Commercial solar frequently asked questions
We’re answering commercial solar frequently asked questions. Start here if you’re interested in commercial solar!
Most companies focus on the financial benefits of solar. While solar may not always be the right choice for everyone, many companies will see a significant increase in their bottom line, primarily with their utility bills. Here’s how:
- Paying a lower price for electricity by entering into a power purchase agreement (PPA)
- By generating free electricity by leasing or purchasing a solar system
- Reducing utility demand charges by also incorporating an effective energy storage solution
There are a few reasons why going solar sooner makes a lot of sense and can save you more in the long run:
- Favorable policies and tax incentives for installing commercial solar panel systems that are currently available may not always be in the future. For example, the federal Investment Tax Credit (ITC) for solar is equal to 26% of the amount invested in an eligible installation (e.g., if you invest $100,000 in solar, you could receive a $26,000 tax credit). The ITC credit is scheduled to decrease to 22% in 2023, which is another example of why going solar sooner rather than later can benefit your business more.
- A commercial solar system can also turn those utility bills into a fixed cost and protects against the rising price of electricity. When you pair solar with a commercial solar storage battery, a facilities operation manager gains 24/7 control over their building energy usage. A solar plus storage system will also keep your power on during outages or whether events such as hurricanes.
- Current solar technology is quite advanced thanks to constant innovation over the last few decades. As a result, we’ll unlikely see the same fast increased efficiency rate of photovoltaic (PV) solar systems.
Here are two primary ways solar can boost your business:
- Your bottom line increases and frees up money to invest in other areas of your business (more equipment, hiring more employees, etc), which can ultimately increase your sales and/or overall profitability.
- Depending on your location and whether you choose to buy or lease your system, you can lock in low electricity rates for 25 years or more and possibly eliminate up to 100% of your electricity bill.
- Today’s consumers embrace and favor green businesses. Showing that your business is environmentally aware can lead to overall positive brand recognition among your customers and the community. You essentially gain a competitive advantage over companies that don’t implement green strategies or sustainable practices.
Many well-known companies have already gone solar. For those who haven’t, it’s often because they simply don’t know the full range of benefits. The bottom line is the cost of solar makes it a highly viable money-saving solution.
In other cases, some businesses may think their only option is to purchase a solar system outright and don’t know there are other financing options (such as leasing or entering into a PPA). As a result, business owners may believe they need to raise capital first or secure a loan.