Why solar for your company or business?
Businesses consume electricity for lighting, HVAC, computing, and production so it is no surprise that solar is currently a hot topic with business owners, company executives and facility managers. We know your commercial electricity costs are high and getting higher. Data from the Rocky Mountain Institute says utility bills represent 30% of operating costs for the average business location. Regardless of size, businesses across the country are including solar energy solutions in their long-term business planning. Strategic business plans that reduce operating expenses with solar can provide savings you can reinvest in growing your core business. Solar solutions should be part of any modern strategic marketing plan and show your commitment to going green as a differentiator over your competitors.
Adding solar panels help reduce your local electric utility costs and by combining energy storage in your solar installation, you can increase your savings by an estimated 20-50 percent and move toward complete energy independence. Not only can you save on your utility bills, but solar can keep your operations running – even during power outages. From our powerful energy storage options to our large commercial solar panels, we can help design a solution that works for your business.
Commercial solar advantages
- Save on monthly utility bills
- Power storage for when you need it most – keep your machines running during power outages – cleanly without the need of generators
- Durability – high quality solar panels last between two and three decades
- Eco-friendly form of renewable energy – great for marketing your brand and showing clients/customers your commitment to going green
- Monitor usage in real time from anywhere in your facility
- Cost incentives make it affordable – from a Federal tax credit to your state’s range of programs to help you pay for your solar installation:
- Investment tax credit (ITC) allows you to deduct 26% of the cost of installing a solar energy system from your federal taxes. This decreases to 22% in 2021 and 10% in 2022 so timing matters.
- Accelerated depreciation – businesses can write off the value of their solar energy system through the Modified Accelerated Cost Recovery System (MACRS), accelerating returns on solar investments. Accelerated depreciation can reduce net system cost by an additional 30 percent.
- In addition, states have a variety of programs to help your business make solar cost effective – here is a link to the programs – https://programs.dsireusa.org/system/program?industrialresources
Formulaic ROI Strategies
Strategizing ROI gives you a perspective of how much money you’ll save over the entire lifetime (typically 25 to 30 years) of a solar project. A comprehensive ROI formula for commercial solar will include:
- Your current utility kilowatt-hour (kWh) rate and any demand charges
- Your annual bill without solar
- The projected annual increase of utility costs over 25 to 30 years based on historical increases
- The projected amount of solar kWh your system will produce over 25 to 30 years
- The lifetime costs associated with the solar installation, including installation costs, inverter replacement, operations and maintenance cost
- The estimated value of all solar rebates, performance based incentives, and tax incentives received over 25 to 30 years
- Any applicable taxes
- Any applicable interest/loan costs