Key Points of the Article:
- The photovoltaics for businesses not only relate to the large industries.
- The photovoltaics for businesses reduce the operating costs of the business.
- Businesses can achieve increased profitability with a solar panel.
- The investment achieves payback in 3 years.
- There are often grants with great rates.
If we could describe with a few words the main responsibility of an entrepreneur, regardless of industry, we would say that this is to find solutions to everyday problems.
The issues that has to deal with a businessman on a daily basis is a lot. Customer issues, questions of officials and issues of the daily running of the business.
The main concern of an entrepreneur is the reduction in operational costs of the business-and that will increase the profitability.
Did you know that a photovoltaic system it may give this kind of solutions in a business?
Electricity has always been the driving force of the business and one of the biggest monthly expenses. Net-metering with the production of energy through photovoltaic systems is the solution to the problem of energy.
Following are eight reasons why every professional should be directed to the solar panels for businesses.
1) The cost of electricity is constantly increasing
The constant increases in the price of emissions (CO2) are leading the energy market in an era of constant markups. It is characteristic that a ton of pollutants, ranging in prices over 50 euro. Six months ago the price was 25 euro. This duplication has resulted in the wholesale electricity price to skyrocket from 45 euro, always speaking of cost per megawatt-hour, in 99,8 euro while the dam of eur 150 is expected soon be overcome. The conditions that shaped require energy suppliers to pass on the costs to accounts, as well as, in the framework of the competition, their profit margin was already quite reduced. This is the reason that the industries of the country have come already faced with increases in the order of 30%. In fact, can't be answered with certainty what price and when will they stop the constant increases.
It is easy to understand that the electric current is becoming an unbearable cost for any professional who monitor their monthly bills to show a constantly increasing while big winners from the situation that is shaped emerging entrepreneurs had a chance to be converted to autoproducers of the energy required by the business. Now, any price increase implies a reduction of the depreciation time of their investment. In this way maximize the benefit from the shift towards green energy.
2) Photovoltaics for businesses reduce production costs
Every business in order to produce products or services using factors of production, the cost of which is included in the final price of the product. The electric current, the raw materials and the cost of personnel are the main expenses of a business. The specific costs play an important role in the formation of price in order to have a sustainable profit for the professional. Therefore, any increase in any of the above leads to the entrepreneur in the dilemma of whether there will be passing on the increase to the consumer or if it will absorb the increase, reducing the profit in order to remain competitive.
When, however, the increases are on the order of 30%, as it happens, the last time the accounts of the power supply, then the rise in the price of the product produced is a one-way street. Any differentiation in the price is the equivalent of differentiation, either positive or negative, of the position of the company compared to the competition. Therefore, a business that remains unaffected by the increase in the supply can keep you and fixed the prices at the same time that competitors are forced to change the pricing policy in order to remain profitable. Automatically, the investment in photovoltaic systems leads to an improvement in the position of the company and in ensuring the economic growth and prosperity.
3) There are often grants that cover large percentages
The shift towards renewable energy sources is an immediate priority for the European Union, resulting in continuous incentives through grants for new investments in the photovoltaic sector. Additionally, by tightening the regulatory framework governing emissions and increasing fines for member states that continue to generate electricity through lignite plants, governments are compelled to seek solutions. The above reasons translate into financial resources, either from state funds or through the National Strategic Reference Framework (NSRF)... These can be utilized by professionals to significantly reduce the cost of installing a photovoltaic system.
In more detail, NSRF completed at the end of 2020 included a special grant for professionals who wanted to become autoproducers energy through a photovoltaic system, covering the 50% of the investment. That is, the installation of a photovoltaic system 20kW, which is enough to fully cover the needs of a company charged the owner of this only with half the cost. Corresponding it is considered that the grants will be available at the new NSRF, which is expected to be announced soon, with the first evidence speak for maintaining the same levels, if not increase in the rate of grant.
On the same axis is expected to move soon and domestic entities. There is a time that has leaked from government sources that there will soon be the first SAVE – SELF-SUFFICIENT for business. This program until now only relates to dwellings, with grants to be enough in many cases, 85%. If implemented, the announcements, and the progress of the project is expected to be of huge interest. The professionals will be able to rid themselves once and for all from the cost of energy by contributing a very small amount.
4) Photovoltaics for businesses are considered an expense and do not include VAT
The shift to sustainable development in addition to the reduction in the cost of production contribute to long term economic prosperity of the business. Initially, because the solar panels are considered mechanical equipment, the purchase shall be a discharge to the VAT, To high investment is a calculated cost. In addition, the expenditure incurred for the purchase of the equipment is considered to be an exit for the company. This result can be included in the annual 10% depreciation for the next 10 years. This means that if a photovoltaic system costs €15.000 then for the next 10 years, the company will present a year costs € at €1,500, which will reduce the net profit and, therefore, taxes.
In summary, a professional who chooses to become self-sufficient in the energy required for their business through a photovoltaic system costing €15,000, in addition to benefiting from the electricity itself, also saves approximately €3,500, an amount they would otherwise have to pay in additional taxes. Therefore, it is easily understood that the financial benefits of switching to green energy and utilizing solar power provide the business with an immediate cash advantage over its competitors.
5) The photovoltaics for businesses become profitable investment in 3 years
The progress of the technology of the pv and the creation of giants in the industry of construction panels has created a plethora of options and prices for every pocket. A reliable solar system is estimated to cost around €800 per kW. This means that a company needs 15kW to meet the needs of expected to spend around €12.000. Let's assume that it does not use any of the grants mentioned above. The annual cost of the power supply before the installation of the pv is estimated at €9.583 while, then it drops to $ 5.967. The difference of $ 3.616 year is a particularly important chapter. Can be set aside or allocated to other activities of the company. In particular, if one considers that at a depth of 25 years which has the force of the contract, the final profit amounts to €90.400.
In this number, in fact, has not included the relief of taxation that was mentioned earlier and which is estimated to be in addition to €3,000. Neither the increases in tariffs of energy providers that are expected in the forthcoming period. Therefore, it is clear that investing in solar panels is a smart solution for every professional. The professional has to decide if it will now pay a sum of around €12.000, or if you chose to pay €93.400 to a depth of 25 years, provided, of course, there are no new increases in the price of the supply.
6) The law provides flexibility in the place of installation of the photovoltaic
Another big advantage of photovoltaic systems is the flexibility it presents the law relating to the place of installation. Allowed to be fitted in literally any space if this is legit. The most common options concern the roof or the terrace of the company. However, it is not, and a few times I have been selected more specific areas. For example, the facade of a building or the roof of a parking space. There is the possibility of the installation of solar panels to be held at the ground in the event that there is the necessary space.
The progress of technology has led to the minimization of the area required for a photovoltaic installation in up to 6 sq.m. per kW. Therefore, an installation like this in the example above was in the 15kW calculated that we will need around 90 sq.m.. at the same time, there is the possibility to be mounted even more efficient framework in order to reduce the space of the installation. The concrete, but, of course, they cost more than conventional photovoltaic systems. To sum up, with the features provided by the current legislation and the jumps made by the technology of photovoltaics in the last few years, it has become possible to install large systems limited on space, giving the owner the ability to maintain intact the greater part of the company for a possible extension or change of use.
7) The photovoltaics for businesses contribute the image of the company due to the green development
Another very important reason to invest in renewable sources of energy is the environmental footprint of the company. The protection of the environment is one of the primary objectives for the whole of humanity. In the last few decades, it is becoming an issue of major importance. The emissions of carbon dioxide transform the planet into a giant greenhouse with sustained increases of temperature and climate change. The awareness of the majority of the people and particularly the young generation has created a new kind of consumer. A common for those who prefer eco-friendly businesses. The examples of companies that survived the crisis, because they promoted the zero environmental footprint is increasing. These companies show the way of tomorrow.
Eco-consciousness is not a fad that will soon pass. Therefore, professionals need to evolve and be aligned with the standards of the time. The shift in the auto-production through green energy sources is the best proof that the professional has developed the eco-instinct and does not work the business at the expense of the environment.
8) Are ideal for businesses with seasonal needs
A large number of business displays increased energy needs certain months of the year and lower or zero some people, depending on the type of products or services that we offer. Net-metering (net metering) is the solution of the problem of the energy for these professionals as they have the right to use when you need the energy they produce throughout the year.
For example, a craft-based unit that operates from November until April to decide to install a photovoltaic system on the roof. The energy that will be produced during the months that the company will be closed is not lost, but remains available for consumption in the months that it works normally. Finally, because of the nature of the energy clearing, seasonal businesses can settle for a smaller photovoltaic system in comparison with what you will need the corresponding business if it worked all the time fully covering their needs without having to invest a lot of capital.
The conclusion of photovoltaics companies
As a professional who is interested to install photovoltaic business, you may be thinking that it would be a risky move. Maybe you thought that it was a move that would make her only the very large companies, as well as usually we read in the MEDIA on large projects for large companies. Maybe see it as an expense incurred in the business, ignoring or not knowing the multiple benefits.
In this article, we hope to prove the opposite and gave you a solution, presenting a way to reduce operating costs and increase the profitability of your business.
Photovoltaics for businesses from ΙΩΝΙΚΗ Renewables: By your side at every step
At ΙΩΝΙΚΗ Renewables, we have experience in the study and installation of photovoltaics. We have installed photovoltaic parks as well as systems for residences and businesses throughout Greece, including islands. We handle all the processes, from potential financing to the study, the submission of the application, the installation, and we deliver your photovoltaic system turnkey.
Are you interested in photovoltaic; Click on the button “I Want a phone appointment” below, fill out the form and a competent engineer will contact with you to solve all your questions and to guide you to the right decision.
Read also
8 reasons for investment in net metering photovoltaic systems for businesses
George Kotakis
Electrical Engineer |
ΙΩΝΙΚΗ Autonomous
Key Points of the Article:
- The photovoltaics for businesses not only relate to the large industries.
- The photovoltaics for businesses reduce the operating costs of the business.
- Businesses can achieve increased profitability with a solar panel.
- The investment achieves payback in 3 years.
- There are often grants with great rates.
If we could describe with a few words the main responsibility of an entrepreneur, regardless of industry, we would say that this is to find solutions to everyday problems.
The issues that has to deal with a businessman on a daily basis is a lot. Customer issues, questions of officials and issues of the daily running of the business.
The main concern of an entrepreneur is the reduction in operational costs of the business-and that will increase the profitability.
Did you know that a photovoltaic system it may give this kind of solutions in a business?
Electricity has always been the driving force of the business and one of the biggest monthly expenses. Net-metering with the production of energy through photovoltaic systems is the solution to the problem of energy.
Following are eight reasons why every professional should be directed to the solar panels for businesses.
1) The cost of electricity is constantly increasing
The constant increases in the price of emissions (CO2) are leading the energy market in an era of constant markups. It is characteristic that a ton of pollutants, ranging in prices over 50 euro. Six months ago the price was 25 euro. This duplication has resulted in the wholesale electricity price to skyrocket from 45 euro, always speaking of cost per megawatt-hour, in 99,8 euro while the dam of eur 150 is expected soon be overcome. The conditions that shaped require energy suppliers to pass on the costs to accounts, as well as, in the framework of the competition, their profit margin was already quite reduced. This is the reason that the industries of the country have come already faced with increases in the order of 30%. In fact, can't be answered with certainty what price and when will they stop the constant increases.
It is easy to understand that the electric current is becoming an unbearable cost for any professional who monitor their monthly bills to show a constantly increasing while big winners from the situation that is shaped emerging entrepreneurs had a chance to be converted to autoproducers of the energy required by the business. Now, any price increase implies a reduction of the depreciation time of their investment. In this way maximize the benefit from the shift towards green energy.
2) Photovoltaics for businesses reduce production costs
Every business in order to produce products or services using factors of production, the cost of which is included in the final price of the product. The electric current, the raw materials and the cost of personnel are the main expenses of a business. The specific costs play an important role in the formation of price in order to have a sustainable profit for the professional. Therefore, any increase in any of the above leads to the entrepreneur in the dilemma of whether there will be passing on the increase to the consumer or if it will absorb the increase, reducing the profit in order to remain competitive.
When, however, the increases are on the order of 30%, as it happens, the last time the accounts of the power supply, then the rise in the price of the product produced is a one-way street. Any differentiation in the price is the equivalent of differentiation, either positive or negative, of the position of the company compared to the competition. Therefore, a business that remains unaffected by the increase in the supply can keep you and fixed the prices at the same time that competitors are forced to change the pricing policy in order to remain profitable. Automatically, the investment in photovoltaic systems leads to an improvement in the position of the company and in ensuring the economic growth and prosperity.
3) There are often grants that cover large percentages
The shift towards renewable energy sources is an immediate priority for the European Union, resulting in continuous incentives through grants for new investments in the photovoltaic sector. Additionally, by tightening the regulatory framework governing emissions and increasing fines for member states that continue to generate electricity through lignite plants, governments are compelled to seek solutions. The above reasons translate into financial resources, either from state funds or through the National Strategic Reference Framework (NSRF)... These can be utilized by professionals to significantly reduce the cost of installing a photovoltaic system.
In more detail, NSRF completed at the end of 2020 included a special grant for professionals who wanted to become autoproducers energy through a photovoltaic system, covering the 50% of the investment. That is, the installation of a photovoltaic system 20kW, which is enough to fully cover the needs of a company charged the owner of this only with half the cost. Corresponding it is considered that the grants will be available at the new NSRF, which is expected to be announced soon, with the first evidence speak for maintaining the same levels, if not increase in the rate of grant.
On the same axis is expected to move soon and domestic entities. There is a time that has leaked from government sources that there will soon be the first SAVE – SELF-SUFFICIENT for business. This program until now only relates to dwellings, with grants to be enough in many cases, 85%. If implemented, the announcements, and the progress of the project is expected to be of huge interest. The professionals will be able to rid themselves once and for all from the cost of energy by contributing a very small amount.
4) Photovoltaics for businesses are considered an expense and do not include VAT
The shift to sustainable development in addition to the reduction in the cost of production contribute to long term economic prosperity of the business. Initially, because the solar panels are considered mechanical equipment, the purchase shall be a discharge to the VAT, To high investment is a calculated cost. In addition, the expenditure incurred for the purchase of the equipment is considered to be an exit for the company. This result can be included in the annual 10% depreciation for the next 10 years. This means that if a photovoltaic system costs €15.000 then for the next 10 years, the company will present a year costs € at €1,500, which will reduce the net profit and, therefore, taxes.
In summary, a professional who chooses to become self-sufficient in the energy required for their business through a photovoltaic system costing €15,000, in addition to benefiting from the electricity itself, also saves approximately €3,500, an amount they would otherwise have to pay in additional taxes. Therefore, it is easily understood that the financial benefits of switching to green energy and utilizing solar power provide the business with an immediate cash advantage over its competitors.
5) The photovoltaics for businesses become profitable investment in 3 years
The progress of the technology of the pv and the creation of giants in the industry of construction panels has created a plethora of options and prices for every pocket. A reliable solar system is estimated to cost around €800 per kW. This means that a company needs 15kW to meet the needs of expected to spend around €12.000. Let's assume that it does not use any of the grants mentioned above. The annual cost of the power supply before the installation of the pv is estimated at €9.583 while, then it drops to $ 5.967. The difference of $ 3.616 year is a particularly important chapter. Can be set aside or allocated to other activities of the company. In particular, if one considers that at a depth of 25 years which has the force of the contract, the final profit amounts to €90.400.
