Here, at the Green Solar Technologies blog, we often concentrate on the great many advantages of going solar for homeowners. These advantages range far and wide—from increasing your property value to saving loads of money on your electricity bill, from achieving energy independence to supporting the American economy—even reducing pollution levels in your city. Of the approximate 76 million homeowners in the U.S., more than 13 million have already gone solar in the past decade and reaped enormous benefits. The average residential solar panel installation will save homeowners $18,000 over the span a typical financing period (13 years), and that is just while paying off the system. After that, the savings skyrocket making the cost for electricity production nearly free.
As amazing as all of this sounds, commercial property owners have even more to look forward to in terms of these outstanding rewards when they go solar.
Businesses in the United States face monthly power bills six times greater than that of average homes. And likewise, will reap six times the savings by going solar. That amounts to more than $100,000 over the equivalent amount of time for a residential solar finance term, and immeasurably more after the system is completely paid off.
So why aren’t more business owners going solar? Well, it isn’t quite as simple.
Loan Approval Challenges
Like most homeowners going solar in search of a frugal finance term, owners of commercial property who want to make the switch often face loans terms with a more difficult screening process. Because the commercial solar loan will be larger than a typical residential solar loan, it is not uncommon for business owners to be partially-approved or not at all. This shouldn’t be too surprising, however. The finance company would be taking a much bigger risk since they are putting down more money, so good credit is even more important.
Higher Interest Rates
This one makes sense also. The finance company is risking more on greater purchases, so that will be reflected in higher interest rates. This is standard for most credit situations, regardless of the items purchased. But not to worry. These rates still are not too high. In fact, they are usually in the 6–7.5% range. Still a very good deal and it will be offset by your enormous savings from producing solar energy.
Shorter Finance Terms
Although 10 to 15 year finance terms exist for qualified buyers, many terms end up in the 5–7 year range. This can make it a little more difficult if your company lacks the funds to pay off the system that quickly. Still many do and in fact, some pay in cash! For those with a deep pocket and cash on hand, loan terms, interest rates, and even credit score requirements do not apply to you. You simply pay off your solar power system fees, and the monstrous saving begins immediately.
Business owners also may qualify for the Federal Tax Credit which can become a huge money saver on your commericial solar project. To learn more about how your commercial property can win big by going solar, apply for a free solar consultation!
by Ged Friedman