In the last few years, the US corporate world has seen an increase in solar power adoption, with companies like Walmart and Apple taking the lead in solar energy installation. Given the cost-effectiveness of solar energy, this is hardly a surprise.
Installing solar panels for the business can allow it to supplement its energy needs, reducing its dependence on non-renewable energy sources. And luckily, solar panel prices have dropped over the years, making solar panels affordable for small and medium-sized businesses. So, they don’t need to worry about costs.
Five advantages of solar power
If they wonder how the business will benefit from solar panels, discover five advantages of solar power for businesses in the guide below.
1. Reduced Energy Costs
The average period within which a business can repay its solar installation costs is three to five years
A consistent energy supply is vital for the smooth running of a business. Therefore, most businesses incur high energy costs during their day-to-day operational activities. But, with solar energy, all that can change.
According to EnergySage market data, commercial property owners can save up to 75% on energy costs by using solar power. The average period within which a business can repay its solar installation costs is three to five years. Thus, the remaining energy savings are pure profit. This should be a relief for any business.
2. More Energy Security and Independence
Installing solar energy for the business will reduce the reliance on the national grid. This will make the business less vulnerable to power cuts and outages, reducing interferences with productivity. Additionally, storing energy on the premises ensures that they have a backup power supply that they can use if the main power supply fails.
To protect the solar investment, implementing robust physical security measures is essential. This includes installing sturdy fencing, CCTV technology and access control systems to prevent theft and vandalism, ensuring the solar infrastructure remains secure and operational.
3. Various Solar Tax Benefits
Local, state, and national government levels support green energy sources. So, they offer tax benefits and financial assistance to organizations that shift to solar power. Some tax benefits that businesses gain after installing solar power include the following.
Solar Renewable Energy Credits (SREC)
This benefit will allow them to recover the solar power installation costs from the energy produced by the solar power system. One SREC to 1000 kilowatt-hours and government frameworks have made it mandatory for electric companies to compensate solar power users for every SREC they produce from solar equipment.
Accelerated Depreciation
A federal government program called the Modified Accelerated Cost Recovery System (MACRS) allows solar energy users to write off their solar panel systems in the first year. This is unlike typical equipment depreciation deductions, which federal tax authorities spread over a product’s entire life.
Accelerated depreciation will improve the cash flow, allowing them to finance the solar energy installation costs.
26% Federal Investment Tax Credit
The US federal government allows solar power users a 26% tax credit on the overall costs of solar energy installation projects from January 1, 2020, to December 31, 2022. So, if they install a solar power system for the business before the end of this year, they will earn the 26% Federal Investment Tax Credit.
4. Green Business
Using a renewable energy cost for the business shares the commitment to sustainability
Using a renewable energy cost for the business communicates the commitment to sustainability. This will attract environmentally conscious customers to the business. Becoming a green business will therefore give they a competitive advantage.
Additionally, going green using solar energy will put the business on the path to achieving LEED certification, which is one of the most ambitious sustainability goals in the corporate world.
5. Increased Silence and Space
Unlike alternative energy sources such as portable generators, solar energy systems will not take up too much space on the premises, helping them save on space.
Additionally, a solar energy system runs silently, so they won’t have to deal with noise disturbance complaints if they have set up their business in a residential area.
