Small Businesses Go Solar Mari Kong 11/20/14 1
Summary When I talk to local businesses about going solar, the first questions people usually ask are, Why me? Why does it matter if I go solar? This paper s intent is to highlight the main external and internal benefits for going solar and encourage small business owners to look further in to solar energy as a potential energy provider. There are three main categories of benefits that small businesses can access by considering solar energy: financial, environmental, and social. There are solar financing programs falling costs of going solar, and government incentives making solar energy more affordable than ever before. This is beneficial for society as a whole, since solar technology was developed as a clean energy alternative to burning fossil fuels and other natural gases. Switching to solar power is an opportunity worth considering due to the minimal negative impact on the planet and the large positive impact it can have on your business. Table of Contents Summary...2 Why Solar Starts With You...3 Background...3 Financial Benefits...3 Environmental and Social Benefits...3 Conclusion...4 All the Facts...5 Moving Forward...5 The Solar Steps...6 What Solar Companies Have to Say...6 References...7 Critical Information Sheet...7 Disclaimer: This report does not endorse any specific solar company and encourages readers to explore their options when picking a company to go solar with. This report has the intent of purely demonstrating the benefits for small businesses to choose solar energy. 2
Why Solar Starts With You When I talk to local businesses about going solar, the first questions people usually ask are, Why me? Why does it matter if I go solar? Which is a valid concern because big retail companies like Wal-Mart, Ikea, and Apple are very publicly switching to green power. But I m talking to you, a small business owner, because I know that your company has the potential to make a serious difference. And I also know that your business can seriously benefit from the opportunities that solar energy has to offer. In many ways, there are just as many, if not more, incentives for smaller businesses to go solar than larger businesses. According to Solar Energy Industries Association (SEIA), in total, 129 million Americans live within 20 miles of a solar-powered business.i Due to a lowering of hard costs, solar energy has become more accessible to everyone and the number of businesses powering their lives with sunshine increases each year. This is due to people within the non-residential space seeing the financial, environmental, and social benefits that solar energy can provide. Switching to solar power is an opportunity worth considering due to the minimal negative impact on the planet and the large positive impact it can have on your business. So what s stopping you from being a part of the rooftop revolution? Background Solar technology is not a budding, risky innovation. It has been used in some capacity for more than forty years, only hindered by the high production costs, making it a safe and stable energy alternative.ii On April 26, 1954, The New York Times stated that the creation of solar cells is the beginning of a new era, leading eventually to the realization of one of mankind s most cherished dreams -- the harnessing of almost limitless energy of the sun for the uses of civilization. Now, 50 years later, commercial solar photovoltaics (PV) have been installed on 41,803 business, non-profit and government locations throughout the United States. Financial Benefits The high costs of panels, installation, and maintenance for solar used to be a major dissuader for homeowners and businesses. Recently those costs are falling dramatically because of the mass production of solar cells, the improvements from advancing technology, and the vast number of solar providers. Additionally, solar providers are offering Power Purchase Agreements (PPAs) as a helpful way to finance your solar panels. PPAs are financial agreements where a developer arranges for the design, permitting, financing and installation of a solar energy system on a customer s property at little to no cost. The developer sells the power generated to the host customer at a fixed rate that is typically lower than the local utility s retail rate. iii In other words, if you decide to go solar under a PPA, you can make the change with no upfront capital costs and start saving money as soon as you turn on the power. In fact, many companies promise to only install on your roof or land if, in the long term, costs are going to be lower than what your current utility provides. Another financial benefit of going solar is solar energy s low and fixed rate especially in comparison to the rising energy costs of utilities. Additionally, there are currently great federal and state incentives for businesses to go solar. These incentives are diminishing as the solar industry grows, therefore now is the time to go solar. Environmental and Social Benefits Though the financial gains are great, many companies choose renewable energy for the environmental and social aspects. The future of energy is in clean and renewable 3
energy sources, so by going solar now you have the opportunity to be ahead of the curve. Solar technology was developed as a clean energy alternative to burning fossil fuels and other natural gases. Therefore by going solar, you are helping society as a whole. If we all start making clean energy choices we can prevent air pollution and make use of the sun s infinite source of energy. What I found interesting was that each solar kilowatt-hour (kwh) offsets more than a pound of carbon dioxide. Which means that with a 4kw PV system, a company can reduce the carbon emissions equal to driving more than 12,000 miles in the average passenger car.iv This impressive step in reducing your company s carbon footprint, can lead to inspiring others in your community to consider going solar as well. From a business perspective, making socially responsible decisions is a powerful tool. Many consumers care about the impact companies have on the world and installing solar panels have been proven to renew a company s social brand. If your company is a "green energy" business, signifies that you are proactively working to reduce America's dependency on foreign energy. By committing to environmental stewardship, your company will receive more support from customers because your concern about the earth s problems ensures them that your company cares about their needs as well. Conclusion Overall, real environmental and societal change will not occur until small business owners, like you, consider renewable energy as a viable energy provider. SolarCity emphasizes this by recently releasing a campaign around the message The power is yours.v This statement illustrates the control and influence you have over your energy. It is important to note that the solar industry is not trying to change the traditions you have built your company on, but instead enforce them with the building blocks of new opportunity. The most important element then that I can stress is to be informed. Reading this report was the first step and I encourage you to keep looking and finding the best energy solution for your company. After all, going solar is about knowing your options and opportunities within the energy space. Going solar is about being able to take full responsibility over your energy costs. Going solar is about assessing what is best for your company in the long term. Going solar is your choice. Make it count. 4
