How does solar compare to traditional electricity in terms of cost?
- A lasting investment
- No ongoing fuel costs
- Electricity price stability
- Incentives and subsidies
- Energy independence
Overview
- Solar energy offers lasting financial benefits, with businesses potentially saving millions over 25 years by eliminating electricity bills, making it a valuable investment.
- Unlike traditional electricity, which relies on fluctuating fossil fuel prices, solar energy is powered by the sun, reducing long-term costs and ensuring price stability.
- The Philippine government offers incentives, making solar energy more affordable and providing potential revenue from excess energy generation.
Solar energy is becoming an increasingly popular alternative to traditional electricity, especially for businesses looking to cut costs and promote sustainability. If you’ve been considering switching to solar, you might wonder about the difference between solar vs traditional electricity in terms of cost.
In this article, we’ll break down the different factors that make solar energy a cost-effective solution when compared to traditional electricity. From the lasting value of your investment to the absence of ongoing fuel costs, we’ll show you how going solar can lead to better financial outcomes.
A Lasting Investment
While the initial cost of installing solar panels can be quite high, its long-term benefits often outweigh the upfront expense. This is because solar systems typically have a lifespan of at least 25 to 30 years, meaning your business can enjoy decades of reduced or even zero electricity bills after the system is fully paid off.
For example, a business in the Philippines with a monthly electricity bill of PHP 50,000 can expect to save up to PHP 600,000 annually once the solar system is installed. Over 25 years, that’s a total savings of around PHP 15 million. These long-term savings can make a significant difference in a company’s overall budget, allowing for reinvestment in other areas of the business.
Moreover, the value of your property can increase with the installation of a solar panel system. Many commercial properties with solar setups have seen higher resale values because of the long-term energy savings they offer. This added value makes solar not just an expense but an asset that provides ongoing financial benefits.
No Ongoing Fuel Costs
Traditional electricity generation relies heavily on burning fossil fuels like coal, natural gas, and oil. These power plants continuously consume fuel to produce electricity, which not only drives up energy costs but also contributes to environmental degradation through carbon emissions and pollution.
The cost of these fuels can fluctuate based on market conditions, geopolitical events, or supply chain disruptions, leading to unpredictable and often rising electricity prices. For businesses, this unpredictability can mean higher costs and reduced financial stability.
Solar energy, on the other hand, solves this issue by relying on the sun — a free, renewable resource that doesn’t require any fuel. Once your solar panels are installed, they generate electricity with no ongoing fuel costs, significantly reducing your long-term energy expenses.
Electricity Price Stability
As the prices of oil and natural gas fluctuate, so do electricity rates, often leading to significant cost increases for businesses. This uncertainty makes it challenging for businesses to accurately predict and budget for their energy expenses, potentially causing financial strain.
Unlike fossil fuels, solar energy is a free and renewable resource, unaffected by market fluctuations. This means that businesses can mitigate the impact of rising electricity prices and enjoy consistent, lower energy costs over the long term.
Solaric — the leading solar provider in the country — provides reliable solar systems and expert guidance to help your business achieve energy stability and control its budgets. By investing in solar power with us, you can future-proof your business’ energy needs.
Incentives and Subsidies
The Philippine government offers a range of subsidies and incentives to encourage businesses to adopt solar energy. These financial benefits are aimed at reducing the initial costs of installing solar systems and promoting the use of renewable energy.
For instance, under the Renewable Energy Act of 2008, companies can enjoy income tax holidays for up to seven years and exemptions from certain local and national taxes, making it more affordable to invest in solar energy.
Additionally, the government provides businesses with the option to take advantage of the Feed-in Tariff (FIT) system, where they can sell excess energy produced by their solar panels to the grid for a fixed rate. This not only helps offset installation costs but also creates a potential new revenue stream for businesses.
Energy Independence
In the Philippines, brownouts and blackouts are a common occurrence, particularly during the dry season when demand for electricity is at its peak. For instance, the recent yellow alert in Luzon highlighted the risk of power interruptions due to insufficient power supply.
With solar panels and battery storage, your company can generate its own electricity, store excess energy, and use it during power outages or peak hours, avoiding the unpredictability of grid supply.
At Solaric, we offer tailored solar solutions that can help your business maintain continuous operations, even when the grid is down, while significantly lowering energy costs in the long term.
Key Takeaway
When comparing solar vs traditional electricity, the advantages of solar energy are clear. Solar power not only offers substantial long-term savings and energy independence, but it also provides stability and environmental benefits.
If you’re ready to make the change and embrace the benefits of solar vs traditional electricity, Solaric is here to help. Contact us today for a free consultation and start maximizing your savings with the best solar technology available.
