The global corona virus pandemic has made commercial and industrial establishments realize that going solar is one of the best ways to cut down operational costs. Switching to solar has helped companies save money and remain operational during the lockdown.
Establishments that have installed solar unanimously agree that going solar helped reduce operating costs drastically. There has been an increase in demand for rooftop solar systems from the Commercial & Industrial segment over the last few months.
Some of the commercial and industrial establishments with net metering facilities, who shut down their operations during the nationwide lockdown, were able to generate income by supplying unused power generated by the solar systems back to the electricity grid. Companies affected by the lockdown could sustain their businesses and even pay salaries, thanks to their rooftop solar systems.
Five reasons for commercial and industrial establishments to install solar system on their rooftops or any feasible area:
Shield against rising electricity prices:
The electricity prices for industrial and commercial consumers are always high as compared to residential consumers. Grid electricity prices are always in a rising state.
This can also be rechecked by reviewing electricity tariff in past decade. Solar panels for industrial use in India are an economically beneficial choice and industries paying high tariffs can benefit and are benefiting largely from it.
In brief, working life of solar panel is 25 years and grid electricity grid prices will increase in 25 years. However, a solar panel generates electricity at the same price for 25 years protecting you from increase in grid tariff of the future.
Reduce operational expense via net-metering:
When electricity generated by solar panels is more than it is consumed in the commercial or industrial establishment, the extra power generated is supplied back to the electricity grid and power supplier pays for the electricity supplied to the grid. In technical terms this done through “Net-Metering” – electricity received is offset with the electricity supplied and net surplus or deficit is billed as required. Many industries and commercial establishments are making use of this scheme and reducing their operational costs.
Tax savings from accelerated depreciation:
Unlike domestic solar systems where subsidy is available from central or state government, non-domestic solar installations get tax benefits. Under Section-32 of the Income Tax act, the consumer can benefit from accelerated depreciation of 40%.
In the time of climate change and its impacts on everyday life, renewable energy sources like solar energy are highly promoted to phase out use of fossil fuels. Installation and use of solar systems directly expresses a business’s behavior for its corporate social responsibility (CSR). Being sustainable in its own existence or operations and tagging the same on end products and services can benefit marketing of the same.
Most of the commercial and industrial units in India have metal sheet roof or a concrete slab roof. Solar panels can reduce the heating effect inside when placed on the roof. Direct solar radiation and heat gets a buffer from array of solar panels. resulting in roofs not getting directly heated under the sun. Hence, low cooling is required inside the building lowering the energy consumption.
Solar panel system for C&I establishments in India is a sustainable option, economically attractive, socially empowering and environment friendly. At FreyrEnergy we can help you with the installation and commissioning of a solar power system on your commercial or industrial rooftop.