Curious about getting solar for your business but just can’t make the decision? Well, Over the last 10 years, Genie Solar has spoken with hundreds of business owners, and we’ve heard all the reasons and objections that are holding people back from a decision that will save them millions in the long run. For all these objections, there is a response, so we decided to share them all with you.
In this blog post, we will address the top 8 objections we hear about getting commercial solar installed and provide our response and insights to may just help you make the best decision for your business.
#1: Upfront Cost
One of the primary objections to commercial solar that we hear is the upfront cost. It’s true that installing solar panels requires a significant investment, but the long-term benefits outweigh the initial expenses. To overcome this objection, our team always shows a cashflow model of a few different options that show how we can pull off the project while still making sense financially. These cashflows models include a cash option, PPAs (Power Purchase Agreement), or operating leases, because it’s important to consider all options.
Another sometimes overlooked factor that can reduce the upfront costs are government commercial solar incentives. Right now, federal and state programs are extremely generous to commercial solar projects. Depending on your state and business, you can see 30% to 50%, or even more, of your upfront investment returned to you as a tax credit or grant.
Commercial solar is a great long-term investment, but we know that it only makes sense if the financials work.
#2: Concerns about Return on Investment (ROI)
Concerns about the return on investment (ROI) are common among businesses considering solar installation. It’s important to note that the ROI of commercial solar panels depends on various factors such as system size, energy usage, available incentives, and utility rates. By conducting a thorough analysis of your energy consumption and potential savings, our team can estimate the payback period and projected ROI. Numerous businesses have achieved significant financial benefits and recouped their investment in a relatively short time, making commercial solar a worthwhile venture.
In fact, our client Integra Biosciences saw an incredible ROI and IRR. By leveraging the ITC, tax depreciation bonus and RECs, they were cashflow positive in just 4 years and saw an IRR of a whopping 22%.
#3: Lack of Awareness
Many businesses are simply unaware of the benefits and potential cost savings associated with commercial solar energy. By educating yourself about the advantages, you can make a more informed decision. Our team can provide detailed information on how solar power can reduce your energy costs, enhance your brand’s sustainability image, and align with your environmental values. Additionally, there are various resources available online that provide comprehensive guides and case studies, helping you better understand the positive impact of commercial solar energy.
#4: Building Ownership
This is a very common one. Commercial solar has huge benefits for all business owners, but not all business owners are building owners. For businesses that operate out of leased or rented spaces, obtaining permission for solar panel installation may be a challenge. In such cases, it is crucial to communicate with the building owner or landlord and highlight the benefits of commercial solar. Emphasize the potential increase in property value and the positive environmental impact. In this case, it’s crucial for the business owner and the building owner to work together as the benefits of commercial solar will help both save money.
#5: Complex Decision-Making
The decision to install commercial solar panels can be complex, involving multiple stakeholders and considerations. Businesses may be concerned about potential disruptions to daily operations, or the coordination required for successful installation. At Genie Solar, we completely understand this. That’s why we like to include all the key stakeholders throughout the process. Will this take more time or initial coordination? Perhaps. But we find that the earlier the whole team is together the sooner everyone can be in alignment on the goals of the business and determine any other key considerations that the solar install needs to achieve.
#6: Uncertainty about Future Energy Prices
Fluctuating energy prices and market conditions can make businesses wary of committing to commercial solar. However, solar energy provides stability and insulation against rising energy costs. By monitoring and predicting energy market trends, you can make informed decisions about the long-term financial benefits of commercial solar installation. Over the last few years, we have seen massive increases in commercial energy costs. Predicting the future can be hard, no one has a crystal ball, but we do know that with the increases in demand the impact it’s having on our state’s infrastructure and grid can only mean prices will continue to rise. How much? We don’t know, but our best estimates forecast an average increase of 3-4% each year.
#7: Aesthetics and Building Design Concerns
Concerns about the visual impact of solar panels on the building’s aesthetics are valid. Businesses want their properties to maintain an attractive appearance. Fortunately, solar has become more than just aesthetics. These days, having solar on your roof is a symbol of strength and financial security. It communicates to your employees and customers that your company has invested in a clear, reliable energy that will save you money in the long run. It may be the only visual design component of your building that boosts your brand and saves you money.
#8: Maintenance and Reliability Concerns
Concerns about maintenance and reliability are important considerations when investing in commercial solar. It’s essential to choose a reputable commercial solar installer that offers reliable products and comprehensive maintenance services. Most commercial solar systems require minimal maintenance, with occasional cleaning and inspections. Reputable installers provide warranties and ongoing support to address any potential issues promptly, ensuring the smooth operation and longevity of your solar energy system. Finding an installer, like Genie Solar, who has the financial strength to be around for the life of the system is extremely important.
More Objections?
Understanding the financial benefits, exploring financing options, and understanding your business’s goals have allowed our team to overcome these objections and unlock the numerous advantages of commercial solar for our customers. Commercial solar offers long-term cost savings, environmental sustainability, and enhanced brand image, making it a valuable investment for businesses. Have any other objections or concerns about commercial solar? Let us know! We’d love to hear them!
