It’s that time, you need to renew your electricity contract with your utility company for your commercial facility. They just told you that your fixed rate contracts are to go up 25%. They tell you about Time of Use and how it will be good for your business, so you decide, let’s give that a try, it can’t be worse than a 25% increase. Maybe you’re right, maybe you’re wrong…but what is your other option?
Owning a business and its assets can be fruitful and emotionally rewarding, but none-the-less, it does come with its headaches, or growing pains. Your monthly expenditures can make or break a business at times. One of those expenditures that sometimes gets overlooked is your cost of electricity. If you’re a company that spends a couple hundred bucks on electricity, then maybe it doesn’t jump onto your radar. If you spend thousands of dollars on electricity though, then it’s definitely on your radar. If you are spending $5,000 or even $10,000 a month on electricity, and then the utility company says you need to pay them another 25% more this next year, that’s $15k to $25k of money that you now need to make up for in profit by the end of the year to make sure your books are balanced. The good thing is, you have options.
When your fixed costs of business increase, what do you do?
- Option 1: Increase your Revenue
- Option 2: Increase your Profits
- Option 3: Decrease your Variable Costs
- Option 4: Decrease your Fixed Costs (This is the one we suggest)
Now we don’t know your business so we can’t tell you how to increase your overall revenue, or how to become leaner by increasing your profits. We also don’t know what it takes to decrease your variable costs like marketing, because we would hate to see that have a negative effect on your revenue. What we CAN suggest is how to decrease your Fixed Costs.
Your fixed costs are the ones like your Electricity Bills. Up until now, these costs were out of your control. If the utility company says “pay us or we shut off your electricity” you find a way to pay them! There is a better way though. Instead of being at the mercy of the utility company, why not generate your own electricity through a commercial solar system?
By having your own solar power, you get to do two things: 1) you control more of your electricity and its associated costs; and 2) you get to have an asset on the books that help with taxes and overall company value. Now you might be asking, “Isn’t solar expensive?” That’s where having a great company like Solar Brothers comes in handy. We work with you to develop a solution that makes financial sense and gets you a great return on your investment. On average the typical commercial solar system has between a 4 – 7 year ROI with the majority being around 5 years. Imagine, your business is more profitable because you control your electricity, and you have also increased the value of your facility by investing in its own solar panels. That’s a great way to take control of your fixed costs.
Let Solar Brothers Do the Work
It’s not difficult to find out if getting solar is a smart financial decision or not. We take your current electricity costs, input that information into our design software, where we create a 3D rendering of your building and design a customer solar solution that fits your goals. Then we simulate production through the entire year based on all different data points such as location, direction, shading, LIDAR, equipment type and more. Once we get the numbers back, we plug those into our financial equations to see what your ROI and savings look like for the next 20 years. At the end, you get a clear picture of whether solar is a smart choice or not for your business.
It doesn’t matter if you are a retailer, grocery store, laundry facility, or something else. If you own the building, and are looking to lower your fixed costs, then we can help. Solar Brothers helps companies all over the United States go green and gain independence from the increasing utility rates by taking control of their electricity generation. Contact us to see if how we can help your business.