Solar isn’t just good for the environment; there are some great benefits for businesses as well. Here are five that we think every business owner should know.
1. Extended tax credits and deductions
Congress extended the Investment Tax Credit (ITC), also known as the federal solar tax credit, which allows you to deduct up to 26 percent of the cost of your solar photovoltaic system installation from your federal taxes in 2021. That number drops to 22 percent in 2023 and 10 percent in 2024 for commercial projects. In addition, commercial solar projects qualify for the Modified Accelerated Cost Recovery System (MACRS), which allows businesses to deduct specific tangible property investment, like solar energy equipment, which is eligible for a cost recovery period of five years.
2. Uninterrupted service
With the recent concerns around the stability of our electrical grid and rolling blackouts occurring from grid overload, companies with a solar photovoltaic system, coupled with an onsite battery backup system, can ensure they have consistent and uninterrupted service.
3. Lowered operating costs
Most businesses’ highest energy demands come during the day when peak demand often results in higher rates. Solar allows you to tap into the free energy produced by the sun to lower or even eliminate your need during these peak times, resulting in lower operating costs for your business.
4. A good PR move
A recent Pew Research study showed that 79% of Americans say the priority for the country’s energy supply should be on developing alternative sources of energy, such as wind and solar. This growing awareness around climate change and the value of renewable energy presents an excellent public relations opportunity that may improve your business’s image in the public eye if managed and presented correctly.
5. Continuous production
Although your business may shut down on weekends or holidays, your solar panels are still at work capturing the sun and producing clean, renewable solar energy that you can use later. Because the majority of states have net metering laws in place, your business can utilize your solar production regardless of if your business is up and running or not. Net metering allows commercial customers who generate their own electricity from solar power to sell the excess electricity they produce back to the grid and utilize those credits later when their production needs are higher.
To learn more about how your business can take advantage of the sun’s ability to produce clean, readily available, renewable energy, contact an All Energy Solar representative.
To learn more about how your business can take advantage of the sun’s ability to produce clean, readily available, renewable energy, contact an All Energy Solar representative, or download our eBook, Solar for Business, to learn more about how your business can benefit from solar energy.