5 BENEFITS OF SOLAR POWER FOR BUSINESSES
The US corporate sector has witnessed a surge in commercial solar panel installation in recent years, with businesses like Walmart and Apple leading the way. This should come as no surprise given how affordable solar energy has become, and how much money it can save a business as well as the increased control on rising energy costs!
In the majority of cases, a commercial business will be able to greatly offset their energy demands and lessen their reliance on expensive grid-tied electricity by installing commercial solar panels on their building. And fortunately, the cost of solar panels has decreased over time, making them accessible to small and medium-sized businesses as well. This comes as a very welcome relief for many business owners who are often worried about getting a better grip on overhead costs of operation.
If you’re unsure of how solar panels can help your company, read on to learn the top 5 benefits of solar power for businesses.
1. Solar Lowers Your Businesses Energy Costs
A reliable energy source is essential for a company to operate efficiently. As a result, the majority of companies spend a lot of money on energy while running their daily operations. But everything can change with solar energy.
Owners of commercial properties may reduce their energy expenditures by a whopping 89%!!! by utilizing solar power, according to market statistics from EnergySage. An organization may typically pay back the cost of its commercial solar installation over only a three to five year period! The remainder of the energy savings is thus pure profit. Any business owner should be amazed and relieved by this!
2. Greater Energy Independence and Security
By using solar energy, you may lessen your company’s dependency on the power grid. Your company will be less susceptible to power outages and cuts, which will lessen production disruptions. Additionally, having energy storage on your property guarantees that you have a backup power source in case the primary power source fails. On top of solar battery backup systems, Watt Masters also offers more traditional commercial generator backup installation services in Phoenix as well.
3. Commercial Solar Has Many Business Tax Benefits
Governments at the local, state and federal levels support and encourage renewable energy sources. As a result, they provide financial aid and tax incentives to businesses that switch to solar energy. The following are a few of the tax advantages that companies might enjoy by installing solar:
Solar Renewable Energy Credits (SREC)
With this perk, you’ll be able to recoup the cost of installing your solar power system from the energy it generates. According to government regulations, electric utility companies are required to pay business solar power customers for each SREC they generate from solar equipment, at a rate of one SREC for every 1000 kilowatt-hours.
Accelerated Decreasing Value
Users of solar energy may deduct the cost of their solar panel installations in the first year according to a government program known as the Modified Accelerated Cost Recovery System (MACRS). Contrary to standard equipment depreciation deductions, that federal tax authorities apply throughout a product’s full life, this one is only applied once.
Your cash flow will be better because of accelerated depreciation, which will enable you to finance the costs of your commercial solar installation.
26% Solar Federal Investment Tax Credit
From January 1, 2020, through December 31, 2022, the US federal government offers solar energy customers a 26% tax credit on the total expenses of solar panel installation projects. Therefore, you will qualify for the 26% Federal Investment Tax Credit if you build a solar power system for your company by the end of this year. But don’t wait on this any longer! The solar tax credit rate is going down in 2023 and going away in 2024!
4. Being known as a "Green Business" has big benefits!
Utilizing renewable energy for your company demonstrates your dedication to sustainability. This will attract clients who care about the environment to your company. Consequently, being green will provide your company with a competitive edge.
Additionally, switching to solar energy will put your company on the right track to obtaining LEED certification, one of the most challenging sustainability objectives in the business sector.
5. More space and silence
Solar energy systems won’t occupy much room on your property, which might help you conserve space, unlike other energy sources like portable generators. Moreover, a solar energy system is quiet, so if you have your company located in a residential neighborhood, you won’t have to worry about noise complaint issues.
You stand to gain a lot from solar electricity whether your company is big or little.
If you are seriously interested in learning more about commercial solar installation for your business, get in touch with us. We are seasoned and highly trusted commercial solar installers in Phoenix, and have completed countless commercial solar panel systems, solar carports, ground-mounted systems and more. As Empire Caterpillar’s trusted right-hand electricians and solar panel installers, rest assured you can trust us, too. We even hold the record for one of the largest commercial rooftop solar panel installations in Phoenix!