Solar power can save business owners significant money, virtually eliminating your monthly electric bill while offsetting the project cost with Federal and State incentives. Commercial solar installations can be found across our country on rooftops, parking structures, and ground-mounted arrays on small businesses, hospitals, schools, and even utility companies.
Let’s explore how commercial solar systems work, and how this renewable energy source can help your business.
How Solar Energy Works
By collecting and converting solar radiation (sunlight) into usable electricity, your solar system will create clean, renewable energy to power your home or business. A commercial installation is similar to a residential solar system — just on a much larger scale.
Reduce Overhead Costs
According to the U.S. Energy Information Administration, the average monthly commercial electric bill in New Jersey was $767.67 per month in 2016. In Florida, it was $590.80 during that same period. By producing your own electricity, you can eliminate or significantly reduce the amount of power that your business needs to pull from the grid, decreasing your business’s operating costs and avoiding rising utility rates.
To determine whether solar would be viable for your business, you should consider:
Do you own the facility where your business operates;
What is the cost of your monthly electric bill;
Is your energy usage subject to fluctuations during high-intensity periods;
What are your local and state solar regulations.
Take Advantage of Federal Tax Incentives
The purchase of a solar system is tax free. In addition, through 2019, the Federal Investment Tax Credit (ITC) provides business owners who invest in renewable energy with a 30% tax credit of the total system cost. This credit can be used immediately, or spread over 5 years. The ITC will decrease to 26% in 2021, 22% in 2022, and 10% in 2023. Another Federal incentive, which is not available to homeowners, allows businesses to recover capital costs over the solar energy equipment’s lifetime through the Modified Accelerated Cost Recovery System (MACRS).
You can check the Database of State Incentives for Renewables & Efficiency (DSIRE) website to see what other federal solar tax credits and other state incentives are available in your state. For instance, the State of New Jersey’s Clean Energy Program incentivizes renewable energy installation through its Solar Renewable Energy Credit Registration Program (SREC).
Little to No Maintenance Required
Solar systems are built to withstand the power of the sun, snow, rain, and other outdoor elements for years. They are incredibly durable in all kinds of weather conditions. However, if something should happen to any solar system installed by Clear Energy Partners, you are covered for 20 years or longer with equipment warranties and our no-cost comprehensive workmanship warranty.
Be sure to check with our commercial solar experts for more information about our maintenance plan to learn more.
Engage in Sustainability Initiatives
Sustainability is a serious matter in our current business environment. Many businesses address this in alignment with their corporate mission, goals, and values. Some businesses also do this to meet customer expectations, and to attract and retain prospective employees.
According to a recent McKinsey survey:
“Nearly six in ten respondents say that their organizations are more engaged with sustainability than they were two years ago—and just 9 percent that engagement has declined … Respondents also report that their organizations have increased their formal governance of sustainability: 70 percent say their companies have some form of governance in place, compared with 56 percent in 2014. What’s more, an increasing share of respondents (16 percent, up from 12 percent previously) now report that their companies have a board-level committee dedicated to sustainability issues.”
In a survey cited by an article in Fortune, more than 90% of 340 executives said that risk management played a significant role in their decision to consider sustainability initiatives. By using solar energy, business leaders can reduce their organization’s dependence on conventional energy resources (fossil fuel, coal, uranium/nuclear energy) and decrease carbon emissions.
Improve Brand Image with Sustainability
In addition to making your business more environmentally friendly by going solar, you’re also creating an opportunity for new positive marketing initiatives to help promote your brand. Integrating sustainability into your business strategy can transform your business and help to differentiate it from other companies in the eyes of consumers.
Millennials are a growing group typically known for being more environmentally-conscientious than previous generations. On average, they prefer to buy from socially responsible businesses with ethical business standards and sustainable products or manufacturing methods. Being a business that actively engages in reducing its environmental footprint will only serve to help improve your brand image in the future.
To learn more about how commercial solar panels and a new solar energy system can help your business, contact Clear Energy Partners today to schedule a free consultation.