So, Minnesotans, you may keep on hearing about the great return on investment (ROI) offered by commercial solar power systems. But how do you measure the value of solar to your business anyway? Never fear – we’re here to break it down for you step by step!
How Cedar Creek Energy Determines The ROI Of Solar Energy
Cost and ROI are important considerations when deciding whether to install a commercial solar energy system. But we are here to tell you that when it comes to solar, the whole is a lot greater than the sum of its parts! As well as helping you reach corporate sustainability targets and adding tangible value to your brand, a solar panel installation will help you save big on energy costs. Pricing and incentives have come a long way since Cedar Creek Energy first opens its doors back in 2007. As well as the state’s own highly competitive incentive schemes, the Inflation Reduction Act has heralded a new dawn for solar power. Most importantly, it replaces the old Investment Tax Credit with the Clean Energy Credit (CEC), which offers Minnesotan businesses a 30 to 60% tax credit on a solar panel installation’s total cost. For a project costing $250,000 this means a saving of up of to $150,000! With all this in mind, let’s do the math…
The Big Solar Payback…
Green Building Elements estimates businesses paying on average $1000 per month in energy bills could save as much as 75% of this by installing a commercial solar power system. In this scenario, the solar panel installation’s upfront cost could be paid off completely within 3 to 7 years. Over a 25-year project life that translates into a lot of free electricity! Does this sound too good to be true to you? Let’s look at a couple of actual real commercial solar power projects Cedar Creek Energy has completed in recent times. Our solar power installation for HOM furniture’s Rogers location now generates over 670,000kWh – nearly 60% of all electricity use! Our solar power project for the City of Becker’s Wastewater Disposal Center generates 1,000,000 kWh per year, saving the city approximately $100,000 annually. But remember…
ROI Is an Art Not a Science
There are many, many variables which will impact your business’s ROI on a solar panel installation. No two solar power projects are the same, and several factors affect the amount of energy generated. From the level of sun exposure at a site, to how much electricity a facility uses and when. There are also various federal, local, and utility rewards and incentives that many businesses can qualify for that would get your system cash flowing quicker. Another point to consider is electricity prices in your area. In the likely event that utility prices go up, so will the amount your commercial solar power system will save you on electricity – leading to greater ROI. And as Minnesota finalizes legislation which would require 100% carbon-free energy by 2040, the cost of fossil fuels is getting higher – in more ways than one! Another, harder to pin down quantity, is the impact embracing a more sustainable business model will have on your brand over the next few years. Research has shown that consumers and investors want brands to take sustainability seriously – and they are willing to vote with their feet. As an Environmental, Social, and Governance (ESG) mindset takes over the market, how long can your business afford not to invest in renewable energy? And unlike other forms of renewable energy, there is a straight through line between your solar panel installation and the energy powering your business. All of this gives you solid green credentials with your clients and stakeholders!
So, What Will Your Solar Project’s ROI Be?
To find out what solar power can give back to your business, just get in touch. We work with all types of different buyers for solar. No matter if you want to pay cash, finance, or use a short-term loan. We know you don’t want another payment – and knowing that every solar power project is unique, we’ll work with you to find the best possible solution for you. Here at Cedar Creek Energy – officially one of Minnesota’s best – we’ll be happy to help!