There is a growing push for many businesses to become greener in their operation. One of the biggest ways that businesses do so is to cut their fossil fuel reliance by implementing commercial solar. For many business owners, the thought of getting a commercial solar installation can be intimidating, but when weighed against the possible benefits, having a professional solar installation for your business is looking smarter every day.
How Can Businesses Benefit from Commercial Solar?
There are several ways that businesses can benefit from commercial solar equipment, and while this list won’t cover all of the perks, it does cover some of the most common and most financially substantial.
Correctly Evaluate Power Usage
One of the biggest benefits is that it can give you a much deeper understanding of the power demands of your business. You may be surprised how many business owners simply pay their power bills without knowing how much power the business uses in an average month. This understanding comes from the in-depth analysis of your power usage during the initial consultation.
Power Usage Can Be Offset As Much As Possible
During the consultation and system design stage, the commercial solar system for your business will be optimized for both size and cost. There is no point in paying for a larger system that will produce more power than you can use, but investing in an undersized system is an equally pointless waste of money.
Your system will be designed to be exactly what your business needs, just like when residential systems are designed. The system will be tailored not only to the power needs of your business but also to the physical space and area available for installation.
Tax Benefits
There are significant financial benefits to the business in the form of tax cuts, refunds, and other incentives that may be available at the time of installation. The biggest tax incentive currently is the federal investment incentive which can provide a tax credit of up to 30% of the cost of system installation.
There is also the MACRS incentive, which provides an accelerated depreciation schedule for solar equipment, which provides a variable benefit based on the cost of the system. Additionally, the recently adopted updated tax code may provide business owners with an additional tax cut of 10% or more of the system’s price.
Rapid Payback
Depending on the final cost of your system, you can expect payback of the initial investment, in power cost savings, often in less than five years. This means that the money you save by not buying most of your power from the grid can equal the cost of your entire system in just a few years. From then on, it’s all return on your investment.
Substantial Cash Flow Improvement
For many businesses, the purchase won’t be in a lump sum, it will be financed over time. This means that it won’t take a significant initial investment, but it can drastically reduce energy costs from day one, making more of your cash available by reducing or even eliminating your monthly power expense.
Make Sure Your Solar Installation Is Done By The Best
With the growing popularity of solar installations, the number of companies popping up with zero reputation and skill is rising daily. Make sure you get the most out of your installation by ensuring that a local expert and leader in the solar space is the one to complete your installation. Reach out today to discuss your needs with a member of our commercial solar team.