Commercial Solar: The Advantages- Solar Power Saves Businesses

Advantages of Commercial Solar

Commercial solar isn’t just for large corporations with excessive monthly electric bills, solar is a great fit for small to medium-sized businesses as well. Businesses of all sizes are capitalizing on the financial and environmental benefits and opportunities of installing solar. There’s a reason why you see more business owners going solar. In fact, there are several reasons. 

1. Control Future Energy Bills

Image of Kintzle Agricultural in Iowa, an example of commercial solar in action.

Energy costs seem to rise every year, or in some cases, multiple times a year. This rapid increase in rates can cause added strain on your business and future profits as your monthly electric bill continues to increase. Predicating monthly energy costs are often difficult or near impossible.

Owning a solar array for your business is like paying future energy bills now while saving money in the future. Solar allows you to lock in your energy costs to avoid future rate hikes. Solar owners gain the luxury of reducing wildly fluctuating energy bills each month and can apply the monthly savings directly to their bottom line. Since solar is designed to last for decades, these savings continue to grow eventually surpassing the original investment amount. 

2. Increase Your Property Value

If your end goal is to sell your business or commercial property, having a renewable energy system is typically more appealing to investors who are seeking property that is economically and operationally efficient. Multiple studies have proven that homes and businesses with solar achieve higher property values and sell faster than those without solar. Buyers know they can reap the benefit of a lower monthly electric bill and promote the business of being environmentally friendly with a low carbon footprint.

3. Improve Your Cash Flow & Get A Return on Your Investment

The Turnis Farm in Iowa, an example of commercial solar at work.

Installing solar panels on your business helps reduce your monthly electric bill. In turn, these savings significantly reduce total operating costs and leave extra capital after paying for themselves. Solar is not an expense for your business, it is an investment. The return you get from your investment in solar often exceeds other investments that can also save your business money.

4. Tax Credits, SRECs, Grants & Depreciation

The federal solar investment tax credit is another great financial benefit of going solar. For eligible tax-paying businesses this results in a reduction of their tax liability. The savings from this benefit can be substantial and drastically increase your rate of return on your investment (ROI).

Additionally, commercial solar arrays can be depreciated as an asset, much like other forms of equipment, for your business.

Depending on the state you reside in, additional money-saving programs are also available. Illinois Shines is the brand name for the Adjustable Block Program—a state-administered incentive program supporting the development of new solar energy generation in Illinois. The Program provides payments in exchange for 15 years of Solar Renewable Energy Credits (“SRECs”) from a utility contracted to buy the RECs from your approved solar vendor. This program can greatly offset the total cost of a renewable energy system for homeowners, commercial business, and agricultural operations throughout the state.

North Club House with Solar installed.

Focus on Energy, a Wisconsin utilities program offers rebates of up to $50,000 for businesses, up to $60,000 for agricultural producers, and up to $81,000 for Special Sector groups including nonprofits, schools, governments, and Tribal Nations.

Lastly, the U.S. Department of Agriculture Rural Energy for American Program (REAP) is designed to provide guaranteed loan financing and grant funding to agricultural producers and rural small businesses for renewable energy systems or to make energy efficiency improvements. Agricultural producers may also apply for new energy-efficient equipment and new system loans for agricultural production and processing.

To be certain you are taking advantage of all available federal, state and local incentives, it is recommended to work with a trusted and approved solar provider to be certain your solar array meets any program requirements. Additionally, consult with your tax professional on your ability to take advantage of tax credits and incentives. 

5. Improve Your Brand with A Greener Image

Today’s customers are more likely to conduct business with companies that are environmentally responsible. Going solar sends a positive message to your customer, tenants, and community that you care about sustainability and are making an effort to do your part to fight against climate pollution. Marketing your commitment to clean power helps to broaden your client base and attract new customers while retaining your existing base. Solar helps your business make a great first impression proving how environmentally friendly your business is.

6. Low-Maintenance

Cambridge Place Apartments, showing their solar array.

Investing in a solar array does not mean you also need to invest in added personnel to run or maintain the equipment. Nor do you need to invest in major facility upgrades or utilize valuable retail space for the equipment. Solar requires little to no maintenance and is typically installed on the roof. A properly designed and installed solar array can also withstand extreme weather conditions. The equipment (solar modules, inverters, racking, etc.) often comes with standard manufacturer warranties of 10-25 years, leaving you peace of mind knowing the equipment is made to last. 

In Conclusion

Investing in commercial solar is a strategic decision that has proved to have numerous benefits for business owners. Whether you own a small business or a large commercial operation, solar can provide immediate and long-term savings for decades with minimal maintenance, upgrades, or future investment requirements.

Are you ready to start enjoying the benefits of solar in your business? Complete our Free Solar Analysis form to begin your journey. 

The Prescription Shoppe in Iowa, an example of commercial solar in action.

There are several reasons for your small to medium-sized business to invest in commercial solar, including:

  • The ability to control future energy bills
  • Increasing your property value
  • Improve your cash flow & get a return on your investment
  • Tax credits, SRECs, grants & depreciation
  • Improve your brand with a greener image
  • Commercial solar is low maintenance
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