The Economic Benefits of Solar Energy for Chicago Businesses
For businesses in Chicago, implementing solar energy is not only an important environmental initiative, it’s a strategic step to reduce costs. But that’s not all. Solar panel for businesses gain a competitive advantage by improving their environmental image and attracting customers focused on sustainable development.
The United States is among the top five in the world in the number of installed solar panels for business, and the total production of solar energy is expected to increase by 24% by 2025.
In Chicago, Illinois, the government actively encourages the transition to renewable energy through various grant programs and tax incentives. For example, the Illinois Renewable Portfolio Standard law stipulates that at least 25% of all electricity in the state must be produced from renewable sources by 2030.
However, despite benefits, businesses often face various obstacles: the cost of initial installations or a lack of information about financing programs and multiple permits. However, those companies that have decided to overcome this barrier show that the effort is worth the economic benefits.
Cost Savings for Business
Solar panels for businesses make it possible to produce their electricity, making you less dependent on market electricity costs. According to the U.S. Environmental Protection Agency (EPA), businesses can reduce their energy bills by 20-40%, depending on the scale and efficiency of the systems installed.
Installing batteries also allows businesses to store excess Chicago renewable energy and use it at night when solar panels are not generating electricity. Not only does this provide additional savings by minimizing energy purchases from the supplier, but it also increases power independence and the resilience of the business to fluctuations in electricity prices.
Another way to save big is the “net metering” system, which allows you to sell excess energy produced back to the grid without the need for a battery.
Tax Incentives and Rebates
The most common problem with installing solar panels is the cost of installation. It all pays off but still requires a large investment. The cost of installing solar panels for a company can range from $50,000 to $200,000, depending on the size of the system and its capacity. You can find the approximate cost by filling out our quote form.
The good news is that it is possible to get some of the money back with some solar panel grants for business:
At the federal level, one of the most significant incentives is the Renewable Tax Credit, which provides businesses with the opportunity to receive a credit equal to 30% of the cost of installing solar panels. The business solar panel tax credit runs until 2032, after which the rate will begin to decline.
Illinois Shines offers financial incentives for solar panel installation for businesses through the sale of Solar Renewable Energy Credits. Companies install solar panels and receive SRECs for every megawatt-hour of energy they produce. These credits can then be sold, generating additional revenue and reducing installation costs.
That’s not all! Chicago has other solar panel business grants. The Chicago Solar Express program offers local businesses discounts on solar installations and assistance in obtaining financial subsidies.
Increased Property Value
One of the less obvious but significant financial benefits of solar energy for businesses is the potential increase in property values. Investing in Chicago renewable energy not only lowers your bills but also increases the market value of the building. According to a report by the National Association of Realtors, solar panels boost home value by 56%.
Besides, PV units are special for businesses that prefer to rent out their properties. Properties with solar panels are much more attractive because those solar benefits are undeniable.
Job Creation and Local Economic Growth
Decisions like installing panels on your home or business may seem small, but they have a big impact on how other people see you. But, surprisingly, you will soon notice that solar panels are “contagious”. Seeing your neighbors may prompt you to take the plunge to reap the benefits. More and more buildings are being installed with solar panels, and this demand will create a boom in jobs.
The solar power sector is growing rapidly, offering multiple employment opportunities, from research and development to solar panels installation and maintenance. According to the Solar Energy Industry Association Report, more than 250,000 solar jobs were created in the United States in 2022, up 5% from the previous year.
Job growth makes your local community much more developed. It may significantly improve the local economy, which may result in your success too.
Energy Independence and Stability
Using solar power allows a business to reduce its dependence on energy sources such as oil, gas, and coal. It is essential because of price volatility in global energy markets.
In 2022, the average price of electricity in Illinois was about 11.94 cents per kilowatt-hour. However, oil and gas prices are often subject to sharp fluctuations, which creates uncertainty for businesses.
By investing in solar panels, a brand can provide stability and less dependence on electricity prices. Your local Chicago renewable energy source may allow you to plan for the future without worrying about the cost of production.
The stability of your business will allow you to focus money on improving the business itself rather than on paying existing bills.
Your energy source also becomes a kind of bankruptcy protection: many businesses cannot withstand the high cost of electricity or break even.
Positive Environmental Impact
Reducing the human impact on nature is quite a difficult goal, but small steps towards achieving it are deeply appreciated. Here is how installing solar panel for business in Chicago will allow you to have a small impact on the environment:
- Generating electricity, especially from natural coal or gas, leads to CO2 emissions. Solar panels for business allow you to create electricity without significant emissions.
- To avoid overheating, power plants use a huge amount of water. Thanks to solar installations, you can reduce the amount of water because solar panels do not require it.
- Traditional power plants emit harmful substances such as sulfur dioxide and nitrogen oxides, which worsen air quality and cause respiratory diseases. Switching to solar energy helps reduce these emissions.
Improved Corporate Image and Marketing Benefits
Investing in Chicago renewable energy helps brands improve their image and attract the attention of customers and partners. If you are a business that cares about the environment and purchases solar panels, it does not go unnoticed either. You can gain:
- Better reputation: Companies that use solar power are perceived as environmentally responsible.
- Advantage over competitors: Rooftop solar panels differentiate a company from its competitors and attract conscious consumers who value sustainability and environmental responsibility.
- More talents: Young professionals prefer to work for companies that share their values. According to IBM, 71% of employees consider environmental sustainability an important factor when choosing a job.
- Positive media coverage: Companies that go solar receive positive media attention, which strengthens their marketing position without incurring additional costs.
Improving people’s perception of yourself makes you more attractive as a business. Using clean energy can serve you as an advantage in the long run that you could not even imagine.
Chicago Renewable Energy Is A Win
Solar panels are certainly a rather expensive investment in your business. Still, it is an investment that will quickly pay for itself. Besides, Chicago renewable energy may make your business more attractive to customers, and you will be protected from fluctuations in electricity prices.
Solar panels provide you with much more than just economic benefits. They improve your reputation, reduce the human impact on nature, and can greatly influence and improve your community, making your neighborhood a good place to do business.
FAQ
What are the primary financial incentives available for businesses investing in solar energy in Chicago?
In Chicago, businesses can benefit from several financial incentives to invest in solar power. The Federal Investment Tax Credit (ITC) allows you to recoup up to 30% of the installation costs. In addition, the Illinois Shines program offers additional financial incentives, making solar panels more affordable and profitable.
How does installing solar panels impact the property value of commercial buildings in Chicago?
Installing solar panels has a positive impact on the value of commercial buildings in Chicago. Chicago renewable energy reduces operating costs, making the building more attractive to tenants and buyers. Environmental responsibility increases the prestige and attractiveness of the property, increasing its market value.
What are the long-term cost savings associated with solar energy for businesses in Chicago?
Long-term savings from solar power for businesses in Chicago include significant reductions in energy costs and protection from fluctuations in traditional electricity prices. Companies can also earn additional revenue by selling excess energy to the grid, which accelerates return on investment and reduces overall operating costs.
