Did you know that the U.S. alone experienced a nearly 21% increase in solar electricity generation from 2021 to 2022? 

Plus, according to the International Energy Agency, global renewable power capacity is expected to grow by 2,400 gigawatts from 2022-2027, with renewables to account for over 90% of global electricity expansion over that time period.

In short: The solar energy industry is growing quickly, and it’s here to stay.

It’s also become a key part of many businesses’ strategies as they strive to reduce their footprints and boost their profits. Why? We detail several benefits of using solar energy below.

1. Enhanced Cost Savings

While the initial investment for commercial solar components and equipment may seem daunting, solar energy can help businesses save money over time. In fact, the average commercial business owner has seen a 75% decrease in cost on their monthly electricity bills. 

Additionally, many businesses using solar energy can take advantage of legislation like the Inflation Reduction Act, which is designed to offset the cost of solar structural components with direct tax credits and incentives, and the Solar Investment Tax Credit, which supports the growth of solar energy in the U.S.

2. Decreased Carbon Footprint 

By transitioning to clean energy sources like solar power, U.S. manufacturers can reduce their carbon footprint, mitigate climate change impacts, and promote a sustainable future for our country. Using solar energy can also help reduce air pollution and reduce the negative impacts of traditional fossil fuel-based power generation, as the carbon footprint of solar panels is roughly 20 times less than that of coal-powered electricity resources.

This benefit is also two-fold, as the SEC’s proposed climate rule, if brought into effect, will require companies to disclose information on their direct impact on climate risk. 

3. Improved Reliability

By generating electricity locally, solar power reduces dependence on imported fossil fuels and mitigates the impact of price fluctuations. Domestic energy becomes especially critical when supply chain disruptions reduce the immediate availability of fossil fuels and result in unexpected price hikes. 

In addition, photovoltaic panels themselves have proved long-lasting and reliable. In fact, a study by the National Renewable Energy Laboratory reported a median failure rate of 0.05% for these panels, meaning the likelihood of having to replace them is small. 

4. Scaled Energy Independence

Countries that rely on imported fossil fuels for energy are subject to price fluctuations and geopolitical risks. For instance, International Energy Agency research shows that fossil fuels accounted for 90% of the rise in the average costs of electricity generation worldwide in 2022.

By embracing solar energy and other renewables, U.S. manufacturers can reduce their dependence on foreign energy sources, enhancing energy security and promoting economic stability.

5. Escalated Economic Growth

The adoption of solar energy can lead to job creation and economic growth within the renewable energy sector, contributing positively to the local and national economy. According to the Interstate Renewable Energy Council, the U.S. solar industry saw a growth of 3.5% from 2021 to 2022, and the passage of the Inflation Reduction Act resulted in a number of announcements for new domestic, clean energy manufacturing facilities.

Reshore or Onshore Your Solar Parts

Incorporating solar into your business may also come with its challenges—especially if you're offshoring your racking components. World events like the COVID-19 pandemic and political unrest have undoubtedly disrupted supply chains, making it difficult to procure the parts you need to succeed. At Hynes, we have decades of experience partnering with global solar solution providers to reshore or onshore their operations, and we can assist you, too. Download this free white paper, “The Benefits of Reshoring and Onshoring for U.S. Manufacturers,” to learn how.