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The self-storage industry is booming, and with that boom is bringing an increase in competition. For your self-storage business to stand out in a crowded marketplace, it needs to have clear, strong differentiators that directly lead to an increase in revenue.
And here’s one differentiator you might have overlooked: solar power.
Solar power is becoming more and more commonplace at self-storage facilities due to the many benefits it can help unlock.
Here’s a look at things to consider when evaluating if solar power is right for your self storage investment — as well as a rundown of the many benefits solar power offers.
Make Your Initial Investment
Let’s be clear from the start: Solar power requires a significant upfront investment.
If you’re struggling to access capital, you may not be able to choose solar power.
However, if you can find the money for installation, you’ll enjoy a substantial return down the road (more on this in a moment).
The average cost of installing photovoltaic cells (a fancier term for “solar panels”) at a single-family home is $40,000.
Expect installation to cost more at your self-storage facility. How much more?
That depends on any number of factors, including the size and footprint of your facility.
Perfect for New Construction
It’s significantly easier and less expensive to install solar power at brand-new facilities than it is to retrofit an existing facility.
For that reason, solar power is often a better fit for self storage companies that are in expansion mode.
For example, if you have multiple existing self storage facilities that are delivering a nice cash flow, use that cash flow to fund solar power at your next facility.
The most straightforward and manageable path is choosing solar power as you build and expand with new facilities.
Look for Tax Credits in Your Area
There’s one fast and easy way to offset the cost of solar power installation: tax credits.
You can find tax credits available through your state government, city or even through your neighborhood in some cases.
The federal government also offers a 30% corporate tax credit related to solar power. (The federal tax credit allows you to deduct 30% of the cost of installing a solar power system from your taxes.)
Depending on where you live and what tax credits are available to you, solar power may be a more viable option.
However, be sure to explore your options and exhaust every possibility.
Tax credits can significantly lower the upfront cost of solar power, which accelerates your path toward ROI.
Enjoy a Strong Return
How does solar power deliver a strong ROI for self storage facilities?
Installing solar panels at your storage facility significantly lowers your operating costs.
Facilities that offer climate-controlled units can reap a tremendous benefit from solar power.
Solar power can offset the bill to maintain the air conditioning for said units.
Electricity prices are volatile and vary from state to state, making it hard to determine an exact amount of money saved.
Energy Sage has published a helpful table that shows much homeowners in various states can save on electricity over 20 years by switching to solar:
- Arizona: $16,866
- California: $29,424
- Colorado: $14,216
- Florida: $17,976
- Massachusetts: $30,523
- Maryland: $19,026
- New Jersey: $19,655
- New York: $26,637
- Texas: $13,720
- Washington: $10,483
Don’t forget: These are figures for single-family homes.
Your storage facility’s monthly electric bill is dramatically more — and you stand to save far more if you switch to solar power.
Advertise Your Eco-Friendliness
There’s one last way to boost your ROI when you switch to solar power: advertise it.
Studies show that about 35% of consumers are willing to pay a little bit more for eco-friendly services.
So make sure they know your business is eco-friendly!
Advertise your use of solar power all over your website, including during the rental process.
We have talked about differentiating factors for your facility.
There are only so many ways that self-storage facilities can differentiate themselves: price, location, etc.
Solar power can be the differentiator that unleashes a torrent of new customers you wouldn’t have secured otherwise.
Boost Your Self Storage ROI Even Further
Self storage facilities are operating in an environment with booming demand and high competition.
Are you in a position to get more than your fair share of the market and to boost ROI even further?
At StoragePug, we work with self storage facilities around the country, providing digital marketing services that get results.
Let us help boost your ROI directly through your website.
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