It is a brave new world out there, and more and more businesses are realizing the advantages of switching to alternative power. Of course, whenever new technology comes out, there is always some trepidation involved. Indeed, one is reminded of how afraid of Henry Ford’s “horseless carriages” many people were. When it comes to alternative power, there are in fact of a lot of advantages. However, there are some cons involved too. Here are some things that you should keep in mind when considering alternative power sources for your company.
Upfront Costs
There is no question that solar and wind are incredibly cheap to operate, even “free,” as it were. However, the main issue you will encounter is the initial cost to get the systems up and running. In 2017, you would have needed to invest about $2,000 per kilowatt for a business system and about $3,700 for a residential operation. Constructing a new natural gas plant usually costs around $1,000 per kilowatt. This is compared to a wind energy plant, which will cost about $1,200 to $1,700. Solar seems to be a better bang for buck and the growing industry of solar contractors are making it more affordable every year.
Energy Bill Changes
When it comes to your energy bill, it is all about cutting costs. Geothermal energy can cut costs by 70% in the right area. Even Google uses solar power. One of the things you always need to know about fossil fuels is that you are constantly losing money. Utilizing fossil fuels will usually mean that you are only operating at 92% efficiency tops, and this is with a new system no less. Older furnaces will usually operate at just 60% to 65% efficiency. On the other hand, a geothermal system normally operates at 300% to 500% efficiency, resulting in a lot of savings on your utility bills.
Potential Savings
A geothermal system will usually require an initial investment of $15,000 to $20,000. Granted, that is quite high, but if you normally pay $10,000 on your utility bills over the course of a year, then these geothermal systems could conceivably bring your costs down to $3,000 per year.
As you can see, in the short-term, switching to geothermal energy can be a bit of a painful endeavor. However, it is definitely worth all of your blood, sweat, and tears in the long run. It can certainly make you have a lot of second thoughts. However, even with the initial stressors, switching to renewable energy truly is a wise investment.
No matter what source of energy your business uses, you will need insurance to protect it from mishaps, accidents, and more. Talk with Alliance Insurance about the steps you can take to protect your business today!