Solar Energy is Made for Manufacturers

Yaniv Kalish

Solar Energy is Made for Manufacturers

Certain industries are better suited than others for solar energy. The manufacturing industry is at the top of those sectors that check off many of the boxes solar advisors require before recommending a switch to solar panels. The New York State Energy Research and Development Authority (NYSERDA) says that “The cost of producing products is something every manufacturer considers in the effort to stay globally
competitive. A few ways you can control those costs is by improving energy and operational efficiencies and optimizing manufacturing processes. Investing in improvements in these areas is a proven way to reduce costs, improve product quality, and increase output.”

How do you know if your company is a good candidate for solar power? Here are three good reasons that manufacturing companies should consider solar panels.


  1. Go Big or Go Home
    Manufacturing companies require industrial grade machinery, which means big buildings to house that equipment, which means extra-large roof space. This is ideal for solar. Also, often those machines are running 24/7, leading to high energy bills. Companies that install solar panels can eliminate some, if not all, of their monthly energy bill, saving anywhere from hundreds of thousands to millions of dollars. You can also count on energy prices fluctuating, whereas solar energy locks in a predictable cost stream. After paying off the solar panel system, which can be financed without having to dig into the capital expenditures budget reserved for equipment purchases, you’ll enjoy free energy for the life of the system, which can be up to 40 years.
  2. New Way to Bring in the Green
    As the manufacturing industry gets more competitive, and with the new import tariffs by the government, it’s time to look in a different direction for a boost to the bottom line. On top of the energy savings outlined above, Federal and State solar tax incentives cover the majority of the solar system cost, and provide double digit returns. Plus, most manufacturing businesses own their buildings. This puts them in a unique position to almost instantly increase the company’s value and create a competitive cost advantage. Furthermore, by reducing the carbon footprint and going green, the company is more attractive to investors, future buyers and potential customers. The company also has some great news to share with investors, the board and/or the media.
  3. Business as Usual
    Didn’t budget for the switch to solar? No problem! The Federal and State incentive programs offset over half of the system cost, and a variety of financing options exist such that any given manufacturing company would not have to invest directly. There are two Federal tax incentives now available: (i) Receive a tax credit worth 30% of the system (i.e., if a system costs $1 million, you will receive a
    Federal tax credit for $300,000). (ii) Depreciate 100% of the system value in the first year. State incentives vary depending on the state where the business is located, but NY, NJ, MA, MI, and CA are some examples of states with exceptional incentives in place. In addition, solar companies offer financing solutions – such as a solar loan or a solar lease – that allow solar savings and incentives to fund the project. Once the system is installed, there is little to no maintenance. A commercial solar energy system often comes with a 25-year warranty and maintenance contracts, so that there’s no stress about a broken panel.

Solar energy is a bright idea for your business and for the environment. When you’re ready to take the next step, call a solar consultant like SolarKal. They’ll help you navigate through the often complicated transition to sustainable energy plus they’re agnostic when it comes to installation options and partners.

SolarKal, a solar advisor, was recognized as one of the Top 100 Energy Startups. They were also announced as a winner in New York State’s 76 West Clean Energy Competition. They help companies navigate the transition to solar, from the first site visit to the final installation.




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