ROI and Your Bottom Line
Increasing your bottom line is one of the greatest benefits of a solar energy system. But when will your solar panels produce an ROI that makes sense for your business and get you on track to enjoy the full benefits of solar? The answer is sooner than you expect: solar ROI has exponentially shortened over the past several years.
Whether you watch the news and are concerned with global politics, the environment, or humanitarian issues or simply want to move toward a goal of energy self-sustainability for your business, the benefits of solar will help your organization meet your personal energy-independent future. According to the environmental publication EcoWatch, there’s great news on this front. The US is one of the world’s leading producers of energy from all sources, relying on other countries for only roughly 8% of imported crude oil needs. In fact, Americans have more options than ever to move closer to the ultimate goal of energy independence, particularly with solar options.
According to a 2022 study on solar panel installation, worldwide producers of solar are rapidly approaching the point of “grid parity.” This is when the power produced by the sun that is then stored and utilized, termed photovoltaics (PV), is reaching an energy production efficiency equivalent to that of traditionally produced power sources, such as fossil fuels. In fact, according to this study, the Internal Renewable Energy Agency has concluded that the capacity of solar power has increased by a factor of ten from 72.04 GW in the last decade to over 707 GW in this decade alone. Additionally, the same report states that as grid parity has increased substantially during the last ten years, the cost to manufacture solar panels using the latest PV technology has decreased from $1.7 per watt in 2011 to approximately $0.2 per watt in 2020. With infrastructural updates and newer technologies, it makes sound financial sense for businesses to generate their own clean energy.
The Benefits of Solar Make Financial Sense
Along with state and local tax benefits, the US Department of Energy has outlined significant tax incentives for a business installing a solar energy system. In December 2020, Congress expanded upon its promise of great tax incentives, providing 26% tax credits for solar panel systems installed between 2020 through 2022. As of August 2022, the Inflation Reduction Act has extended this at 30% through 2032.
You can also lock in current state incentives at the time of installation. As of 2022, thirty-six states offer some form of property tax incentives, such as exemptions to install solar panels, and twenty-five states offer sales tax exemptions. Property tax exemptions enable commercial property owners to exclude the “added value of a solar system from the valuation of their property for taxation purposes.”
Additionally, according to the US Department of Energy, the Solar Investment Tax Credit (ITC) is a tax credit that can be claimed against your business’s federal corporate income taxes for 30% of the investment incurred of a solar PV system during that particular tax year. Business owners will also enjoy a 30% tax credit for solar installations taking place before the end of the 2024 calendar year.
ROI and Future Generations
The benefits of solar aren’t just financial or valuable public relations incentives for your organization. By converting to solar energy, your business can create a more immediate ROI for the planet and future generations. You can start making a positive environmental impact the moment that your solar energy system receives permission to operate.
According to the International Energy Agency, the energy obtained by solar PV for 2022 is expected to account for up to “60% of global renewable power.” But how much can your business or organization affect its own carbon footprint? As reported by the US Department of Energy’s Energy Information Administration, “an average 400 W solar panel generating 1.5 kWh per watt per year will offset 510 pounds of carbon dioxide emissions.” Your business can make a huge positive impact toward reducing its operational carbon footprint with solar.
Customers Wanting You to Go Green
According to a recent study, more than one-third of global consumers are willing to pay more for environmentally-friendly products and services. In fact, many demand that you “go green.” Of those consumers surveyed, over “85 percent of customers have become greener in their purchasing” in recent years, putting their wallets where their consumer behavior trends are.
Take the Next Steps
Geoscape Solar makes it easy to install, finance, and enjoy the benefits of solar energy. The solar engineering team works closely with you and your business to create a customized solar energy system that fits your property and energy needs.
Geoscape Solar offers customized financing options, which include no money down, traditional cash purchase, power purchase agreements, third-party investments, and lease options.
Geoscape Solar provides your business the pathway to energy independence, reduced utility bills, and state-of-the-art solar energy systems, which enable your business to quickly achieve its ROI and receive significant energy savings.
At Geoscape Solar, we help businesses utilize solar energy for profit. Your business will become energy independent, be able to decrease utility costs, and leverage available solar incentives for a quick ROI.
To discover how installing solar energy on your property will increase your business profitability, contact one of our energy specialists!