As Australia, and the world as a whole, moves towards a more sustainable future, many businesses are considering solar energy as a viable option for powering their operations and are therefore installing a solar system to generate electricity for them. Whilst there are certainly environmental benefits to making the switch to solar, it is also important for businesses to consider the financial factors that apply to such a move which we will explore in some detail in this blog post.

Upfront Costs

Firstly, businesses need to consider the upfront costs associated with installing a solar energy system. Whilst the cost of solar panels has come down significantly in recent years, the initial investment required can still be substantial, especially for larger businesses that operate within large commercial premises. Some incentives may apply, and special commercial loans specifically for environmental projects might be available.

Your Location

If you are considering solar panels,  the location of your business is another important factor to consider when evaluating the financial feasibility of proceeding. In general, if you are located in an area with higher levels of sunlight it will generate more solar power, making solar more cost-effective. However, factors such as shading from nearby buildings or trees can also impact the amount of solar power your system can generate.

Energy Consumption

To get a sense of whether a solar energy system is financially feasible for your business, you will need to consider your current energy consumption. This includes not only your current energy usage but also any expected changes in the near future. One point to consider is whether the amount of electricity your business uses is significant enough to create bills that are large enough so the savings realised from solar energy would justify the cost of having a solar system installed.