The global coronavirus pandemic has made commercial and industrial establishments realize that going solar is one of the best ways to cut down operational costs especially with industrial solar power systems. 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 solar company 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 solar power companies install solar systems 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 tariffs 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 panels 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 an increase in grid tariff in 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 is done through “Net-Metering” – electricity received is offset with the electricity supplied and net surplus or deficit is billed as required. Many commercial solar installation company 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%.
Green portfolio:
In the time of climate change and its impacts on everyday life, renewable energy sources like solar energy for industrial business are highly promoted to phase out use of fossil fuels. Installation and use of solar systems directly express a business’s behaviour 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.
Cooler roof:
Most of the commercial solar power companies in India have metal sheet roofs or a concrete slab roof. Solar panels can reduce the heating effect inside when placed on the roof. Direct solar radiation and heat get 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, making solar power for industrial use a viable solution. At FreyrEnergy we can help you with the installation and commissioning of a solar power system on your commercial or industrial rooftop solar.
Frequently Asked Questions
Rooftop solar for industries is an ideal way to reduce operational costs. The reduced operational costs due to solar installations are evident in industrial solar power system and commercial solar systems. It has eventually led to a surge in demand for rooftop solar systems by most businesses.
Companies with solar installations could generate income even in the COVID-19 lockdown by selling the surplus energy produced by their solar systems to the electricity grid. Not only that, these companies even paid salaries to their staff during COVID-19.
Household solar systems can avail of government solar subsidies offered by the central or state. Commercial & industrial solar systems may get tax benefits. A business is entitled to benefit from accelerated depreciation of 40% under Section 32 of the Income Tax Act.
Consumers are increasingly concerned about sustainability and adopting renewable energy sources like solar systems. Businesses can leverage this to promote their products and support the cause of the green planet.
When all operations were shut down during lockdowns, businesses with solar power installations could make a profit by selling solar energy to the electricity grid and making profits.
Solar panels last for about 25 years operating with full efficiency.
When you compare the value and profit a rooftop solar system offers, you will find the price very affordable. A commercial rooftop solar may not come with a government solar subsidy; however, you get income tax benefits on it.
Freyr Energy can assist you in installing and commissioning a commercial and industrial solar system. The company has been instrumental in installing solar systems across India in various cities.
Solar panels when placed on the rooftop can prevent the area below it from overheating. They act as a barrier between the harsh sunlight and the roof, keeping the area under it cooler. It results in requiring low cooling inside the building, preventing additional usage of energy.