If you’re in business, you know the value of a strategic financial opportunity like going solar. There’s a reason why in recent years there has been an uptick in solar incentives in DC, which is why businesses of all sizes are capitalizing on the big financial opportunities that come with it.
Solar incentives in DC have taken center stage for buyers of solar power systems who want to reduce commercial operating costs and even eliminate electricity bills. Commercial property owners looking for an ideal investment that virtually guarantees a solid financial return for their business need to jump on the solar train soon in order to take advantage of some of America’s best solar incentives.
In addition to the 30% Federal tax credit on a solar panel system installed before 2020, here are other major factors that make solar incentives in DC one of the best in the country.
Washington DC offers very strong net metering policies
Net metering is a system in which solar panels are connected to a public-utility power grid and that feeds unused energy back into the grid during times when you are producing more electricity than you are using, and pulls electricity FROM the grid when your solar array is not producing energy, such as nighttime, charging you only the “net” amount at the end of the month. This allows your business to offset the cost of power drawn from your utility and simultaneously reduce the amount of energy you purchase from them. In this way, net metering cuts monthly bills. What’s more is that if your system produces more energy than you need, the excess power is sold back to the grid and will be deducted from your monthly bill or credited.
Solar Renewable Energy Certificates
SRECs are virtual credits for generating renewable energy that are valuable to utility companies who have an obligation for a certain amount of renewable energy each year. They are sold on an open market for cash, and they’re currently a rich solar incentive in DC. Commercial property owners can sell the certificates that their panels will generate for up to $500 per megawatt-hour (MWh). So a 5 kilowatt (kW) system that generates 5 MWh per year can earn you as much as $2,500 annually.
It gets even better: DC recently increased its Renewable Portfolio Standard target to 5% of solar that must be sourced by 2032. What this means for you: utility companies will purchase SRECs in order to meet DC’s target, which increases the economic value of your solar investment.
PACE offers 100% financing for commercial and industrial property owners
District property owners can seek aid from Property Assessed Clean Energy (PACE) program to finance the upfront cost of energy upgrades or renewable energy installations. Eligibility to have a “green” project paid by PACE is inclusive to commercial property owners with multiple properties, retail stores, and office buildings less than 6 stories. After incentives and subsidies, the cost of a solar panel system is actually much cheaper than the grid.
These district-wide efficiency improvements help make a big dent in greenhouse gases and provide a viable alternative energy source to commercial property owners who seek to free themselves from high electricity bills. Curious to know how much you can save? Get your free evaluation today.