With rising electricity demand, increasing oil prices, and a growing concern for the environment, going solar is an excellent alternative energy choice for a business of any size. A solar system will help you attain the “Green” label, provide instant investment returns, and reduce operating costs.
As the demand for electric power increases and our supply of non-renewable resources shrinks, energy costs continue to rise. Due to events beyond your control, supplies may also be unpredictable. Owning your power with a solar system will relieve your business of these financial risks and reduce or eliminate electricity costs. According to the U.S. Energy Information Administration, the average monthly price of power for a business is $659. A solar system can decrease this by approximately 80% or more. That is more than $500 in monthly savings for your business!
Solar Loans and Cost of Solar
Great financing options are available for businesses that don’t want to invest with a large upfront cash payment, helping lock in this lower electricity cost for decades. In fact, data shows that companies pay off their photovoltaic (PV) system’s cost within three to seven years. Prices for buying and installing a system have recently decreased by approximately 80%. This price reduction makes solar an excellent strategic financial decision for your business, regardless of size.
The cost of a solar system for your business depends on your energy usage. Solar panel costs are calculated as dollars/watts. For a business, a solar system could range from 10kW to 250kW.
Federal Incentive Tax Credit (ITC)
Additionally, another benefit of solar energy is the Federal Investment Tax Credit. Owners of recently installed solar PV systems receive a federal tax credit for 30% of the system’s total cost as of 2020. Some state governments also offer incentives for solar.
As a business, there is an additional advantage of depreciation. The Modified Accelerated Cost Recovery System (MACRS) allows for a business’ investments in particular tangible property to be recovered over time through annual deductions for tax purposes. Specific solar equipment is qualified for a five-year cost recovery period.
The “Green” Market
Financial incentives aside, there are many other reasons for a business to invest in solar power. Indeed, many current and prospective customers seek sustainability-oriented companies. A solar installation will provide you with an excellent promotion for your company and show your support for the local community.
A solar PV system is an innovative, strategic investment for your business. Solar is also a great marketing tool that will help businesses to avoid the volatility and inflation of electricity prices today. Solar panels provide consistent financial returns and short payback periods while saving you a ton of money!
