The Impending Energy Recession: What Your Business Needs To Know

As businesses navigate the post-COVID world, rising energy costs pose a significant challenge to their bottom line. Whether or not we actually enter a technical economic recession, an Energy Recession is likely already here and it is impacting businesses, driven by high energy costs.  It is crucial for businesses to understand that investing in solar power is a smart and necessary move for businesses to thrive in the current climate. 

A Looming Threat for Businesses

With energy costs skyrocketing by 400%, it's no wonder why businesses are bracing themselves for the impending pain and uncertainty. After all, energy is a crucial input for nearly every product, service, and business process.

However, amidst all the buzz surrounding a possible energy recession, there is one unifying theme that hasn’t received the attention it deserves. While businesses may resort to traditional cost-cutting measures when entering a period of slow growth, such as freezing hiring and reducing expenses, our leading-edge clients are opting for a different approach. 

From Cost-Cutting to Future-Proofing

Achieving energy independence fundamentally insulates businesses against unpredictable energy price fluctuations, ensuring stability in their balance sheets and certainty in an otherwise uncertain economy. Furthermore, this shift towards energy independence aligns with businesses' commitments to their ESG commitments, creating a mutually beneficial situation for both the organization and the environment.

At Smart Commercial Solar, we understand the importance of energy independence for businesses. Here are three reasons why investing in solar power can benefit your organization:

1. Solar power is cash-positive. This means that, from day one, the savings you make on your energy bills outweigh the cost of installing solar panels. You can expect a 3-4 year payback on the outright purchase of a 100kW system that will reduce your power consumption by 40%.

2. “Pay as you go” options are available. If the upfront cost of solar panel installation is a concern, we offer $0 down payment options. These systems generate energy at a rate that is 50% cheaper than buying it from the grid, and our team will handle all operations and maintenance for the entire term, reducing risk for your business.

3. Solar power helps businesses achieve sustainability targets. By investing in solar power, you can make significant progress towards your ESG commitments, showcasing your organization's dedication to sustainability. In fact, we know of businesses that have lost contracts due to their lack of interest in environmental goals.

The Path to Energy Independence

At a time when the energy crisis is not something businesses can afford to ignore, energy independence can be a game changer. Solar is no longer a ‘nice to have’. It’s a necessity for driving a sustainable business. And unlike earlier economic slowdowns, solar and aligned solutions now have the capability of effectively addressing the commercial damage that comes from this energy price volatility.

If your business is struggling with energy costs or would like to plan for energy independence, we're ready to help.