With a rising demand for electricity, high prices of oil, and a growing concern for the environment, going solar is an excellent choice for alternative energy for a business of any size. Not only will a solar system help you attain the “Green” label, but it also provides instant returns on investment and reduces operating costs.
As the demand for electric power increases and our supply of non-renewable resources is shrinking, the cost of energy is on the rise. Due to events beyond your control, supplies may also be unpredictable at times. Owning your power with a solar system will not only relieve your business of these financial risks but will also reduce or eliminate the costs of electricity. According to statistics, the average monthly price of power for a business is $639 each month, which can be decreased by approximately 80% or more with a solar system. That is more than $500 in savings each month for your business!
Solar Loans and Cost of Solar
For businesses that don’t want to invest with a large upfront cash payment, there are great financing options available, helping you to lock in this lower electricity cost for decades. Data shows that businesses pay off their PV system’s cost within three to seven years. Prices for buying and installing a system have notably decreased in the last few years by approximately 80%, making solar an excellent strategic financial decision for your business, no matter the size.
The cost of a solar system for your business depends on your energy usage. Solar panel costs are calculated as dollars/Watt. The average residential home installs a system of roughly 6.2 kW or 6,200 Watts and for a business, a solar system could range in size anywhere from 10kW to 250kW. Contact Everlight Solar today to calculate the appropriate size and cost of a solar PV system for your business.
Federal Incentive Tax Credit (ITC)
One benefit of solar energy is the Federal Investment Tax Credit. Owners of recently installed solar PV systems receive a federal tax credit for 26% of the total cost of the system, as of 2020. Some state governments also offer incentives for solar.
As a business, there is an additional advantage of depreciation. The Modified Accelerated Cost Recovery System (MACRS) allows for a business’s investments in particular tangible property to be recovered over time through annual deductions for tax purposes. Specific solar equipment is qualified for a five-year cost recovery period.
The “Green” Market
There are many other reasons for a business to invest in solar power, aside from financial incentives. Many current and prospective customers tend to seek sustainability-oriented companies. Consumers love products and service that hold the “Green” label! A solar installation will provide you with an excellent promotion for your company and show your support for the local community.
Investing in a solar PV system is a smart, strategic investment for your business, providing consistent financial returns, quick payback periods while also saving you a ton of money! Solar is also a great marketing tool that will help businesses to avoid the volatility and inflation of electricity prices today!
