The realization that humans need to work with the environment rather than change or govern it came a little late. Efforts to go green are never wasted, however, and small changes can still make a big difference.
The Benefit of Going Solar
One way that real estate investors can contribute is to install green energy sources on their property. The initial investment for solar panel installation can be steep. The return on investment, however, comes in reduced electric bills. Installing photovoltaic solar panels on your commercial property, with the help of TerraSol Energies, Inc., now means you are locking in the cost of electricity for the next 25 to 40 years. With rising oil prices, the cost of power will continue to rise as well.
The return on your investment can depend on the location of your property. The same number of commercial solar panels on a property in Delaware will have a different rate of return compared to the same type of property in Hawaii. Although solar power will come through despite heavy cloud cover, this can reduce the amount of electricity produced. That said, some green energy can still be better that complete dependence on the grid.
Upfront Cost Versus Return on Investment
Apart from saving on your total electric bill, the government gives tax credits to those who install green energy sources. This tax credit can cover a majority of the upfront costs. And in the future, should you decide to sell the property, these solar panels can increase the valuation of the structure based on how much electricity your system produces.
Space and Storage
Solar panels take up a lot of space. This means the more electricity you want to produce, the more space you will need. Another concern is that storing the excess energy generated can be expensive. One solution for this is to use solar electricity during the day and draw power from the grid at night.
Is It Worth It?
It comes down to your budget and your estimated use of the solar panels. Weigh the cost of the projected bills against the installation and potential for return. As long as it all balances out, going green may save you some extra greens.