In the last few years, the US corporate world has seen an increase in solar power adoption, with companies like Walmart and Apple taking the lead in solar energy installation. Given the cost-effectiveness of solar energy, this is hardly a surprise.
Installing solar panels for your business can allow you to supplement your energy needs, reducing your dependence on non-renewable energy sources. And luckily, solar panel prices have dropped over the years, making solar panels affordable for small and medium-sized businesses. So, you don’t need to worry about costs.
If you wonder how your business will benefit from solar panels, discover five advantages of solar power for businesses in the guide below.
A consistent energy supply is vital for the smooth running of a business. Therefore, most businesses incur high energy costs during their day-to-day operational activities. But, with solar energy, all that can change.
According to EnergySage market data, commercial property owners can save up to 75% on energy costs by using solar power. The average period within which a business can repay its solar installation costs is three to five years. Thus, the remaining energy savings are pure profit. This should be a relief for any business.
Installing solar energy for your business will reduce your reliance on the national grid. This will make your business less vulnerable to power cuts and outages, reducing interferences with productivity. Additionally, storing energy on your premises ensures that you have a backup power supply that you can use if the main power supply fails.
Local, state, and national government levels support green energy sources. So, they offer tax benefits and financial assistance to organizations that shift to solar power. Some tax benefits that businesses gain after installing solar power include the following.
Solar Renewable Energy Credits (SREC)
This benefit will allow you to recover your solar power installation costs from the energy produced by your solar power system. One SREC to 1000 kilowatt-hours and government frameworks have made it mandatory for electric companies to compensate solar power users for every SREC they produce from solar equipment.
A federal government program called the Modified Accelerated Cost Recovery System (MACRS) allows solar energy users to write off their solar panel systems in the first year. This is unlike typical equipment depreciation deductions, which federal tax authorities spread over a product’s entire life.
Accelerated depreciation will improve your cash flow, allowing you to finance your solar energy installation costs.
26% Federal Investment Tax Credit
The US federal government allows solar power users a 26% tax credit on the overall costs of solar energy installation projects from January 1, 2020, to December 31, 2022. So, if you install a solar power system for your business before the end of this year, you will earn the 26% Federal Investment Tax Credit.
Using a renewable energy cost for your business communicates your commitment to sustainability. This will attract environmentally conscious customers to your business. Becoming a green business will therefore give you a competitive advantage.
Additionally, going green using solar energy will put your business on the path to achieving LEED certification, which is one of the most ambitious sustainability goals in the corporate world.
Unlike alternative energy sources such as mobile generators, solar energy systems will not take up too much space on your premises, helping you save on space. Additionally, a solar energy system runs silently, so you won’t have to deal with noise disturbance complaints if you have set up your business in a residential area.
Whether you have a large or small business, you stand to benefit greatly from solar power. Contact us today for solar product and installation services and start experiencing the above benefits.