Some of the industrial and commercial businesses having net metering facilities, which have to shut down their services and operations during the national lockdown, were able to generate revenue by supplying extra surplus power generated by the commercial solar systems back to the electricity grid. Organizations affected by the lockdown could have sustained their businesses and were even able to pay salaries, all credit goes to their solar systems.
The rooftop solar system is among one of the cheapest origins of power, with approximately 50% lower tariffs than the grid charges in several states. The cost benefits of the segments make it an attractive option for renewable sources of energy amongst commercial and industrial (C&I) customers.
The slump witnessed in business during the pandemic time of Covid-19 has made C&I players recognize that shifting towards solar is one of the most reliable ways to reduce operational costs.
The cost of energy accounts for approximately 30%-40% of operational costs for C&I entities. With a drastic reduction in the prices of solar power over the years, it makes sense for companies to opt for solar energy to save extra expenses and to keep their businesses operational and afloat in these unprecedented challenging times.
Lowering the costs and cutting the extra expenses by going solar has become more essential for businesses, as improving the financial situation has become a huge challenge during these tough times of pandemic. There is a subsequent increase in the interest of allowing solar energy to be a part of life among C&I entities with a huge variety of business models to pick from.
So here are some of the reasons for commercial and industrial businesses to invest in a solar system by installing one on their rooftops or any feasible area:
Shield against escalating prices of electricity:
The prices of electricity for commercial and industrial customers are always high when contrasted to the electricity prices of residential consumers. The electricity prices of the grid are always increasing.
This can be rechecked by analyzing electricity rates in the past decade also. Rooftop solar panels for industrial application in India are an economically profitable option, and also the industries paying high tariffs can see subsequent see a cost reduction, and are benefiting considerably from it.
In short, the working life of rooftop solar panel systems is around 25 years, and grid electricity prices are estimated to rise in 25 years. However, a solar panel system produces electricity at the same cost for 25 years, saving you from an increase in tariff of the grid in the future.
Reduction in operational cost via net-metering:
When electricity produced by rooftop solar panel systems is more bounteous than it is consumed in the industrial and commercial establishment, the extra surplus power generated from solar systems can be supplied back to the electricity grid and the supplier of power have to pay for the electricity supplied back to the grid. In technical words, this is accomplished through “Net-Metering” – electricity drawn is balanced with the electricity provided, and net surplus or deficit is charged as required. Many enterprises and commercial establishments are making utmost use of this scheme and saving a lot by reducing their operational costs.
Tax savings from accelerated reduction:
Unlike residential solar panel systems where subsidy is provided from the central government or state government, non-domestic solar panel investments get tax benefits from it. Under Section-32 of the Income Tax law, the customer can benefit from an accelerated reduction of around 40%.
In the recent times of climate change and its devastating impacts on daily life, the use of renewable energy sources such as solar energy is highly encouraged to bring an end to the usage of fossil fuels. Installation and usage of rooftop solar systems directly represent the behavior of a business for its corporate social responsibility (CSR). Being sustainable in its reality or operations and featuring the same on end products and assistance can benefit the marketing of the same.
Naturally cooler roof:
Most of the industrial and commercial units in India are made of concrete slab roofs or metal sheet roofs. Solar panels can lessen the indoor heating effect when installed on the roof. Direct solar radiation gets a buffer from an arrangement of solar panels, dodging the roofs from getting heated directly under the sun. Therefore, low cooling is needed inside the building reducing energy consumption.
Solar panel system for Indian C&I establishments is a sustainable alternative, socially empowering, economically attractive, and environment friendly. But over the last few months, it is heartening to observe the demand for solar energy coming back, initially from the big industries followed by the SMEs and homes individually.
The biggest reason is that industries have more or less grasped the negative circle of COVID-19 and are rapidly moving towards normalization in their businesses. And solar system is one sure-shot means of achieving notable cost reductions in monthly operational costs. The additional reason is an eminent focus on sustainability and on overcoming dependency on the grid. They have learned that even with these costlier prices, the business case for solar rooftop panels is highly compelling.
The new year guarantees bright possibilities owing to a vital revival of activity in the 3rd quarter of 2021. The ongoing projects which were shoved back due to delayed or limited shipments from solar panel companies are now getting commissioned. And the latest pipeline of projects is also looking significantly more powerful. Several industry sectors such as auto, textiles, healthcare, pharma, logistics, and warehouse, etc. are quickly closing deals for new rooftop solar installments.