Solar is a technology, not a fuel.
Distributive Solar Arranges Construction of 182 kW Rooftop Solar System in Downtown, Winston-Salem, NC
Our global economy is changing at an ever accelerating pace. Technology is growing and broadening exponentially and we are living in a very dynamic age, the "Third Industrial Revolution" some would say. We can't take things for granted anymore and we have to be flexible and prepared. This is certainly true when it comes to how and why we invest in infrastructure and how we protect our assets/margins and more importantly, how we secure a better future for our families, our businesses and communities.
It has been very difficult to predict and measure the pace, direction and impact of "change" in our societies and over the last decade. From the proliferation of Social Media and Amazon to the impacts of Globalism, Climate and IoT, our sense of security is being threatened.
Fortunately, a few things are a constant or a known. I will discuss just one, the sun, The Ultimate Hedge. The sun is a sustainable, renewable free source of energy that is totally inexhaustible. Sunlight striking the earth’s surface in just one hour delivers enough energy to power the World Economy for an Entire Year.
“I’d put my money on the sun and solar energy. What a source of power! I hope we don’t have to wait until oil and coal run out before we tackle that.” –Thomas Edison What does this mean to my business you say? A commercial enterprise does not have complete control over revenues, tax rates, regulation, cost of capital, cost of labor, electricity cost or a host of other things. A lot of these expenses vary and continue to rise year after year after year, eating into your margins with little vision into what might change next.
You can control and manage one of these expenses or greatly reduce the inflationary impact on your bottom line . That is your electricity cost. Depending on your business profile, size, usage and load characteristics this can be a manageable or extraordinary impactful line item. Based on the series of knowns highlighted above you can control, manage and reduce your electricity expenditures and exposure to future rate hikes by leveraging the power of the sun. Here is why you should consider installing solar now.
Own Your Energy!Commercial rooftops are typically flat, unobstructed and exposed to solar energy. You can utilize this free resource and turn your rooftop into a known, predictable revenue stream/savings with relatively little ongoing operational cost. You can determine the cost to install the energy production and therefore you can know with confidence, your reduction in energy expenses, Return On Investment and Changes to Cash Flow. Simply put, solar will reduce risk and cut cost and that means more money to your bottomline.
Do you know what solar means to your business financially? Solar is a Smart Business Decision and we would love to show you how. Put your money on the sun and solar energy!
by Erik Melang; Co-Founder at Distributive Solar
Why Now is the Time to Go Solar
Wow, time flies! It seems like yesterday when the Federal Solar Investment Tax Credit, #ITC was first implemented. Here we are, a decade later and what do we have to show for it? One thing for sure is that short term incentive programs are a double edged sword, as many developers chase expiring incentives (federal, state & local) and pull projects forward. This policy induced, industry volatility makes it difficult to successfully operate a solar enterprise through economic cycles and over a long period of time. We have seen manufacturers, financiers, developers and installers alike fall victim to this practice. We have seen the Titans of the industry go bankrupt in a sector that is doubling every 2 years. It seems as though the industry has been commoditized at its very infancy. Technology advancement has shortened the #Technology S-Curve and competition is driving down margins.
So then, who is the biggest beneficiary of Solar? The #environment is certainly a beneficiary, but the Biggest Beneficiaries are the Users of the Technology. Especially when we look at commercial enterprises with non-revenue producing rooftops. How are they benefiting? In two words, Cash Flow! Solar Technology increases the cash flow to a business enterprise, by lowering current electricity cost and more importantly mitigating future energy rate hikes.
On June 8, 2014, Warren Buffett revealed that Berkshire Hathaway Inc (NYSE:BRK-B)subsidiary MidAmerican Energy (now renamed Berkshire Hathaway Energy) had invested $15 billion into solar and wind projects. Buffett added, "there's another $15 billion ready to go, as far as I'm concerned." One could argue that today may be the best time for a business or building owner to invest in a solar technology system for their facilities. Commercial system installation cost have fallen some 60% since 2011 to under $2.00 per watt.
What are the Returns?
The US 30 year treasury is yielding under 3%. The Dow is at all-time highs. Corporate revenue growth is sluggish. The annual 30 year returns on commercial solar systems are well in excess of 10%, often 15% or more when you consider the 3% #electricity inflation. Better yet, a solar technology system has known returns year after year after year. Solar panel production is warrantied for 25 years and the average sunlight is known.
Now, as we once again approach expiring incentives and fierce competition, capturing the power of the sun has become a buyers market. Now is the time to begin the process of understanding how solar can work for your business. Now is the time to engage with your Distributive Solar independent solar consultant. Your commercial or industrial property might benefit from installing solar, and we would love to show you how.
by Erik Melang; Co-Founder at Distributive Solar