Economic Benefits of Commercial Buildings Using Solar Power

In the past, commercial building owners had to pay large upfront sums of money to install solar arrays and it was not economically viable for most people.  However, solar power has become much more affordable for commercial buildings due to the Connecticut Clean Energy Fund.  They are offering a DG grant for commercial buildings, which will award $2.00 per watt up to a 100 kW system and $1.25 per watt beyond that.  This will reduce the price by nearly a third!

An average 30 kW system size could produce approximately $6,000 worth of electricity in the first year.  The electric savings combined with the DG grant and tax incentives could produce a payback in 5 years or less.  In other words, it will take 5 years or less until the savings equal the cost.  Beyond that, the solar panels will result in raw savings especially since electricity costs average an increase of 5% each year.

In addition to cutting down utility costs, solar panels increase property value tremendously.  According to a study published in The Appraisal Journal, a property’s value is increased by $20 for every $1 reduction in energy costs.  On top of that, the US Department of Energy’s renewable energy office has found that property with solar panels will sell twice as fast as property without solar panels.  There are various renovations that commercial property owners could make in order to save money, but it’s hard to argue that solar power isn’t the top priority.