Commercial solar is a great investment for companies looking to lower overhead. Any low building with plenty of square footage can turn its roof into a powerplant, generating electricity that can be used on site, or traded with the utility for credit.
But in these uncertain times, many companies are reluctant to make new investments. They don’t know what’s around the corner for the economy or their customers – so they choose to wait until things settle down before going solar.
Here are three reasons why commercial solar benefits mean the smart plan is to go solar now. First, we know one thing around the corner – high electric bills. Electricity is not a new cost. It’s a constant charge that we can’t shut off when times are tough and it increases every year. That bill is coming anyway; solar can shrink it.
Second, federal incentives for solar are dropping in December. The federal Solar Investment Tax Credit (ITC) gives 26% of the cost of solar back to the business as tax credit. But in January of 2021, the ITC dwindles to 22% and 10% the year after. Waiting can add thousands to the project. Financing a solar project helps to spread the costs out over time, but gives quick cash infusion as the ITC is credited all at once on the front end of the financing.
Third, current tax codes allow accelerated depreciation of solar installation. When businesses make investments, such as in machinery or vehicles, they can deduct some costs from their taxes as those assets lose value over time. Solar costs can be deducted over a much quicker time frame. Aside from utility savings, most of the system pays for itself in tax savings from the ITC and depreciation. When combined with a new energy-efficient cool roof or battery storage, savings get even bigger. A tax professional can advise which tax advantages apply to a particular company.
What about multi-story office buildings? They may not have much roof space to accommodate solar, but they are stacked with energy draining office equipment. For those businesses, solar car ports are a great option. Carports keep employees dry in the rain, cars cool in the summer sun, and electric bills low all year. High-efficiency solar panels and a benefit for your employees on hot or rainy days.
It’s important to choose a solar company that can help guide you through the financial details, expertly install a right-sized and well-designed system, and stand by their work with a great warranty.