> Why dont many companies convert to solar power?

Why dont many companies convert to solar power?

Posted at: 2015-05-24 
in long term its cheaper and its waaaayy better for the environment so is it just laziness i really dont get it.

Because the major banks are holding all the capital.

Still, it is becoming more cost effective each day: http://www.installeco.com/commercial-pro...

and energy prices are on the rise.

>i really dont get it.

That's because you don't have any "skin in the game". You think ...cheaper...environment...laziness.... But if you are wrong there is no cost to you.

If being wrong could crash your career, wipe out your life savings, and destroy your reputation, you would want to be a lot more sure of your facts.

If you were running a company, there is a cost of being wrong. In the absence of a massive government sugar daddy taking other people's money and giving it to you, solar power is usually not cheaper or more reliable than just buying power from an electric company. People running businesses that don't go bankrupt tend to do real cost studies.

There are exceptions, but you asked a very general question.

>so is it just laziness

Lazy people do not run successful businesses.

They do understand that they need power to operate a business, and generally for a very reasonable price the local power company will sell it to them. They can also have engineers and accountants crunch the numbers to see if "solar power" makes economic sense if need be.

And when the numbers come back that solar would cost more and transfer the headaches involved in generating power from the power company to company management....

>why dont many companies convert to solar power?

If "solar power" makes economic sense, then it makes sense for the power companies to install it and make the process transparent to companies that buy their power.

Why would a company want the added capital cost and headaches of becoming their own little power company when a expert company can do it cheaper with no capital outlay by the company?

Many companies actually are converting to solar power among them large factories, In farms they have many uses. Some examples are to provide electric energy for pumps,the heat needed for some industries like chicken processing factories. The initial cost can be somewhat high but at the long term the photovoltaic installation will pay for itself and will be independent from the electric power companies. The photovoltaic panels are expensive and usually are supposed to have a productive life of 25 years. The necessary batteries have a shorter life but will not be so expensive to replace.

The problem is that some industries cannot afford the initial cost. Some may need some orientation about the advantages of using solar power. As the demand increases the cost in the future may be higher.

Even small companies could make good use of photovoltaic systems. They can begin with a small system using the power company as a backup

Its not cheaper, in the short run or the long run yet. There are hidden assumptions in the long range projections made about the cost. We've been stung this way before, with slick salesmen promising maintenence free gear that will last for 50 years. Then we get it out in the real world and it lasts 12. That's based on bitter experience. I love the idea but they haven't yet got the cost down far enough to justify the expenditure. You are also completely ignoring the cost of the money itself. Look up Return on Investment. That's ROI in economics speak to see what I'm talking about.

Given the assumption that alternative and renewable energy is the future your question is right, however companies don't really care about anyone else's future beside of their. Solar panels could raise their reputation, decrease fixed costs on the long run, but they are expensive. Having economy crises also not something which helps them deciding on this.

Solar power is expensive to buy and install

Energy is only avaible during day

Energy is only avaible suring sun time.

Well I got full marks on the question sooooo

You said it- in the LONG term. Most companies aren't concerned with anything further out than the next quarters profit margin.

It's not very efficient. It takes way too many solar panels to make a small amount of electricity.

in long term its cheaper and its waaaayy better for the environment so is it just laziness i really dont get it.