For many companies, the second biggest budget line item is often the electric bill. Old infrastructure is contributing to higher bills as years go by, and there’s only so much investing in LED light bulbs can do to bring your costs down. Going solar can stabilize your monthly energy costs and help you gain independence from grid outages and rising fuel costs. Using some of the methods mentioned in this post can increase energy independence and even add some extra income for your business. Take advantage of the government solar investment tax credit (ITC) while it’s available.
Building a business is tough work and finding opportunities to cut costs and boost your bottom line is always a top priority. For many companies, the second biggest budget line item is often the electric bill. And there’s only so much investing in LED light bulbs can do to reduce your energy costs. Plus, when you’re completely reliant on the local electric utility, the rate you pay for energy can go up and up every year costing you more—it’s completely out of your control. Going solar can stabilize your monthly energy costs and help you gain independence from grid outages and rising fuel costs.
Commercial solar as an investment in your business
Solar energy installations completed in the next two years will benefit from a 26% tax credit due to the solar investment tax credit (ITC).
The rules are:
You must be the owner of the solar energy system.
If you lease any part of the solar energy system, your install may not qualify.
Investing in solar for your business today can help you make the most of this tax credit because in the next two years, the ITC will decrease, and continue to decrease, until it’s phased out. The business ITC credit will hold at 10% at the end of the program, while the residential component will phase out completely.
Commercial solar as an investment in your property
Adding solar to your property is an investment in the property itself. Buyers and business owners see the benefits of owning their own means of solar energy generation and are willing to pay a premium for it. Solar for a business means fewer delays or shutdowns due to grid failures or weather-related grid outages. And if you can stay in business during the storm, you can weather all the ups and downs the market throws your way!
Solar as a selling point
With global warming and climate change trending in the news, consumers are more aware than ever of how their shopping habits can affect the environment, they’re choosing to go green when looking for companies to consume from. They want companies who aim for more sustainable practices at all points in the supply chain. Going solar is one of the biggest ways to prove to your audience that you’re invested in the future of your company and the planet.
Opportunities for solar at work
Rooftop solar works the same for businesses as it does for a home, but there can often be much more space available to add panels and generate more energy.
- Panels can be added on top of parking garages, distribution centers, warehouses, and other large buildings.
- For properties where rooftop isn’t an option, solar parking canopies can generate clean solar energy 24/7 while providing shade and shelter for customers and employees.
- If a business has unused land, ground mounted solar panels can offer a flexible and plentiful opportunity to generate clean solar energy.
Financing commercial solar
There are many financial institutions offering zero down commercial loans for solar. It’s seen as a safe investment with a reliable return. And with the federal ITC 26% tax credit, you can reduce the overall cost of going solar while cashing in on a lower monthly electric bill. If net metering is available, businesses can sell excess solar energy generated back to the grid to further reduce their monthly bill.
Purchase power agreements
Another way a business can invest in solar is through a purchase power agreement (PPA). With a PPA, you don’t own, operate or maintain the system. A company or businessowner agrees to buy the energy generated from the solar energy system installed on their property, but does not pay for or own any of the equipment. A business is essentially leasing the space for the solar panels in exchange for affordable energy that costs a fraction of what traditional energy costs. This can help immediately lower energy bills, however, incentives like the ITC credit would not be available for your business as this tax credit would be claimed by the owner of the solar energy system.
Reaching corporate sustainability goals and beyond
Investing in your business by going solar is becoming more of a draw as prices of traditional energy are on the rise, and the cost of going solar is on the decline. Solar is affordable, with incentives and programs helping to reduce overall costs. Commercial solar offers independence from the grid and stabilizes costs that can help businessowners better predict profits and appeal to today’s ecologically minded consumer market. And with most systems lasting upwards of 25 years or more, going solar is a forward-thinking investment in the future of a company’s operations and a commitment the future of our planet.
This blog post was written with Fiverr, the author is a solar enthusiast Colleenfallon
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