All The Facts vi Want to know some quick and clean benefits behind going solar? Here they are below: Financial Benefits: - Produces the most energy when demand is highest - Predictable pricing that is equal to or below retail energy rates - Great federal, state, and local government financial incentives to go solar - PPA Benefits vii o No or low upfront capital costs o Reduced energy costs o Limited risk o Better leverage of available tax credits o Potential increase in property value Environmental Benefits - Deliver energy with zero emissions - Can be installed anywhere there is sunlight - When located on roofs there s minimal construction impact - Lessens carbon footprint of business - May lead to different green business certifications and awards Social Benefits - Supports national energy independence by reducing the need for fossil fuels viii - Provides power locally, reducing the need for extensive "grid" infrastructure - Renew your brand with renewable energy - Join the Rooftop Revolution - Creates jobs for the local economy Moving Forward Interested in looking further in to solar? Here are some next steps you can take: 1. Look at SEIA s Solar Means Business Report ix for a deeper perspective of the solar industry 2. Research solar companies in your area and the companies that your competitors have gone solar with 3. Set up consultations companies that would seem to fit your business best and can satisfy your needs. From there, the company should be able to assess whether or not your business can go solar. 4. There s the Solar Steps section below that can go in to further detail about the solar process 5
The Solar Steps by Borrego Solar x 1. Site evaluation and sourcing We gather requirements, conduct a site analysis, determine which technologies are best for your situation, and negotiate prices and contracts on your behalf. 2. Engineering/design We design your system to minimize solar energy costs and maximize system lifetime. 3. Installation/construction Our solar energy installers provide onsite management, address any construction challenges, mitigate risk and ensure quality results. 4. System maintenance and monitoring We offer custom maintenance and monitoring packages to ensure your system always performs at peak efficiency. What Solar Companies Have To Say Here are a few examples of what solar companies are promoting to small businesses on their websites. We help small and medium business owners lower operating costs, increase control over rising electricity rates, and improve their public and community relations. - REC Solar We help our small business clients navigate the technology and incentive landscape. We can help you understand how the rebates and tax credits work and what technical issues we will face when installing a system on your roof or land. In many cases we are able to provide rebate and tax credit financing in order to reduce up front capital cost. Borrego Solar We currently install 1 in every 3 residential solar power systems in the U.S., but we also think big. We ve helped businesses, governments, schools and other agencies install large scale commercial solar power systems to help them meet their sustainability and financial goals. SolarCity Solar energy is often an ideal improvement for retail properties with significant CAM loads and/or large anchor tenants. Tecta can deliver discounted clean electricity to offset heating, cooling, and lighting needs. Owners realize increased asset value since the property is now "green," which often dovetails with tenant marketing and consumer values. Tecta Solar 6
References - i "Solar Means Business 2014: Top U.S. Commercial Solar Users." SEIA. Solar Energy Industries Association, 2014. Web. 20 Nov. 2014. ii Guest Contributer. "Why Your Business Should Consider Solar Power." CleanTechnica. Sustainable Enterprises Media, Inc., 23 Mar. 2013. Web. 20 Nov. 2014. iii "Solar Power Purchase Agreements." SEIA. Solar Energy Industries Association, n.d. Web. 20 Nov. 2014. iv "Why Go Renewable." Pacific Gas & Electric - PG&E. Pacific Gas & Electric - PG&E, n.d. Web. 20 Nov. 2014. v http://www.solarcity.com/ vi "Commercial Solar Benefits: Why Businesses Go Solar." Commercial Solar Systems. Entersolar, n.d. Web. 20 Nov. 2014. vii "Solar Power Purchase Agreements." SEIA. Solar Energy Industries Association, n.d. Web. 20 Nov. 2014. viii "Commercial Retail Solar Information." SunEdison. SunEdison, n.d. Web. 20 Nov. 2014. ix "Solar Means Business 2014: Top U.S. Commercial Solar Users." SEIA. Solar Energy Industries Association, 2014. Web. 20 Nov. 2014. x "Turnkey Solar Installations." Solar Energy Solutions. Borrego Solar, n.d. Web. 20 Nov. 2014. Critical Information Sheet Intent Statement Small businesses should consider implementing solar technology because small businesses can make an impact on society as a whole, while receiving great financial, environmental, and social benefits from the clean energy technology. Audience Description - My intended audiences are small business owners who have not considered going solar before. This paper serves as an introduction to why they should go solar and what options they have. They are somewhat threatened by new technology and renewable energy because in the past those have lead people away from their stores and to the arms of big businesses. However, since they are local business owners they can be seen as individuals still affected by the issues today. They follow the news and generally believe in climate change and understand that there are environmental threats to our current way of life. My audience is business-oriented and detail-minded, so they want to know all the facts before making any change regarding their business. Also, my audience is very personally invested in their businesses. For some, their business might be their life s work and they don t want to see it go to waste. Strategy Explanation - I went with a formal business report formatting for my argument because that was what was advised by my interview report. The defining characteristics of a business report are that the argument is short and concise and has clear and obvious intentions. There are headings above every argument and helpful tips at the end of the report to encourage taking the next steps beyond reading this paper. My tone was clear and concise, but I tried to give it a hint of personality because I am directing the article at individuals. I found 7
that the structure was easy because I just hit on the most important benefits and sorted the rest of the paper behind those three arguments. Writer s Reflection The Power is Yours. I read that on SolarCity s website and I think that really demonstrated my thoughts on my course project paper. Unlike my option paper, I knew what I was talking about and was very passionate from the beginning of the semester. The next steps then became about what am I going to do get my point across? How can I best structure my argument to prove my point and show that I m not only knowledgeable about the subject, but I m a big believer in it, as well. Next steps are to further the paper in information and scope. I d love to have a hearty appendix that shows the data behind a lot of the claims I am making. I also want to have some case studies of small businesses that have gone solar that highlight their motivations behind going solar and what they found the greatest benefits are. 8