Choosing to power your business with solar electricity is not only beneficial for the environment, but it can also save you a lot of money in the long run. Here are some benefits to installing a commercial solar panel system:
The cost of installing a solar system for your business can be intimidating. However, there are financing options and tax credits to help reduce the upfront costs.
Reduced Electricity Bills
Energy costs are one of the most significant expenses for many business owners. The cost of electricity is rising and the aging commercial power grid is becoming less reliable, putting pressure on businesses to reduce their overhead and find alternative energy sources.
With solar panel installation, a business can reduce their utility bills by reducing the amount of electricity they use on a monthly basis. This can help them save money and increase their profits.
Moreover, a commercial solar panel system can be paired with a battery storage system to store excess electricity for later use. This can be useful during blackouts or during a natural disaster.
Commercial solar panels can also be used to light up signs or message boards. This can add to a building’s reputation and draw more business.
Increased Property Value
Commercial solar panel installation is one of the most effective ways for business owners to reduce their energy costs and increase their property value. The benefits are many, and include reduced energy bills, financial incentives and credits, environmental impact and a positive public image.
However, the exact amount of extra property value a commercial solar system will add can be tough to pin down. It's also important to consider the unique challenges of a commercial solar project, such as whether the property has a building roof or a carport.
A commercial solar system can help business owners attract new customers and employees by demonstrating their commitment to sustainability and environmental awareness. This is especially true for small businesses which often depend on word of mouth and a loyal customer base to survive.
Tax Incentives
Besides the federal solar tax credit, there are also state incentives that can help reduce the overall cost of your solar panel installation. Several states offer a rebate on energy bills based on the amount of power that your system produces, or even one-time subsidies to install a solar panel.
The federal Investment Tax Credit (ITC) provides a tax credit equal to 26 percent of the total costs of your solar system. This incentive is available to both home and business owners, and it rolls over each year.
This credit is a great incentive for commercial solar installations, as it helps businesses lower their electricity bills. In addition, it can also increase property value.
The ITC can be combined with other financial incentives, such as the Modified Accelerated Cost Recovery System (MACRS) and Bonus Depreciation. The ITC applies to the gross system cost, including solar panels, racking, circuit breakers, and energy storage devices. It can also include sales and use taxes on the equipment.
Increased Reputation
Whether you own or operate a small business, Solar system for commercial use power can be a great way to boost your reputation with existing and potential customers. People are looking for companies that care about the environment and have a low carbon footprint.
In addition to this, solar energy production has the added benefit of protecting your business from grid supply problems such as blackouts and power line damage. With a commercial solar system, you can store your excess electricity in a battery until it’s needed for a backup power source, allowing you to continue operating even if the grid goes out.
Moreover, solar panels are considered one of the best ways to increase the property value of your business premises. According to a study by Zillow, installing solar panels can increase a commercial property’s value by 4.1% on average in New York and other parts of the country.
