In a recent article we wrote about the 6 Benefits of Commercial Solar, we briefly touched on the answer to one of the main questions business owners have when considering solar power for their business: Does solar power make financial sense for my business?
Had you asked this question in 1956, when solar panels had first become available commercially at just under $3,000 a watt, the answer would have been a definite “no”. The answer was still “no” throughout the 60’s and 70’s, despite major advancements into the field of solar cells that helped reduce the costs of solar panels. Fast forward to the 80’s and 90’s and although you probably started to hear about solar power being adapted to buildings for electricity generation, the technology and costs still kept solar out of reach for most people.
Today, the answer is simple. If solar didn’t make financial sense for your business, you wouldn’t be thinking about it and we wouldn’t be writing this article. With millions of solar installations providing affordable, reliable, clean power to homes and businesses all across America, more and more business owners are considering solar power as a way to reduce monthly energy expenses.
Thanks to decades of continuous research into solar energy production, solar power not only makes financial sense but is one of the top five fastest growing industries in America.
Solar panels are also one of the most reliable sources of electricity generation, be it for your home or business.
But apart from telling you that solar power makes financial sense for your business, here are three of the main financial incentives that make a solar power system a sound investment for your business:
Three Financial Incentives of Commerical Solar
FEDERAL TAX INCENTIVES
Recognizing the value of solar power and the need for states to reduce pollution generated by energy production, the federal government put out major incentives for anyone who installs solar panels on their home or business. Today, the federal tax incentive is the most significant financial benefit for a business who is considering going solar with up to a 26% federal tax credit for the cost of your solar PV installation. Depending on what state you live in, some states also offer state based tax incentives for homes and businesses that install solar.
Accelerated depreciation is another major benefit of commercial solar. As a business you can deduct up to 85% of the value of your solar power installation as an asset from your taxes, providing an offset to the initial investment made to install solar.
PERFOMANCE BASED INCENTIVES (PBIs)
In many states and counties, solar power and even renewable energy certificates qualify for state based programs that pay you back for solar power generated by your solar power system. PBIs can help you gain returns from your solar power system and make it a great investment that produces ROI.
Additional Financial Benefits of Commercial Solar
The three above benefits consist of direct incentives and credits applied to your business when you go solar. However, commercial solar also offers additional financial benefits including increased property value and protection against consistently increasing energy prices.
If you’re a business owner and are considering going solar, Ensolar offers free consultations and designs for your business. Contact us today to schedule a consultation with one of our elite solar professionals.
*The 26% federal tax incentive is based on the incentive available at the date of this article (2020). Any reference to tax deductions and tax incentives is made based on laws available at the time of writing. Please consult a professional tax accountant as to local and current tax credits and incentives connected to going solar.