Benefits include reducing overhead expenses, making good use of unused space, and reducing tax liability, all of which frees up funds to invest back into the business for continued growth. With all the money that you save on electricity costs, you can reinvest in staffing, equipment upgrades, more programming, and other areas that desperately need your financial attention.
Here are the facts if you want more information on how businesses can benefit from investing in solar power.
Create Productive Options for Traditionally Wasted Space
Most businesses have a few areas that result in misused potential, and they are missing out on a great way to get the most from a solar energy system. For example, parking lots are often seen as dead space—a necessary part of doing business but a waste of square footage. Now, you can put solar panels over your parking areas to minimize out-of-pocket overhead costs. It’s a win-win for everyone: customers get a coveted shady spot, and solar power systems offset the cost of your business’s energy.
Consider this case study from Franklin Mutual Insurance Group. By installing a solar energy system in its parking lot, it was able to cover up to 73% of its utility costs.
Other tangible benefits can be seen in this case study. Solar energy systems also lessen one’s carbon footprint and have a similar environmental impact to planting trees or taking away miles spent on the road, all without the need for a drastic change to business function or flow.
Significantly Offset Utility Costs
Companies are at the mercy of utility companies and must pay when rate hikes take place. But depending on property exposure to sunlight, the square footage of the roof or parking lot, and the solar energy system put in place, businesses have the potential to offset up to 100% of their utility costs.
Cranford Business Park implemented a solar energy system for its property and now offsets up to 99% of its utility costs. That money can now be reinvested back into the business in the form of staffing, upgrading equipment, or more robust programming.
Reduce Tax Liability
Businesses that have a tax liability at the end of the year can use the tax credit awarded as part of the Inflation Reduction Act to offset the money they owe to the government. Under this act, companies that install solar energy systems can receive a 30% tax credit if they own their systems.
This means those who install solar energy systems through a power purchase agreement are not eligible for the tax credit. However, plenty of financing options will enable you to take advantage of this tax credit without having to make a hefty initial investment into a new solar energy system.
Keep in mind that this tax credit is non-refundable, so you will not be able to get cash back at the end of the fiscal year. However, it can roll over to the following year if you do not claim it in its entirety during the year of installation. Consult an accountant to make the best use of this credit on your upcoming tax bill.
The tax credits offered by the government will help the solar market grow an estimated 40% over baseline through 2027, so be sure to capitalize on this incentive as soon as possible. The tax credit will drop from 30% to 26% in 2033, so the sooner you go solar, the sooner you save. You will not want to miss out on bringing down the cost of your solar energy systems, as this can enhance your ROI timeframe considerably.
How Can Your Business Benefit from Solar Energy?
There are many ways that businesses can benefit from investing in solar power. Clean energy is a win-win for both the environment and the business. While lessening your carbon footprint, you can also reduce overhead to make your business more profitable. With the Inflation Reduction Act, solar energy systems are more affordable than ever before, so capitalize on the trend now!
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!