Solar energy is an ideal solution that can benefit auto dealerships both economically and environmentally. As concerns about energy inflation and dwindling natural resources become increasingly widespread, many businesses are looking towards alternative solutions to save on electric costs and reduce their carbon footprint. Auto dealerships, in particular, can benefit from investing in solar energy to reduce their monthly utility bills.
There are multiple ways that solar energy can benefit auto dealerships. This includes reduced energy costs, improved brand image, and being a long-term investment to secure their future. There are many different solar solutions available as well as tax credits and economic incentives that auto dealerships can qualify for.
Benefits of Commercial Solar Energy for Auto Dealerships:
Auto dealerships use a significant amount of energy for their daily operations, from lighting, air conditioning, and climate control to powering equipment and running customer vehicles. Installing solar energy systems can provide the following benefits to auto dealerships:
Reduce energy costs and operational expenses: With electricity rates on the rise, a solar energy system can help auto dealerships offset their energy bills while reducing operational expenses.
Long-term investment that can secure the future of the business: Investing in solar energy is an investment in the future of the business. Solar energy is a reliable and consistent source of energy that can be used for decades, reducing risks of energy price volatility in the future.
Environmental benefits and reduction of carbon footprint: Solar energy is a clean and renewable source of energy that does not produce greenhouse gas emissions. Using solar energy can help car dealerships reduce their carbon footprint and contribute to environmental sustainability.
Improve brand image and customer appeal: A car dealership that invests in solar energy sends a message to their customers that they care about the environment and are committed to sustainability. This can improve the dealership’s brand image and attractiveness to potential customers.
Commercial Solar Solutions for Auto Dealerships
There are several commercial solar energy solutions available for car dealerships, including rooftop installations, parking lot canopies, and integration with EV chargers.
Rooftop installations: Vast rooftop spaces can host solar panels that provide a clean and renewable source of energy. An added benefit is that the panels protect the roof from the elements, extending the life of the roof. Geoscape Solar client ACE FORD was able to cover 100% of their energy costs with their 248 kW rooftop solar energy installation.
Parking lot solar energy canopies: Parking lot solar energy canopies provide shaded parking spaces for customers and employees while also hosting solar panels. They can be functional, aesthetic, and add to the curb appeal of the dealership. Geoscape Solar client KINDLE AUTOMOTIVE was able to cover 100% of their energy costs with their 536kW solar energy canopies.
Integration with EV chargers: As electric vehicles become more popular, auto dealerships are incorporating EV chargers into their operations. Commercial solar powered energy solutions can offset the increased energy consumption from these chargers and provide a self-sufficient energy source.
Economic Incentives for Solar Installations
Auto dealerships might hesitate to explore commercial solar energy due to the upfront costs of installing a solar energy system. However, Federal and State Incentives can reduce the upfront costs of solar installations for auto dealerships and typically yield a return on investment (ROI) for dealerships in 2 – 3 years. These include:
Federal Solar Tax Credit (ITC): The Federal Solar Tax Credit gives auto dealerships a credit to their taxes that is equal to 30% of the cost of installing their solar energy project.
Depreciation Deduction: Auto Dealerships’ solar energy systems are property assets with a basis of 87% of the purchase price. This basis can be deducted from commercial taxable income.
Net Metering: Surplus energy generated by solar panels can be sold back to the grid, reducing energy bills and providing extra revenue.
Solar Renewable Energy Credits (SRECs): Auto Dealerships that generate solar energy can earn SRECs, a revenue stream based on the amount of solar energy produced through solar installations.
Geoscape Solar specializes in design, financing, and installation of solar energy for Auto Dealerships. In today’s economy, commercial solar energy is a smart investment for auto dealerships looking to reduce their energy costs, improve their environmental impact, and secure their future. The economic incentives available can reduce the upfront costs of installing solar solutions, while net metering, and SRECs provide additional revenue streams. By investing in solar energy solutions, auto dealerships can boost their bottom line, stay ahead of the competition, and invest in their long-term solvency. Contact Us to discover more about how solar energy will benefit your auto dealership.
