Take Advantage of Tax Incentives
Business owners should pay attention to what they can gain by taking advantage of the 30% federal solar tax credit.
Depending on where your business is located, there may be even greater tax incentives. States are offering up to 70% cost savings on the cost of a new solar system.
One incentive offered by many states is net metering, a process that enables you to produce power with your panels and feed it back into the grid. At the end of the month, your business will only be charged for the net amount that you used versus what you put into the grid.
In addition, you can benefit from renewable energy credits, property tax exemptions, sales tax exemptions, and more, depending on your state.
The ultimate effect is that a commercial solar system is more affordable for the bottom line of your business. Prominent tax incentives offered currently offset the cost of the initial system, and they can help with another area: slashing monthly expenses.
Minimize Monthly Expenses
If you are looking for a better method to manage your bottom line, you could cut your monthly expenses and electric bills by relying on solar power. At the moment, only 1% of commercial electricity is powered by solar. Companies can see significant savings if they decide to go with sustainable solutions like solar.
The efficiency of solar panels has dramatically increased over the past few decades. When solar was first being introduced in 1960, it operated at 14% efficiency. By 2020, it jumped to an impressive 47%, which means your company will receive a significant return on investment (ROI).
Businesses that rely on solar power will have more discretionary income for categories that truly matter, so you can turn ROI faster and invest more back into the business every month.
Consider the case study of Cranford Business Park. After making the switch to solar, it generated up to 99% of its energy from its solar system, which effectively lowered the monthly operating costs of the company. Your business could benefit in much the same way with a jump to renewable energy.
Reinvest in Your Business
After you cover the initial investment in your solar system and reach ROI, solar enables business owners to generate revenue from the roof or the parking lot (depending on where the panels are located). One way to do this is through net metering or storing electricity that can then be “sold” back to the electric company for profit.
Solar systems for business also enable you to reinvest what used to be spent on electricity back into the company. This returns your investment sooner and saves you money on an ongoing basis for the foreseeable future.
If you think that you may want to sell the property in the future, an installed solar system could yield bigger dividends. Residential properties see a 9.9% increase with solar systems in New Jersey, for example. Commercial properties may see similar boosts in their market value.
Using Solar as a Growth Opportunity
Ultimately, savvy business owners can use the implementation of commercial solar systems as a growth opportunity for the company. Many creative methods exist to market your new sustainable initiative, from sending out a press release and sharing your upgrade on social media to hosting a party to celebrate the sun.
Even if you decide not to make it public knowledge that you went with solar systems for business, you can still make a big impact on the growth of your bank account. It starts with lower monthly energy costs, which can immediately be reinvested into the business for increased growth.
With all these tax incentives in place, solar just makes more sense from the perspective of your bottom line.
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!
