Why Some Businesses Still Refrain From Using Solar Panels?

Solar Energy: Is it the first choice yet?

Solar energy is an alternative means to get eco-friendly power. It also helps the user save money on the bills. Although, several business entities have still not installed the solar panels. Unlike residential buildings, business entities work from buildings that are owned on shares. In such cases, installing solar panels might not be a good choice. Moreover, both financial and technical drawbacks make most corporate companies avoid installing solar panels.

However, the stats say a different story that might seem contradictory to what was mentioned earlier.

As per the data published by Solstice, 1.6% of the total electricity generated in the U.S is based on solar power. It also states that the total solar power offset in America is 70 million metric tons of Carbon Dioxide. It is beneficial for the earth as it gives the result of planting some 1.2 billion trees.

When we come to costs, the Solstice study states that the price of solar packages have dropped by 70% than what it was in 2010. The expert views indicate that it would fall; more in the future.

Despite the stats, here are the key reasons why many business organisations have not yet invested in solar panels and rely on the traditional electricity connection for power.

Solar panels might not be an economical choice

If a business organisation works in a very small area, installing solar panels can be problematic. If the business has to deal with heavy power consumption, it might not have space to install multiple large-sized solar panels. Moreover, to use solar power for electricity, installation of other accessories cannot be done in small areas.

In such a case, the company can depend on the traditional electric supply rather than investing money in solar panels and taking solar power packages. In terms of performance, solar panels might fail to provide power to a building as a whole that has a small area but multiple stories.

Financial Drawbacks

There are many financial drawbacks when it comes to businesses installing solar panels. The charges of solar packages are dynamic in the leading countries and most businesses fail to sell the surplus solar power generated in a specific period. On the other hand, the suppliers take the surplus power from the business organisation and make money selling it to other consumers without paying the client business organisation.

The solar packages are not transferable and so are the solar panels. As a result, a business can experience a huge loss of capital while uninstalling the solar panels for transfer.

Generally, this problem does not occur in the case of electric supply as the power unit charges remain more or less the same all over the country. Moreover, it can be discontinued easily.

A business also avoids installing solar panels if it is located at a place that does not get adequate sunshine all around the year. Moreover, many US-based businesses are expecting a price fall of solar panels and avoiding immediate installation.

As per the charges of the solar packages, the business organisations have to pay more taxes in some leading companies than the amount payable to use electrical power. It is also a big reason why they avoid installing solar panels.

The solar panels might not be cost-efficient for businesses that consume a medium amount of power every month. In such cases, you might have to pay the same amount of bill for solar power consumption that you would have paid for electricity. So, investments in solar panel installation can become baseless.

Continuous Technological Advancements

Solar panels are going through continuous technological advancement and it can be a drawback for a business. Generally, the residential users install the solar panels as per their necessities but do not upgrade them from time to time.

However, a business has to upgrade the solar panels to get the best output as the powerful variants become available in the market. If you run a business organisation, you would probably choose the electric supply and never make multiple investments in buying solar panels.

Another fact about solar panels is the need for enough sunlight to generate power. So, business entities present in places that do not get proper sunshine annually can make no use of these panels. So, many entities are reluctant to install them.

Another reason why most business organisations avoid installing solar panels as it deteriorates the organisation’s aesthetic outlook. In most cases, the panels deteriorate the visual impact of an office building after installation.

Rigid Maintenance

Unlike electric supply, the process of maintaining solar panels is more rigid. A business organisation would never want to spare money on multiple maintenance sessions in an interval of a few months. Moreover, the panels can either degrade over time or stop working due to technical errors.

Furthermore, the solar panels work batteries that need regular change-over. It is another field in which a business organisation has to invest while using solar panels.

Questionable longevity

Solar panels come with questionable longevity and it gets tougher for businesses to make multiple investments. Even if the supplier provides a warranty period of twenty years, no business entities can consider solar panel installation as a one-time-investment.

Unfit for small business organisations

The solar power suppliers might turn down the approaches of solar panel installation by small businesses. The suppliers hardly install the solar panels on rental buildings. Large businesses with exclusive buildings can install solar panels and use alternative means to generate power.

Solar panels can lead to environmental hazards

Many business organisations are aware of the environmental hazards which solar panels can lead to. As these panels turn to electronic wastes once discarded, they lead top landfill. Moreover, you can face many problems recycling any part of the solar panel once it is uninstalled. The only way business organisations can get rid of the e-wastes is to dispose of it properly.

So, as a business owner, you can get no recycling value. The Solstice data shows that nearly 90 to 97% of the solar panels can be recycled but it might be easier for residents and not businesses. The only good thing related to the proper disposal of solar panels is that it restricts CFC emission.

Scarcity of reliable solar power suppliers

Many businesses look down on purchasing solar panels due to the unavailability of reliable solar power dealers. A business person might experience a huge loss while purchasing the panel as there is hardly any chance to go through the offers and quotes.

Moreover, you cannot check if there are any cheaper rated packages as only one or two dealers cover a specific locality when it comes to solar energy service.

Final Words

Corporate entities are a part of a competitive market where they cannot compromise with the profit and some primary investments. The facts mentioned here show some crucial concerns why many organisations prefer a normal power supply rather than solar panels. However, the recent data shows that most oil companies have already signed 109 with solar companies from 2002 to 2017. The number has increased a lot by now.

However, the future can come up with a different picture where solar panels might become a common thing in every company building; a rooftop. Apart from awareness, the solar power markets in many leading countries need to thrive more and gain transparency.

Any organisation can decide to use solar panels for power generation if it gets a competitive quote and can choose the right solar power supplier in the locality.

Also read:

1) How to Start a Solar Energy Retail Business? All about solar energy retailership
2) Windmill Or Solar- Which Is The Best For Business In India?
3) Solar Energy Startups in India: Looking at a Shining Future!
4) Eco-Friendly Business Ideas for Small Business Owners