Recent global events have brought to light just how volatile and expensive even a slight shift in the market can be when it comes to the price for a barrel of oil. Between the pandemic and now the conflict in Ukraine, oil has gone from $45/barrel in December of 2018 to $65/barrel 4 months later. Thirteen months later, oil dropped to $13 per barrel and then rose to $43 by the end of the summer. As if that weren’t enough, inflation and the Ukraine are projected to drive the cost of a barrel over $100.
For businesses, this translates to a very unpredictable cost of production and virtually impossible to forecast. In order to maintain any guaranteed profitability, the companies have to err on the high side. Unfortunately, this passes the higher costs unto their customers.
One solution that would help companies to be less affected by the ever changing costs of oil would be to invest in a solar array to bring balance to their electricity usage.
A properly-sized solar array will not only pay for itself but also help to forecast the expenses for a much lower electricity bill. It is not unheard of for a small manufacturing facility or a large linen company to spend ten thousand dollars per month on electricity. Long gone are the days when a solar investment took 15 years to pay for itself. Today, it is quite common to see a project complete its financing in under 5 years. Furthermore, during the payment period, when coupled with the state and federal incentives, projects cost less from day one than the business was paying for electricity before the array was turned on.
What does this mean for the business owner? It means a better bottom line because the cost of electricity is less than it was before the solar solution. It means a better ability to forecast because, for the first time, there is more control over electricity expenses. It means being able to upgrade the facility or buy new equipment or hire a new employee or simply have a better line at the end of the year.
What does it take to determine your savings and if this is the right course for your business? A simple phone call to your local solar provider would be enough. Initial assessments are not difficult to analyze and it’s good information to have, regardless of whether or not you move forward with the project.