One of the most significant overhead costs for businesses is electricity. Unpredictable energy spikes and surges can add to the stress of running a business.
Purchasing solar panels gives you control of your energy usage. This can improve your business’s cash flow and expense forecasting abilities.
The Modified Accelerated Cost Recovery System (MACRS) offers commercial solar panel owners additional tax breaks. Contact your tax advisor to learn more about this incentive.
Lower Electric Bills
Electricity is a significant overhead cost for any business. A business can significantly reduce this cost by generating and using its energy. This can allow them to free up cash which can be used for other purposes like upgrading equipment or hiring new employees.
Solar panels have low maintenance costs, which will help you save even more money. This is because they don’t require any regular replacement or repair work. Adding solar power to your business is also a great way to demonstrate your environmental values and commitments. Today, customers and investors are looking for companies that try to be environmentally friendly. This will help you attract potential customers and increase your brand‘s reputation.
In addition to these cost savings, you will receive credits on your electric bill thanks to net metering. These credits are earned when the solar system produces more energy than is needed at a given time. The surplus energy is sent to the grid for credit on future bills. This allows you to avoid paying for grid electricity when using less than your solar system produces, such as during lower use times of the day or in a cloudy month.
The amount of money you save on your electric bills will depend on several factors, including local electricity rates and the size of your solar system relative to your energy needs. However, most homeowners see a return on their investment in just a few years.
Tax Breaks
One of the critical benefits of solar energy is that it is an excellent option for businesses because it’s an affordable alternative power source that offers an excellent financial return on investment. Unlike utility bills, which can spike suddenly, solar energy is a fixed cost that can help businesses budget for the future and make them more competitive in their industry.
One of the best benefits of installing solar panels on your business is the federal tax credit, which offsets a significant percentage of installation costs. However, this incentive will reduce in 2023, so it’s essential to act now to take advantage of the total savings potential of a commercial solar system. SEM Power can offer various financing solutions to help you switch to solar and take advantage of the ITC before it decreases.
Additionally, you may be eligible for additional tax breaks at the local and state levels. These incentives can range from property tax exemptions to grant funding. Check out the Database of State Incentives for Renewables & Efficiency (DSIRE) to see what’s available in your area.
In addition to these tax breaks, New York business owners can also take advantage of net metering, allowing them to earn credits from their electricity provider when their system produces more than their company needs. These credits can offset your utility bill when you use more energy than usual, such as during peak usage.
Increased Property Value
A solar panel system will increase a business’s property value, and fortunately, 36 states have laws exempting property owners from increased tax rates when they install a commercial solar system. However, the value a solar installation adds to your business’s property will depend on numerous factors, including the type of system you choose, its performance, and how new it is.
In addition to lowering overhead costs, solar panels can boost a business’s public image and help attract customers who prioritize sustainability. Many companies are hesitant to invest in renewable energy sources because they fear it will negatively impact their image, but going green can improve your business’s public image and attract eco-conscious consumers.
As more people turn to renewable energy, the demand for solar will create new jobs in manufacturing and construction. This bolsters the local economy and can give your business more prospective customers.
Another way a solar system can boost your property value is by eliminating your reliance on grid electricity. With a net metering system, your company can only pay for what it uses and may even be able to sell excess electricity to the utility company. This could save your business thousands of dollars in a single year. This will make your building more attractive to potential buyers, but it can only be achieved if the solar system is in good condition.
Environmentally Friendly
A business that invests in solar power invests in its financial future and a sustainable environment. The renewable energy produced by these systems offsets the consumption of fossil fuels that produce harmful emissions. This reduces the carbon footprint and gives the planet a chance to heal.
As a result of these benefits, installing solar panels can provide companies with a way to improve their corporate social responsibility (CRS) image. Many consumers today want to buy from companies that actively participate in environmental issues. Solar panels are a great way to show your customers that you value the environment as much as they do.
Additionally, a solar system‘s longevity can help minimize waste that would otherwise be created from manufacturing other types of electricity-producing equipment. Solar panels have a lifespan of up to 30 years and can be recycled if they need to be replaced.
For commercial buildings that cannot install solar panels on their roofs, ground mounts can also be installed in areas of the property where sunlight can reach them. These installations can increase the function of underused space and serve as a conversation starter for potential clients and customers. Plus, like any other investment, these installations have the potential to generate a return for your business that isn’t dependent on electric rates.