In this issue where we celebrate a few exciting national and local recognitions we have earned by virtue of our growth, it is worth reflecting on why we have had so much success.
For one thing, we are fortunate to be working in an industry where every day we help local businesses and community organizations save real money on energy while creating jobs and contributing to a more sustainable world. While those outcomes are very motivating, we are also lucky to be participating in a growing and dynamic industry. Solar has had a compound annual growth rate of 58% since 2010(1) while the cost of solar panels has declined by 80% in the past five years. Solar energy still only represents .05%(1) of all energy in the US, but the industry deployed 9.5 GW(2) so far in 2016 and 26%(2) of all new energy generation that came online in 2015. In short, the energy industry is undergoing a significant transformation, and it is truly fun to be on the front lines of this dynamic change.
Why is there so much growth? The simple answer is: the Free Fuel from the Sun leads to significant energy savings for a lot of organizations. Our job is to educate people about these facts and then help them structure their solar project in a way that meets their needs and goals. The key points we always try to communicate to help clients appreciate why solar makes sense and why they should move forward now include:
- The value of incentives cover the majority of the costs.
Investment Tax Credit covers 30% of the cost and
MACRS Accelerated depreciation over five years.
- The value of the Free Fuel from the Sun creates 6 to 10 times the return on net investment.
The return in energy over the life of the array on the net cost after incentives.
- The effective cost you pay for energy sourced this way is about 3 to 4 cents per kW hour.
- Structured correctly, in many cases you can be cash flow positive in one year.
We work hard to help our clients capture as much of the value of the savings as they can, educating them on options and sourcing partners and financing that brings these projects to fruition. Success is always some combination of hard work and good luck, and we would be the first to acknowledge that ours has been fueled by big doses of both. We certainly work hard at getting the message out and helping our customers maximize the potential savings they can achieve with solar. At the same time, we appreciate that industry growth has significantly brought down prices, and incentives were recently extended—adding more savings and value to customers who pursue solar energy.
If you are ready to consider solar for your business or non-profit, please reach out to talk to one of our professional solar developers. We take great pride in collaborating with clients on their specific situation and developing solutions that make sense for you.
Finally, we are grateful to our customers and hard-working associates who have partnered with us to harness the Free Fuel from the Sun to create significant energy savings. It has been a pleasure sharing this journey with all of you, and we look forward to continuing to help many more clients save money with solar.