There’s no one-size-fits-all approach to solar panels. Myriad factors, approaches and incentives determine the right method for any given company. But different approaches are tending to produce similar results: long-term financial gains. The promo industry is full of individuals who rarely fail to take advantage of an opportunity. This particular opportunity is one you can see almost every time you look out your office window. ‘Three-Fold’ Motivation Justin Gray knew that installing solar panels for PromoCentric Inc. in New Hampshire, where he resides as president, was an investment, and not a cheap one. According to Gray, equipping PromoCentric’s headquarters for solar power cost roughly $500,000. But by the time the decision was made, he’d come to the conclusion that the payoff would be multi-pronged. “It’s three-fold, really,” Gray says. “There’s the eco factor. It’s a revenue generator, and there’s a marketability, if you will.” It’s been a little over a year since the installation was finished, and Gray can speak to the power of that marketability. “People who care about sustainability, we can speak their language,” Gray says. “That’s actually paid dividends. We’ve done quite a bit of business with solar companies, for example.” Vernon agrees, adding that they have clients who aren’t afraid to ask, “What are you doing in terms of ESG?” The answer, if you’ve installed solar panels, is “a lot.” Solar power works by converting natural sunlight into electrical energy, typically through photovoltaic panels. According to Energy.gov, the amount of sunlight that touches the earth’s surface in 90 minutes is enough to power the world for one year. This renewable and infinite source of energy is an easy and efficient way to offset carbon emissions, and its processes do not emit pollutants, therefore it does not contribute to climate change the way burning fossil fuels does. The solar panels at Geiger’s headquarters, for example, eliminate about 320,000 pounds of carbon pollution from fossil fuel power plants every year, according to the company. “Our building is 100% powered by the sun, and since put into service, it has prevented 1.3 million pounds of CO2 from entering the atmosphere,” says Chris McKee, chief revenue officer at Geiger. We will get into a few of the specific nittygritty details that companies need to consider when going in the direction of installing solar panels a little later, but the primary question that comes with any significant investment in a form of technology is obvious: Is it worth it? The answer from every company PPAI Magazine spoke to was an emphatic yes. “The investment was certainly substantial,” says Mike Braley, Gemline’s VP of operations. “But the long-term impact on the environment and a reasonably good payback made it an easier decision at the end of the day.” Payback times will vary depending on initial investment, state policies and a host of other factors, but even with different experiences and choices, every promo company that spoke to PPAI Magazine is happy with the product installed, turning the payback period into a simple waiting game, barely different from operations pre-installation. “The power production we collect is exceeding initial estimates and is therefore performing above our expectations,” Braley says. “There is very little maintenance required on our end, so it’s out of sight, out of mind.” For reference, Geiger’s initial payback time for their roughly $550,000 investment was 13 years, “and we’re right on target,” McKee says. The Vernon Company’s payback time was estimated at six or seven years and was later pushed to eight or nine based for reasons we will get into later, a development that that caused no regrets in the mind of Vernon, who recommends looking at the decision the way one would look at a bond. Gray used the word “no-brainer” when the numbers for PromoCentric’s 560 panels were in front of him. He sees it as an investment that pays off after seven years. “And then it’s a positive cash flow of whatever it ends up being,” Gray says. “I think $75,000 a year is what was calculated based on the square footage.” Must Read | Solar Power There’s no one-size-fits-all approach to solar panels. Myriad factors, approaches and incentives determine the right method for any given company. 60 • JUNE 2023 • PPAI
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