Solar Power is Cheap Power
Reducing costs is a good financial activity in these time of crisis. A major part of the cost in any business is electrical power. Installation of solar cells is, at present, at US$2 per watt-peak generated, based on the production cost of US$0.93 per watt for First Solar. Since sunlight generates 1,000 watts per square meter and assuming solar cell efficiency is at 10% or 100 watts-peak generated, a 1-meter square solar panel must therefore cost US$200. Assuming a factory with a 1,000 square meter roof, this cost is US$200,000. However, with a warranted 25 year lifespan, this is just US$8,000 a year.
The power it generates is 600 watts-hrs per square meter per day or 600 kW-hr per day for the 1,000 square meter roof. In one year this is 219,000 kW-hr per year or 109,500 kW-hrs assuming 50% cloudiness. At, US$0.10 per kW-hr, this produces power equal to US$10,950 per year. This is a savings of US$2,950 per year or a saving of US$73,750 for 25 years. Thus, a Business Finance loan of US$200,000 can have a US$72,000 or a total of 36% interest and still produce cheaper electricity. Thus, Small Business Finance loans spent on technology is a good business practice and Small Business Financing is a way to produce a greener and more cost efficient future.