Benefit Yout Business With a Solar Panel Installation

If you are a business owner, chances are you have heard about other businesses getting solar panel installations for their businesses, but installing solar panels may seem like a risky move. One thing that we often hear is that you see Fortune 500 companies installations solar-powered systems, but business owners hardly think that it is going to be feasible for their company.

Maybe you are a business owner that is considering getting a commercial solar panel installation in the near or the distant future, when your business is more equipped to make a major investment when it seems like the environmental benefits of solar energy is going to be greater than the financial benefits of getting a solar panel installation.

Solar Panels Benefit Businesses of all Sizes  

It’s time for a new way of thinking and joins the trend of smart business owners that have come to the realization that commercial solar panels are going to be a great fit for small to medium business sizes. A lot of businesses have realized that solar panels aren’t just for Walmart and Amazon anymore. The businesses that are installing solar-powered systems are beginning to realize that there are a lot of financial opportunities that they can capitalize on when they get a solar panel installation. These businesses are proving that solar-powered systems are actually a strategic decision that will virtually guarantee a solid financial return for your business.  

Financing for Solar at the Commercial Level

Like all financial decisions that businesses take we will look at the numbers. The average commercial property owner is going to around $538 in monthly utility bills before getting a solar panel installation. After the solar panel installation is complete, businesses tend to see that their electricity bill was reduced to approximately $91, which is an 83% reduction.

So, that begs the question of how much is the cost of solar? Well in the past 5 years, the cost of solar has dropped a considerable amount, which makes the prospect of companies installing a solar-powered system that much more attractive.

Your solar-powered system is measured in watts, and it is dependent on how much electricity is needed for your business, The cost of solar is typically measured in a cost per watt basis. The average cost of solar for a commercial solar-powered system was priced at $2.87/Watt before any solar incentives, and most quotes ranging from $2.50/Watt to $3.22/Watt, The table below Is going to list the different price information about different solar-powered system sixes. The prices have already incorporated the solar tax credit.

The Average Cost of Solar for a Commercial Solar-Powered System:

Decreased equipment for solar panels and the cost of solar panel installation isn’t the only reason you should consider installing a solar-powered system. There are a few other factors that can reduce your business’s out-of-pocket cost for solar-powered systems, including these solar incentives:

- The Federal Investment Tax Credit (ITC): This solar incentive is the most significant financial benefit for anyone who is considering getting a solar panel installation for their business. The owners of a new solar panel installation can get a federal tax credit for 30 percent of the cost of the solar-powered system (the federal ITC is set to decrease at the end of this year).

- Accelerated Depreciation: Businesses can deduct 85 percent of the value of the solar power assets from their taxes, providing another significant upfront cost of the solar-powered system.

- Performance-Based Solar Incentives (PBIs): PBIs, including solar renewable energy certificates, are a way for solar owners in certain markets to receive payment from their utility for the excess solar electricity that is generated by their solar panels. These solar incentives can be significant and enhance the financial returns for solar-powered system owners over the lifetime of the solar-powered system.

Looking past the short-term financial benefits, getting a solar panel installation can also help your business hedge against electricity price volatility and inflation. In most states, the price of electricity fluctuates significantly due to demand, creating a headache for business owners that are closely managing their cash flow. By installing solar panels, your business is going to be able to lock in the prices of electricity, while reducing the reliance on an unpredictable expense. By making the choice to get a solar panel installation it makes it much easier for companies to budget and plan for the future.

The ITC and depreciation benefit can reduce the solar-powered system’s price by as much as 60 percent. When you add that to the savings from a reduced utility bill and other solar incentives, like PBIs, it is hard for business owners to pass up on a deal that is that good. If paying for the solar-powered system upfront isn’t an option for your business, there are many options for financing for solar that is available to businesses that have good credit, these options include loans for solar and solar lease/power purchase agreements (PPAs).

As business owners already know, the numbers add up, making solar-powered systems a smart choice for businesses. They have a short payback period, provide steady financial returns, and help business owners hedge against the rising energy prices. At HaHaSmart you can use the price checker tool to see how much a solar-powered system will cost!