If you own a business and the commercial property in which your business is housed, then you’re no stranger to the great responsibilities required to manage a building. Commercial property owners/occupiers absorb a sizeable risk by being their own landlord. Maintaining and improving your building has historically offered unpredictable benefits compared to leasing a commercial property and being free of responsibility.
Now you can flip the script and turn your business’ commercial property into an income-generating asset with a commercial solar panel installation. Here are 8 ways in which producing your own electricity will grow your business.
- Reduced utility bills. As soon as your solar energy array is hooked up, you begin saving on electricity which increases your net income.
- SRECs. States set benchmarks for total green energy production, and use a system called Solar Renewable Energy Credits to measure progress. All of the renewable energy you produce is tracked, and you receive certificates that can be sold to organizations that need to fulfill their own requirements generating additional revenue.
- Net metering. Solar grid owners use solar power during the day and draw power from the grid when it’s dark, but your system may still produce more electricity than you use overall. The utility company pays you the current market value for any surplus production at the end of each billing cycle. Each state has a different net metering policy.
- Federal breaks. The federal tax credit program has been extended. The tax credit equals 30% of the cost of your commercial solar panel installation, parts, labor, and other service costs. Additionally, you can claim depreciation on the Modified Accelerated Cost Recovery schedule (MACRs) compressing the depreciation into 5 years resulting in additional tax savings.
- Increased property value. Property buyers are willing to pay more for a property that is energy self-sufficient with lower operating costs. Studies show a 1:20 ratio for savings to property value increase, so for every dollar you save on your utility bill, the property value goes up $20. Along with the property value, self-sufficient energy will also help increase your home’s equity value, which can be found using an equity release calculator.
- State programs. State sponsored incentives further reduce the burden of upfront costs for your commercial solar panel installation.
- Local incentives come in other forms aside from tax breaks. Municipalities have been known to make solar energy projects more fungible by streamlining the inspection process, making property assessment exceptions, and facilitating shared solar models.
- Public Relations. Publicity is a benefit you measure qualitatively; however, it is still a significant part of growing your business. Both stakeholders and the public at large will notice your innovation, commitment to the community, and ability to invest back into your company when local media picks up the story of your company going solar.
Many new customers have taken less than three years to pay off the cost of their system. Whether you are starting out in a new venture or keeping the family business going, running your business relies on making wise decisions. Solar output is different for every property, but going solar always beats taking no action.
Every day commercial property owners are faced with choices, big and small, that contribute to the outcome of their efforts. Knowing all of the benefits of going solar, the next step is finding out just how much you will benefit from a commercial solar installation by having a professional solar evaluation.
Did we miss anything? Let us know how solar benefitted your business in the comment section below!