Commercial Solar System costs have declined dramatically in recent years. Combine that reduced cost with generous tax incentives and utility provider benefits and your solar system is cash-flow positive from day one. In addition, 100% up front financing means no out of pocket expense is required.
Very few capital expenditures provide you with as quick a payback period as solar and with our turn-key approach, your time and energy remain focused on your business while we take care of the details.
Some factors that determine cost reduction and a fast payback or “break-even point” are listed below:
Tax breaks and other incentives dramatically reduce the cost of going solar. The federal investment tax credit allows you to deduct 30% of the cost of your system from your taxes in year one or any time within a twenty year period. In addition, MACRS accelerated bonus depreciation allows for 85% project depreciation in the first year or over a six year period – this is 15% over and above traditional depreciation and only available for renewable projects.
Since Connecticut has a Federal mandate for utility providers to provide a percentage of their energy as renewable energy, your utility provider pays you additional cash incentives in the form of Zero Renewable Energy Credits (ZRECs) that give you a per kilowatt-hour cash payment for the electricity that your solar panels generate. Depending on the size of your system, these can represent a significant amount of your project cost.
The amount of electricity that your business consumes monthly is an indicator of both the size of system you need and the amount of electricity that you can offset each month with solar. The higher your electricity bills are, the shorter your estimated payback period will be, as you can reduce or eliminate this bill as soon as your panels are operational. Keep in mind that practical constraints such as your available roof space relative to your consumption can impact the amount of electricity that you can produce from your roof alone.