In this number, in fact, has not included the relief of taxation that was mentioned earlier and which is estimated to be in addition to €3,000. Neither the increases in tariffs of energy providers that are expected in the forthcoming period. Therefore, it is clear that investing in solar panels is a smart solution for every professional. The professional has to decide if it will now pay a sum of around €12.000, or if you chose to pay €93.400 to a depth of 25 years, provided, of course, there are no new increases in the price of the supply.
6) The law provides flexibility in the place of installation of the photovoltaic
Another big advantage of photovoltaic systems is the flexibility it presents the law relating to the place of installation. Allowed to be fitted in literally any space if this is legit. The most common options concern the roof or the terrace of the company. However, it is not, and a few times I have been selected more specific areas. For example, the facade of a building or the roof of a parking space. There is the possibility of the installation of solar panels to be held at the ground in the event that there is the necessary space.
The progress of technology has led to the minimization of the area required for a photovoltaic installation in up to 6 sq.m. per kW. Therefore, an installation like this in the example above was in the 15kW calculated that we will need around 90 sq.m.. at the same time, there is the possibility to be mounted even more efficient framework in order to reduce the space of the installation. The concrete, but, of course, they cost more than conventional photovoltaic systems. To sum up, with the features provided by the current legislation and the jumps made by the technology of photovoltaics in the last few years, it has become possible to install large systems limited on space, giving the owner the ability to maintain intact the greater part of the company for a possible extension or change of use.
7) The photovoltaics for businesses contribute the image of the company due to the green development
Another very important reason to invest in renewable sources of energy is the environmental footprint of the company. The protection of the environment is one of the primary objectives for the whole of humanity. In the last few decades, it is becoming an issue of major importance. The emissions of carbon dioxide transform the planet into a giant greenhouse with sustained increases of temperature and climate change. The awareness of the majority of the people and particularly the young generation has created a new kind of consumer. A common for those who prefer eco-friendly businesses. The examples of companies that survived the crisis, because they promoted the zero environmental footprint is increasing. These companies show the way of tomorrow.
Eco-consciousness is not a fad that will soon pass. Therefore, professionals need to evolve and be aligned with the standards of the time. The shift in the auto-production through green energy sources is the best proof that the professional has developed the eco-instinct and does not work the business at the expense of the environment.
8) Are ideal for businesses with seasonal needs
A large number of business displays increased energy needs certain months of the year and lower or zero some people, depending on the type of products or services that we offer. Net-metering (net metering) is the solution of the problem of the energy for these professionals as they have the right to use when you need the energy they produce throughout the year.
For example, a craft-based unit that operates from November until April to decide to install a photovoltaic system on the roof. The energy that will be produced during the months that the company will be closed is not lost, but remains available for consumption in the months that it works normally. Finally, because of the nature of the energy clearing, seasonal businesses can settle for a smaller photovoltaic system in comparison with what you will need the corresponding business if it worked all the time fully covering their needs without having to invest a lot of capital.
The conclusion of photovoltaics companies
As a professional who is interested to install photovoltaic business, you may be thinking that it would be a risky move. Maybe you thought that it was a move that would make her only the very large companies, as well as usually we read in the MEDIA on large projects for large companies. Maybe see it as an expense incurred in the business, ignoring or not knowing the multiple benefits.
In this article, we hope to prove the opposite and gave you a solution, presenting a way to reduce operating costs and increase the profitability of your business.
Photovoltaics for businesses from ΙΩΝΙΚΗ Renewables: By your side at every step
At ΙΩΝΙΚΗ Renewables, we have experience in the study and installation of photovoltaics. We have installed photovoltaic parks as well as systems for residences and businesses throughout Greece, including islands. We handle all the processes, from potential financing to the study, the submission of the application, the installation, and we deliver your photovoltaic system turnkey.
Are you interested in photovoltaic; Click on the button “I Want a phone appointment” below, fill out the form and a competent engineer will contact with you to solve all your questions and to guide you to the right decision.
