“Never depend on single income. Make investment to create a second source.”
↝↝ Warren Buffett
Who knows better than the genius businessman and master investor Warren Buffet that a second investment is the best asset an entrepreneur can own? And do you know what Mr. Buffett’s second investment is? It’s an investment in solar and wind power – the master man invested in a company that aims to deliver power from renewable energy sources.
Businesspersons who own commercial buildings or industries (no matter big or small) and are currently paying heartbreakingly high electricity tariffs in India should focus on two things: commercial rooftops and solar systems.
Commercial rooftops and on-grid solar systems are like bread and butter – they go well together. The electricity rates for businesses in India are no less than ₹14 to ₹16 per unit. Instead of paying electricity bills in lakhs, what you can do is put the rooftop to use and install a solar system.
So, if you have a commercial rooftop and you’re bothered by the utility bills you get each month, this post is custom fit for you. Dive in and explore the financial benefits of installing a solar system on your commercial rooftops for solar panels.
Top 4 financial benefits of installing solar panels on commercial rooftops
#1. You’ll save big on utility bills
Electricity bills for commercial establishments take a significant chunk of money. You are spending serious money when you’re using hundreds of units every day and paying at least ₹14 or ₹16 per unit.
Why not invest that money in installing a solar system?
Here’s why it’s a wise financial decision to invest in solar rather than paying hefty electricity bills.
Suppose you require one hundred units of electricity daily. It means you’re paying the electricity board a minimum of ₹42,000 to ₹48,000 a month. This money will amount to ₹5,04,000 to ₹5,76,000 in one year.
If you invest even 12-13 lakhs rupees in installing a 25 KW solar system, the cost will break even in 3 to 5 years. And a solar system will continue to generate electricity for 25-30 years. It means you’ll get free electricity after the cost breaks even for as long as your solar system lasts.
And the savings we’re talking about is in crores of rupees. You could invest it somewhere else.
#2. Temperature control will lower the bill further
This benefit directly applies to commercial buildings that are made of glass. Glass can neither retain heating nor cooling. Hence, the electricity used is way more than it would have been had your office had concrete walls.
In such cases, the electricity bill is even higher. On the flip side, when you have solar systems on your commercial rooftops, you will get free solar electricity. Even if you have to import electricity from the grid, if someday the power generation is a little less due to rain and clouds, the bill will be significantly less.
It’s a win-win investment.
#3. You’ll get tax benefits
Yes, you’ve read it just fine – installing solar systems on commercial rooftops gives you tax relief. The only condition is that you should fall in the tax bracket of 30%, and if you do, this pointer is a savory treat for you.
We’ve tabulated the reason below.
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Solar systems on commercial rooftops |
Any asset of the same value as that of the solar system |
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The accelerated depreciation you can claim against the cost of the solar system is a whopping 40% |
The accelerated depreciation you can claim against any other asset of the same value is 5% |
#4. Cookie financial benefits
Here are a couple of other financial benefits that might not look that big on the surface, but their impact in terms of savings is enormous in the long run.
The second way is that the discom might purchase those extra units from you; hence, you will profit from it. Nonetheless, do not intentionally invest in a system that produces more electricity than you can consume. Even if the discom pays for the solar electricity you supply, they will buy it at nominal rates.
Conclusion:
Having on-grid solar systems grab a spot on top of your commercial rooftops will reduce your dependency on electricity from the grid to a considerable extent. Hence, you’ll save a lot of money on utility bills.
There could also be times when you’ll become the supplierrather than the consumer. The financial benefits of having solar won’t cease to amaze you.
In a nutshell, you must get one and enjoy the benefits you’ve read in this post since they’re all true.
