5 Ways Solar Is Paying Off For Businesses
There’s never been a better time for business owners to install solar. Whether you’re a small business owner considering a system for your rooftop or a commercial building owner looking to lease out a rooftop array, here’s five reasons solar is a hot investment.
Business Tax Credits
The Solar Investment Tax Credit is a dollar for dollar reduction that applies to both residential and commercial properties. Businesses that begin construction on solar systems in 2022 will receive a 26% tax credit, those that begin in ‘23 will receive a 22% credit and from ‘24 forward a permanent 10% credit applies. Solar has been a huge contributor to the American economy, creating hundreds of thousands of jobs and generating billions of dollars here at home since ‘06 when the credit began.
Is your accountant getting on you about those fluctuating energy bills? Solar’s financial benefits go beyond the tax credit. Defray that upfront investment cost with the tax credit and then benefit
from the reduced energy bills. Solar owners have proven to reduce energy bills up to 75%. You’ll experience even more financial benefit from the next item.
If you end up going solar, it will make financial sense to tie into the grid. Net metering is a billing mechanism that credits you for any excess electricity that you add back to the grid. On those sunny days where your cells store up energy that you don’t need, that energy is sent back into the grid and credited back to you as an energy producer. On average, only about 20-40% of a solar system’s energy goes into the grid. With net metering, all that electricity can serve nearby customer’s loads and you can make a return. Talk about efficiency!
If your rooftop meets your state’s required specifications, you might be able to lease it out for a community solar project. As of now, 22 states and Washington DC have enabled projects for
community solar. The U.S. Department of Energy defines this as any solar project or program in which the benefits of a solar project flow to multiple customers, such as individuals, businesses,
nonprofits and other groups.
Customers in a solar community buy or lease a percentage of the panels in that array and receive a credit for the electricity generated by the system as if it had been installed in their
home. Solar communities allow people who otherwise cannot benefit from solar energy because of financial or geographic issues limitations to do so. Meanwhile, the business owner can benefit from a passive income stream with no additional capital expenditures.
Reduce your carbon footprint
Solar is a sustainable energy source which means it meets the needs of the present without compromising the ability of future generations to meet their own needs. It is also renewable and non-
polluting. By investing in solar as opposed to other energy sources, you are reducing your carbon footprint. You are doing the earth a solid! Do some research on rooftop leasing and if you find your rooftop qualifies, you can help even more!
Contact us any time to ask us questions about anything and everything solar!