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Why Onsite Renewable Energy Generation Works for Manufacturing Facilities

Since the dawn of the industrial revolution, manufacturing plants have been among the world''s largest consumers of energy. But let's face it, supplying power to facilities of this magnitude isn't cheap. As a result, many factories are hoping to cut costs with onsite renewable energy generation. If your business is looking to move away from Utility power and thinking about switching to a renewable power source, here's what you need to know. 

Why are Industrial Solar Solutions Growing in Popularity?

Is your manufacturing facility looking into onsite renewable energy generation? Good news, you're not alone. Solar for industrial factories is quickly growing in popularity. Considering the fact solar photovoltaic (PV) systems have become 85% cheaper over the last decade, it's never been easier for factories to incorporate cost-effective, onsite renewable energy generation into their daily operations. And as we approach the new year, sustainable energy sources are poised to accelerate even further, as support for environmental, social, and governance policies are making its way to the forefront of several new federal energy regulations. 

How Do Industrial Solar Panels Benefit Manufacturing Facilities?

Much of the buzz surrounding onsite renewable energy generation is attributed to its rapid decline in price across the globe. In fact, at the end of 2016, solar power became the cheapest energy source in the world.  Combine that with ever increasing utility rates, and businesses start to see other solutions for energy.  

When it comes to industrial applications like factories or manufacturing plants, the beauty of solar energy is that you'll generate the most power during the day. This means large manufacturing plants can benefit from solar power without investing in a storage solution to accommodate nighttime energy consumption. 

Additionally, larger industrial solar systems are an even better deal in terms of long-term savings. Because large-scale, onsite renewable energy generation comes at a very affordable rate, your facility will see a fast break-even point—potentially in just a few years. However, the benefits don't stop there. Industrial solar solutions are also renowned for their: 

Reduced Energy Costs

Factories and warehouses can power large portions of their facility on solar energy alone. Once your solar system is installed, your warehouse or factory will gain energy independence, producing its own electricity, and reduce your reliance on the grid. Combine these together, and it's far easier for your business to save a considerable amount of money over time.

Fixed-Cost Savings

Solar power is a fixed-cost solution, which means by adding on-site renewable energy to your factory, you'll stay ahead of rising utility costs. And let's face it, California businesses pay the highest energy rates in the continental US (#1 in commercial rates, and #2 in industrial rates.) To make matters worse, the cost of electricity is predicted to increase in the future. Just look at your electricity costs today versus ten years ago, and you'll see it's more than doubled in price. Luckily, by investing in industrial solar solutions, you can lock in lower electricity prices and break free from utility rate hikes.

Environmental Benefits

To put it simply, grid electricity comes from dirty sources. Most grids generate power by burning fossil fuels, which releases harmful pollutants like carbon dioxide into the air. The U.S. The Environmental Protection Agency (EPA) reports that grid electricity production creates the second-largest share of greenhouse gas emissions, a known cause of climate change. Luckily, there's some good news: solar power is a clean energy alternative, helping manufacturing facilities reduce greenhouse gas emissions and improve their air quality. 

Low Maintenance

Most industrial solar solutions only require minimal maintenance to keep them in good condition. By conducting a few basic cleanings a few times a year, your solar panels will serve you for years down the road.


Well-maintained solar panels provide decades of dependable power, often coming with an average life span of 25 to 30 years. Additionally, solar panels are also far less susceptible to damage from wear and tear because they don't have moving parts. As a result, you can expect little to no unplanned repairs or emergency service costs.

How Manufacturing Facilities Can Leverage the Federal Solar Tax Credit

There's never been a better time for manufacturing facilities to invest in on-site renewable energy generation, as the state of California offers several incentives to encourage businesses to adopt solar energy. 

Investment Tax Credit (ITC), or also referred to as the "Solar Federal Income Tax Credit," is a program that enables qualified businesses who activate solar energy systems to be eligible for a 30% rebate on the cost of their solar energy system. 

However, it's important to note under the Inflation Reduction Act,  this can increase to 40% or 50% depending on the system details. Simply put, the federal solar tax credit allows your factory to take roughly one-third off the total cost of your solar installation. 

But, you'll need to act fast, as time is running out on this incentive. If your business is considering renewable energy, systems commencing construction in 2023 or after can only receive a maximum tax credit of 10%. That's why now is the perfect time to get in touch with a trusted solar provider

Pacifico Power: High-Quality, Dependable Industrial Solar Solutions

Time for your business to make the jump to onsite renewable energy generation? Schedule a free consultation with Pacifico to discover what we can do for you.