Making the Business
Case for Solar Power

Generates electricity for you with zero
variable cost

Making the Business Case for Solar Power

Could an investment in solar power systems be right for your company? Regardless of your industry, replacing your monthly electricity bill with a solar power system that generates electricity for you with zero variable cost is a sensible investment that can pay dividends in the long-run.

If you’re preparing to make the business case for solar power at your company, you’ll need to demonstrate a positive return-on-investment, create a plan for operating and maintaining your solar power system and outline the strategic benefits of powering your business with renewable energy. To make it easy for you, we’ve created this cheat sheet that contains all the information you’ll need to explain the benefits of solar power for your business and why it makes sense to invest now.

Minimal Operation and Maintenance Costs

Solar power systems are characterized by low cost of operation and minimal maintenance costs. Our solar panel installations come with very few moving or mechanical parts, and fewer mechanical parts means there are fewer things that can break. Besides an annual inspection and cleaning, which can cost as little as $3 per panel, solar panels require essentially zero maintenance throughout the year.

Solar panels are also highly durable and very unlikely to be damaged by falling branches, raining ice balls, high winds, or whatever else mother nature has to offer.

Long-term Warranties and Service

Solar power systems are available with two types of warranties: one for the equipment itself and one for its performance. An equipment warranty will guarantee that the system does not fail for a set period, while a performance warranty guarantees a specific level of production efficiency throughout the solar power system’s life cycle. Together, these warranties provide commercial organizations with the security and confidence they need to invest in solar power. If there is a problem with the equipment during the warranty period, which usually covers the pay-back period for the system, the repairs should be covered under warranty and free of charge.

Reduced Energy/Operational Costs

The primary benefit of installing solar panels for your farm or business is that they can allow you to produce your own electricity automatically and with no variable costs, leading to significant reduction in your monthly electricity bills. Depending on how much electricity your company uses on an annual basis, a solar power system could even reduce your electricity bill to zero.

Rate Protection and Reduced Risk

Electricity rates fluctuate, but like the prices of most other goods and commodities, they tend to increase over time to keep in-step with inflation and other cost-of-living increases. Even if your electricity usage remains the same, chances are that your bills will cost a little more in five years, and a little more in five years after that, and so on. If electricity rates rise by just 2% a year, an annual electricity cost of $5000 would grow to nearly $6100 after a decade. In the past, we’ve observed year-on-year rate changes of up to 15% or more.

Solar power is an excellent way to limit your exposure to increased electricity prices and protect yourself from rate increases. If you can produce enough energy to power your business with your solar power system, your business will be protected from the volatility of energy markets.

Tax Incentives and Rebates Programs

Businesses in Saskatchewan can take advantage of special government rebates that make it much more affordable to invest in a solar power system. There are specific business incentives set up to make it more affordable for industry to invest in clean energy projects. Renewable energy projects receive special terms and consideration under Classes 43.1 and 43.2 in Schedule II of the Canadian Income Tax Regulations. Solar power systems benefit from capital cost allowance, which allows businesses to write them off at 100% in the first year.

Businesses can also take advantage of the one-time net metering rebate, which typically covers around 20% of the total installation cost of a new solar power system, up to $20,000.

Financing or Leasing Options to Reduce Up-front Costs

Some companies balk at the up-front cost of ownership for solar power systems, and understandably so. Many solar installation companies offer attractive financing options that can make it easier to start investing in solar.

Financing your solar power installation simply makes sense – you can replace your monthly electricity bill with a monthly payment towards your solar power system. It’s more than likely that doing this will improve your cash flow, so you’ll be spending less money per month than before. In just a few years, you’ll finish paying off your solar system installation and you’ll still have zero electricity costs every month – now that’s a smart investment.

Green Your Brand and Business

Consumers are increasingly choosing to do business with companies that demonstrate a commitment to environmentally sustainable practices. Your investment in solar power can be incorporated into your brand identity and leveraged into a powerful selling point for your products or services. Depending on your industry, powering your business with solar energy can act as a key differentiator that sets you apart from your competitors in the minds of prospective buyers and makes consumers more likely to choose and remain loyal to your company.

Are You Ready to Go Solar?

At Go Solar Sask, we’re passionate about helping Saskatchewan’s leading commercial organizations make the transition to solar energy. Whether you’re upgrading a commercial building or setting up a solar array for your agricultural property, we’ve got the know-how to handle your installation from start to finish. Learn more about what we have to offer: