Your Business can Benefit from Commercial Solar Panels. Learn how.
December 3, 2018
For many reasons commercial solar panels save organizations money. Solar panel engineering lowers electric bills now and insures that your organization is less vulnerable to energy rate hikes in the future. In addition to gaining energy security you can expect additional benefits such as tax incentives, increased property value, and a positive public image.
The Investment Tax Credit (ITC) is a federal government tax incentive for solar panel installations. This tax incentive has been a major factor in helping annual solar installation grow for both commercial and residential systems.
According to the Solar Energy Industries Association, SEIA, “A tax credit is a dollar-for-dollar reduction in the income taxes that a person or company claiming the credit would otherwise pay the federal government.” This tax credit is worth 30% of the cost of your system and is filed as a claim on your federal tax return.
Another valuable tax incentive, provided at the state level, is Solar Renewable Energy Certificates (SRECs). SRECs are a product of renewable portfolio standards (RPS). RPS require utilities to provide a specific amount of their electricity to be generated from renewable energy. For every megawatt hour (MWh) of electricity that a solar energy system produces, a corresponding SREC is created. Solar panel owners can sell their SRECs to utilities so that the utilities can meet their renewable energy quota. The amount of money a solar panel owner can earn from SRECs varies by state and the price is determined on the solar market supply and demand factors. SRECs are great incentives for organizations to dramatically improve profits and see a return on their solar panel investment.
Increased Property Value
Your organization’s property value will improve when you install a commercial solar power system. An environmentally responsible commercial building will not only reduce operating costs but become much more attractive to potential buyers who be willing to pay top dollar for a building that is operationally cost effective.
In addition to the financial rewards, you can be proud that your organization’s facility is environmentally friendly. The decision to go solar will place your organization a step ahead of its competitors and represents your commitment to a clean environment. Having an environmentally friendly image is a plus for any organization.
The demand for solar is increasing at a rapid pace resulting in decreased costs. Federal and state incentives allow for even greater savings. Owning a commercial solar system is now a reality for many business owners and it is a guaranteed way to give yourself an environmentally responsible image and achieve energy independence. So, let’s do the math: