We’ve prepared this guide to provide your team with an easy path to ensuring your business collects all possible savings based on your investment in solar. While you’ll experience immediate month-to-month savings on your electricity bill, additional tax incentives create a positive ROI on solar installation very quickly. Oftentimes in just 2 or 3 years. The trick is understanding all that’s available and where to find the information.
How You Can Save With Going Solar
Renewable Energy Credits (RECs)
How do RECs work and why should you care? These energy “credits” that are generated every time 1 million watts (1 MW) of power is produced. This can be traded for cash, paid back to you from your utility company. This allows the utility company to claim renewable energy in their portfolio as well as they put money directly back into your company's pocket. These are actual cash payments paid out to you for 15 to 20 years and are based on the amount of energy your solar panels create. These payments can significantly decrease the cost of your system. Sometimes by up to 35%. Most companies and commercial property owners are not aware of renewable energy credits and this has the ability to save your company money over time.
Accelerated Depreciation for Your Solar PV Systems
New depreciation laws for renewable energy projects allow businesses to write off a majority of the cost of a solar PV system in the first year then spread the rest out over 6 years. This is a huge advantage to going solar and can help recoup 20% to 35% of the cost of the system, depending on effective tax rates.
In the past, a system with a 30+ year lifespan would be depreciated slowly over 25 years. With the new solar tax incentives, business owners are able to see a positive ROI on their investment much quicker than ever before.
Federal Investment Tax Credit
Businesses are able to receive 30% to 50% back in tax credits of the gross project cost for their solar PV system. Not only is this a huge one-time tax break, but extended tax credits are offered in the following years, after the completion of the project.
This dramatically decreases the upfront costs, allowing business owners to save money instantly. Along with the overall project costs, laws have also been put in place to assist businesses in solar energy storage costs, as well.
Saving on Storage Costs
The Investment Tax Credit, or Federal ITC, can now be applied to battery storage as well. This has been a huge advancement for businesses striving towards energy efficiency but may not have the space and resources in order to do so.
Another important thing to note is that battery storage for solar power is not as massive as most people think. Typically, these battery solutions can fit in a space no larger than a typical industrial freezer. This allows for a smaller footprint overall.
Regional-Specific Savings, and Other Possible Solar Incentives
As proven throughout this article, making the switch to solar energy does not have to be a costly decision for your company. It is important to do your research both federally and locally in order to get the greatest bang for your buck.
Solar Energy Pays for Itself in 2 to 4 Years!
The Best Part? Solar Energy Pays for Itself!
With renewable energy credits, accelerated depreciation, federal investment tax credits, tax deductions, and so much more, your solar PV system will be more cost-effective than any traditional electric system.
Don’t Believe Us? Check It Out for Yourself!
With Smart Roofs Energy360 program, you are able to track your company's energy costs from your phone! This program looks at everything your company needs to lower its energy cost, become more efficient, and take the steps to become an environmental leader within your industry. Read more about the benefits of Energy 360 here.