Five Reasons Businesses Should Get Solar Power
Businesses around the globe are increasingly becoming more environmentally conscious as they realize the numerous benefits of clean, renewable energy sources. Solar power, in particular, is a viable option for commercial properties looking to leverage renewable energy. Here are the top five reasons why businesses should consider investing in solar power systems for their properties.
Significant Savings on Energy Costs
The most direct and tangible benefit of installing solar panels on commercial properties is the considerable reduction, or even total elimination, of power bills. With solar panels, your business can generate its own electricity, slashing your dependence on the utility grid and in everywhere currently except California roll your meter backwards.
When a solar installation company is determining how many panels to put on your building it takes your current power bill and aim for “100% offset” of the electricity. When you reach 100% offset it means you’re then generating enough power that you have essentially wiped out your bill from the utility company other than base service fees.
Over time, the money saved on electricity bills will more than pay for the initial investment in solar infrastructure. The typical payback period is 6-10 years with something you own. Over the lifetime of the solar system many commercial customers can see seven figures in power savings!
Increased Property Value
Installing solar panels not only lowers your energy bills but also increases your property’s value. Multiple studies have shown a strong correlation between solar installation and property valuation. With the growing demand for energy-efficient buildings, commercial properties equipped with solar power systems attract premium prices.
Typically the net cost of the system will be less than the increased value in the building. Businesses will more than likely see substantial equity day one. This is an exceptionally enticing point for businesses considering selling or renting out their properties in the future.
Lucrative Tax Credits
One of the significant advantages of solar power investment is the availability of tax credits. In many countries, including the United States, governments offer generous incentives to businesses that invest in solar power.
Typically 50% of the Solar system is paid for by tax credits in the U.S.
For instance, the federal solar Investment Tax Credit (ITC) allows businesses to deduct a significant portion of their solar system cost from their taxes. There is also the Federal MACRS, Bonus Depreciation which allows companies to elect to depreciate 80% of the basis while the remaining 20% is depreciated under the normal MACRS schedule.
Becoming an ESG Company
Transitioning to solar power enables businesses to embody the principles of Environmental, Social, and Governance (ESG) criteria. By investing in solar power, businesses are making a clear statement about their commitment to environmental sustainability. This not only helps in reducing the carbon footprint but also significantly enhances the company’s reputation among stakeholders, including investors, customers, and employees. In the current business landscape, ESG-focused companies tend to attract more investors and customers due to their ethical and sustainable practices.
Enhanced Power Consistency
Solar power systems can provide more power consistency by ensuring uninterrupted power supply, even during grid outages. This is especially critical for businesses that rely on constant power for their operations. Power outages can lead to significant productivity and revenue losses. By investing in solar power, businesses can safeguard themselves against such disruptions. A well-integrated solar system with battery storage can keep the lights on and operations running smoothly, ensuring business continuity even during power cuts.
Investing in solar power for commercial properties is a strategic decision that offers multiple benefits. It provides substantial cost savings, increases property value, and enables businesses to benefit from generous tax credits. At the same time, it enhances a company’s ESG profile and ensures more power consistency. By transitioning to solar power, businesses are not just investing in their financial future, but they are also playing a vital role in fostering a sustainable future for everyone. It’s an investment that is makes sense on every front.
