How does the cost of solar power compare to traditional electricity?
- A lasting investment
- No ongoing fuel costs
- Electricity price stability
- Incentives and subsidies
- Energy independence
overview
- Solar energy offers lasting financial benefits, potentially saving businesses millions over 25 years by eliminating utility bills, making it a valuable investment.
- Unlike traditional electricity, which relies on fluctuating fossil fuel prices, solar energy is powered by the sun, reducing long-term costs and ensuring price stability.
- The Philippine government is offering incentives to make solar energy more affordable and generate potential revenue from excess energy production.
Solar energy is becoming increasingly popular as an alternative to traditional electricity, particularly for businesses looking to reduce costs and promote sustainability. If you’ve been thinking about switching to solar power, you may be wondering what the cost difference is between solar power and traditional electricity.
In this article, we will break down the various factors that make solar energy a cost-effective solution compared to traditional electricity. From the lasting value of your investment to eliminating ongoing fuel costs, we’ll show you how switching to solar energy can lead to better financial results.
A lasting investment
While the initial cost of installing solar panels can be quite high, the long-term benefits often outweigh the upfront costs. This is because solar systems typically have a lifespan of at least 25 to 30 years, meaning your business can benefit from reduced or even zero utility bills for decades after the system is fully paid off.
For example, a business in the Philippines with a monthly electricity bill of PHP 50,000 can expect to save up to PHP 600,000 per year once the solar system is installed. Over 25 years, this represents a total savings of around PHP 15 million. These long-term savings can significantly improve a company’s overall budget and enable reinvestment in other areas of the business.
In addition, the value of your property can be increased by installing a solar system. Many commercial properties with solar systems have a higher resale value due to the long-term energy savings associated with them. This added value makes solar energy not just an expense, but an asset that provides ongoing financial benefits.
No ongoing fuel costs
Traditional electricity generation is largely based on burning fossil fuels such as coal, natural gas and oil. These power plants continually consume fuel to generate electricity, which not only increases energy costs but also contributes to environmental degradation through carbon emissions and pollution.
The cost of these fuels can fluctuate depending on market conditions, geopolitical events or supply chain disruptions, resulting in unpredictable and often rising electricity prices. For businesses, this unpredictability can mean higher costs and reduced financial stability.
Solar energy, on the other hand, solves this problem by relying on the sun – a free, renewable resource that requires no fuel. Once installed, your solar panels generate electricity with no ongoing fuel costs, significantly reducing your long-term energy costs.
Electricity price stability
As oil and natural gas prices fluctuate, electricity prices also fluctuate, often leading to significant cost increases for companies. This uncertainty makes it difficult for companies to accurately predict and budget their energy costs, potentially leading to financial strain.
Unlike fossil fuels, solar energy is a free and renewable resource that is independent of market fluctuations. This means that companies can mitigate the impact of rising electricity prices and benefit from consistently lower energy costs in the long term.
Solaric – the country’s leading solar provider – offers reliable solar systems and expert advice to help your business achieve energy stability and control its budgets. By investing in solar energy with us, you can future-proof your business’s energy needs.
Incentives and subsidies
The Philippine government offers a number of subsidies and incentives to encourage businesses to adopt solar energy. These financial benefits aim to reduce the initial costs of installing solar systems and promote the use of renewable energy.
For example, under the Renewable Energy Act of 2008, companies can enjoy income tax exemptions and exemptions from certain local and national taxes for up to seven years, making solar energy investments more affordable.
In addition, the government is offering companies the opportunity to take advantage of the feed-in tariff (FIT) system, where they can sell excess energy generated by their solar panels to the grid at a fixed price. Not only does this help offset installation costs, but it also creates a potential new revenue stream for businesses.
Energy independence
Power outages and blackouts are common in the Philippines, especially during the dry season when electricity demand is at its highest. For example, the recent yellow alert in Luzon highlighted the risk of power disruptions due to insufficient power supply.
With solar panels and battery storage, your business can generate its own electricity, store excess energy and use it during power outages or peak periods, avoiding the unpredictability of grid supply.
At Solaric, we offer customized solar solutions that can help your business maintain continuous operations even during grid outages while significantly reducing energy costs in the long term.
Key to take away
When comparing solar power and conventional electricity, the advantages of solar energy become clear. Solar energy not only offers significant long-term savings and energy independence, but also provides stability and environmental benefits.
If you are ready to make the change and reap the benefits of solar power compared to traditional electricity, Solaric is here to help you. Contact us today for a free consultation and start maximizing your savings with the best solar technology available.
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