Why Consider Commercial Solar Energy Installation?
As the technology for solar energy continues to advance, commercial solar energy has the potential to save businesses and building owners more money each year. Below are some of the top reasons businesses should invest in solar power.
Benefits of Commercial Solar Energy
Tax Benefits of Going Solar
The Investment Tax Credit (ITC) from the federal government gives businesses that install a photovoltaic (PV) solar system a 30% tax credit on the cost of the system. There is no cap amount for the ITC. Any unused portion of the tax credit may be able to be used in subsequent years. State government and local utility rebate systems also have reduced the overall costs of all solar energy systems installed for your business.
Net Metering to Offset or Eliminate Your Power Bill
Most states also have a net metering policy. Net metering is when a customer only pays for the net amount of electricity they use. With the net metering option, businesses with a commercial solar panel system can store the excess electricity their solar system generates as credits. You can receive a credit for up to 100% of your electric use at retail price.
Additionally, several states exempt the value of a renewable energy system from business owners’ property taxes. Unlike other improvements, which are likely to increase a property’s assessed value, some businesses do not have increased property taxes even though the value of the building will increase with the addition of a solar power system.
Other Benefits of Solar Energy
Accelerated Depreciation
In addition to government tax incentives, businesses can take an accelerated five-year depreciation on the cost of the system with the Modified Accelerated Cost-Recovery System (MACRS). While your company receives cash flow from a power company for your solar system for 25+ years, the total value of the solar system (in terms of upfront costs) will be taken out of gross income over the five years allowed by MACRS. This results in a lower tax liability over the initial five years the system is installed.
Don't Worry About Increased Electric Costs
On top of lowering operating expenses, solar power can help guard against fluctuations in the power markets. Aside from seasonal swings in utility rates due to high consumption (ie. summer and winter months), average electricity rates seem to increase annually by 5.5%. Investing in solar power allows a business to financially insulate itself from these increases by producing its own electricity. By guaranteeing a specific electricity rate with solar, businesses can take the variability out of their utility costs and instead categorize utility costs as a fixed expense.
Operating Advantages with Solar
Installing a solar system can dramatically reduce a business’s operating expenses and improve the financial bottom line. In virtually every system we have installed, the corporate utility costs have significantly declined, even to the point where the savings can pay for the solar system. The financial investment in most solar power systems will not only cover the initial costs but will pay for itself ten times over.
Low Maintenance / High Reliability
Big Dog Solar’s system installations require virtually no maintenance and operate with zero additional noise. For most business roof structures, access to the system is easy, allowing for quick, efficient post-installation checks, if needed. Manufacturers design sturdy solar panels made with tempered glass and non-corrosive aluminum to withstand most natural elements, such as rain or hail. In fact, most solar panel manufacturers even offer a full warranty for 20-25 years. Meaning you could have clean electricity for at least 25 years from a system that is equally functional and even more reliable than the standard electrical utility.
