How Solar Power Cuts Costs

The debate has long been whether solar power is a more cost-effective energy to power a facility as large as a warehouse or distribution center. The answer is that solar can cut energy costs significantly, given the right government and utility policies, electricity rates and amount of sunshine.

According to the U.S. Energy Information Administration, the cost to produce 1 megawatt-hour of electricity from coal was $102 in 2018. Producing the same amount of electricity using solar power cuts the cost in half to only $50. When looked at on an industrial scale, solar power can cut the energy costs of a warehouse by more than half.

Operating a More Sustainable Warehouse

There’s also money to be made in solar. Most warehouses have flat roofs, which are excellent for solar panel installations and can provide the owner an opportunity to partner with a solar company. In a partnership, a solar company pays rent to install their panels on the warehouse’s roof. Renting out every inch of usable space maximizes warehouse revenues.

Solar-powered warehouses offer multiple benefits worth consideration. Read more about Prologis’ solar program and the benefits of a solar-powered warehouse on the Environmental Stewardship page of the Prologis 2018 ESG Impact Report.

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