The world has already made a move towards more sustainable energy solutions. Small businesses are no different, and they are increasingly searching for ways to lower their environmental footprint while reducing operational costs.
One such emerging option is community solar, a model wherein businesses can benefit from solar power without installing their own solar panels.
How Does Community Solar Work?
Community solar operates by allowing multiple enterprises, residents or other organisations to become a part of a single community solar project, which is usually an offsite solar farm.
Participants are then able to lease a portion of the energy production of the solar farm, rather than installing solar panels on their own property which can be a costly activity especially for small businesses with limited budgets.
The electricity that the solar farm generates goes into the local power grid. The participants then receive credits on their utility bills based on their share of energy created. This model gives businesses access to clean, renewable solar power without upfront costs, installation or maintenance.
Is Community Solar Beneficial To Small Businesses?
Community solar offers a host of advantages for small businesses. These range from cost savings, sustainability, greater energy independence and reduced participation barriers.
Let’s take a look at these benefits available to small businesses from community solar.
On-Site Panels Are Not Needed
One of the major challenges for adopting solar energy for small businesses has been the high upfront cost and logistical challenges in on-site installation of solar panels.
For most small businesses, they have sufficient financial resources to invest in solar infrastructure. Additionally, there may be a shortage of physical space or unsuitable roof conditions to accommodate solar panels. With community solar, businesses can participate in solar energy without having to install any equipment on their property.
This means that businesses with older buildings, leased-space businesses or businesses in an area where sunlight comes at a premium may also access solar energy. In community solar, the solar infrastructure is all off-site at a solar farm, it accessible to businesses of all types and sizes, regardless of location or property limitations.
Energy Costs Are Stabilised
Energy costs can be very unpredictable, particularly for small businesses, which are highly vulnerable to changes in utility rates and market conditions.
Community solar helps to stabilise these costs through a more predictable pricing structure. Since solar energy does not experience the same volatility as other sources of power from fossil fuels, businesses can enjoy more stable electricity prices over time.
Moreover, most solar community programs offer fixed contracts or rates with predictable price structures. This reduces the impact of price volatility and can provide businesses with the ability to budget accurately and avoid surprise spikes in energy costs.
It Is Environmentally-Friendly
More than ever, consumers and clients are looking for companies that take sustainability and environmental responsibility seriously. Community solar allows small businesses to reduce their carbon footprint significantly while showing their commitment to renewable energy.
Solar is a clean, renewable source of power, and that helps decrease the reliance on fossil fuels and lowers greenhouse gas emissions.
Additionally, community solar provides an easy and impactful way for businesses to improve their corporate social responsibility (CSR) or sustainability goals by transitioning to green energy.
Contracts Are Flexible
Traditional solar installation requires significant upfront investment and a long-term commitment to maintaining solar panels. Quite the opposite, community solar programs are far more flexible.
Most offer short-term contracts, so businesses can opt in or out and are not locked into any of long contracts.
This is highly beneficial to the small businesses that may not know exactly where they will be in the future or what their energy demands will be. If a business grows and requires more energy, or relocates to a new space, community solar participation can easily adjust or transfer with the least disruption possible.
Energy Bills Are Reduced
Perhaps the biggest advantage of community solar for small businesses is the potential cost savings. Many small businesses are on razor-thin margins, meaning any opportunity to reduce overhead expenses can make a world of difference.
By participating in a portion of a solar farm’s energy production, businesses can receive credits on their electricity bills. This is based on their percentage share of power generated. That can provide instant savings and not require on-site installation and maintenance costs of solar panels.
The Smart Energy Choice For Small Businesses
Community solar is an incredibly strategic move for small businesses. Not only can they reduce their energy bills but enhance their sustainability efforts too.
It has become a flexible and cost-effective way to access solar power for small businesses to benefit from renewable energy. For this reason, it is likely that community solar programs will become an important part in shaping a cleaner future.
