Putting a solar system on a commercial space has many advantages. If you’re thinking about investing in a PV system for your business consider the following:
- Tax credits
- Lower energy costs
- Lower demand costs
- Lower energy rate risks
- Higher asset value
- Accelerated depreciation tax benefits
- Business promotional value
- Standby power potential
- Equipment grant opportunities
- and more
Solar energy for your business reduces operating costs, reduces your carbon footprint, and locks in energy costs for years to come. Many Fortune 500 companies have already invested in large scale solar projects that have reduced their bottom line and increasing lifetime savings. Solar is a fantastic investment for small to medium size businesses. According to research conducted by EnergySage businesses with PV systems save an average of 75.3% on electricity costs.
The cost of installing a PV system for commercial use has dropped considerably in the past five years while electricity costs have continued to rise. But their are even more factors that make solar more attractive:
- The Federal (ITC) Tax Credit: Owners of newly installed solar systems get a federal tax credit for 30% of the cost of the system. This incentive last until 2021 so your if you are considering purchasing a system you still have time.
- Accelerated depreciation: Businesses can deduct 85 percent of the value of the solar asset from their taxes, providing another significant offset to the upfront cost of a system array.
- Performance-based incentives (PBIs): PBIs, including solar renewable energy certificates, are a way for solar owners in some markets to receive payment from their utility for the solar electricity that their system generates. These incentives can be significant and greatly enhance financial returns for system owners over the life of the system.
With both the federal ITC tax credit and accelerated depreciation, system installation costs can be reduced by about 60 percent. If cost is still an issue, most solar contractors offer financing options in the form of solar loans, allowing businesses to pay the installation costs over a longer period of time.
Commercial solar is on the rise. PV projects for businesses are growing at a rate of 40% per year. The tax incentives and cost savings can drastically improve your business’ performance.
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If your business is ready to install a PV system, you can find an installer here: