Those of you who own a business know how tricky it can be to keep things up and running. There are bills to pay customers, to keep happy, and employees to care for. The last thing you are probably worrying about is solar power. However, if you have noticed some of the top companies making the switch to solar, perhaps this way of powering your business has caught your attention. If you think that going solar is only for the large companies with a ton of money, you are absolutely wrong.
In fact, solar power is ideal for all business owners—especially those who need to power their small to medium-sized businesses. It may not seem as if these large systems are affordable, but we are here to tell you that it’s almost impossible to NOT afford them. While it can make a positive impact on the environment, it can make just as much of an impact on your finances when it comes to figuring out your expenses for the year. Today, we would like to help you understand the potential savings that a solar panel installation could provide your company.
According to this study, the average commercial property owner pays about $1,950 in electricity bills. However, after installing solar panels, those bills went down to about $500. That’s a 75 percent savings each month.
Yet, this savings is still not enough to convince some business owners because they fear the cost of the initial installation. Keep in mind that time has passed since solar panel systems were first released to the public. The cost of buying and installing solar panels has gone down quite a bit in past few years, but electricity prices are not changing. Solar power is worth more now than ever before.
Watts and Cost
Your solar power system will be measured in watts, and the size you choose depends heavily on your type of business. The typical home needs a 7,000 Watt solar panel system to cover all their needs. That means that your business, depending on how much energy you need, will likely need something more than just that. Your business may only need about 25 kW, or you may need closer to 250 kW, depending on the size of the business.
While you may understand that your system will help you with your electricity costs over time, there are many more reasons why installing one of these systems can benefit your company.
Aside from the awesome savings on bills, you can also expect the following for your business:
- Federal Investment Tax Credit (ITC): One of the biggest financial perks for businesses looking to switch to solar is the tax benefits. Business owners who take the solar plunge receive a 30 percent tax credit on the cost of the system. However, this credit percentage will be decreasing in the upcoming years, so make sure to take advantage of this as soon as possible.
- Accelerated depreciation: With solar power, your business can deduct 85 percent of the value of the solar asset from your taxes. This can significantly help offset the initial cost of a solar array.
- Performance-based incentives (PBIs): PBIs are a great way for solar owners to possibly receive payment from their utility for the solar power they generate. This depends on the market, of course, but it’s worth looking into. These incentives can help with drastic ROIs.
Of course, these are just the immediate benefits. Some of the effects and perks are not felt until later on. For example, these panels can protect your home against electricity price volatility and even inflation. While the cost of electricity can change based on demand, solar power does not change. You will not have to account for unexpected electricity price changes.
The ITC and depreciation combination can actually decrease the price of the solar power system by nearly 60 percent. With those savings and the other options, this is an investment that should not be skipped. While some owners cannot afford to buy these panels up front, you would be shocked how many incredible options there are out there to finance the panels. Contact us today to learn more about solar loans and solar leases.
Of course, there are more benefits than just the financial ones. For example, you could win more customers. Many consumers these days are attracted to businesses that are environmentally conscious. Also, a solar installation project is a great way to promote your company and reach out about sustainable energy in your community.
We have also seen that those businesses who choose to install solar panels are improving the quality of the economy around them. The higher the demand is for solar, the more jobs are created. Some of these employees helping you install your panels could even become future customers!
Contact West Coast Solar, Inc.
As you can tell, a solar panel system is incredibly beneficial to any business. The numbers add up. These systems get you your money back in no time all, they help you keep a controlled budget all year long, and they help you defend your company against rising energy prices. Solar energy just makes sense! If you would like to learn more about our commercial solar panel installation services, please do not hesitate to contact us! We would be happy to let you know if going solar is the right move for your business. Reach out now to get started.