3 Benefits of Solar Power for Businesses

May 29, 2024

A lot of people think about getting solar for their homes, but choosing solar power for your business can be a great option, too. Here are three of the biggest benefits to commercial solar installations.


1. You'll Save Big on Energy Costs

The average business may be able to save as much as $100,000 in electricity costs over the span of 20 years by switching to solar. Your business' location, size, and specific needs will affect that, of course, but solar power is a great way to reduce or eliminate the cost of electricity. The money your company saves can be used to bring on more employees, buy additional equipment, make repairs or improvements, or keep costs down for customers.


2. Tax Incentives Make It Affordable

Energy savings isn't the only cost benefit when your business chooses solar power. The cost of the solar system itself comes with a lot of tax incentives that can make purchasing or leasing it, and installing it, less expensive. With the right incentives, it's possible to pay only around 30% of the anticipated or quoted cost of a system. For example the ITC is a Federal Investment Tax Credit that reduces the upfront cost of the system by 30%.


So, if you pay $100,000 for the system you get $30,000 off your federal taxes. That's not the only credit, either. There's also the Production Tax Credit, bonus depreciation, net metering, and Modified Accelerated Cost Recovery System (MACRS). These all add up, but the MACRS is the largest. It's a way for your business to recover depreciated value over a five-year period, and your tax incentives will add up to approximately 70% of your total system cost.


3. Sustainability Is Popular With Customers

You may see an increase in customers when you switch to solar power for your business. A lot of people like to do business with companies that take good care of the planet, and solar energy is a part of that. By making sustainable solar power a part of your branding, you can attract more potential customers who want to support what you're doing.


We are proud to be voted the # 1 Solar Company in El Dorado County! Please contact us today to learn more about solar for your home or business!




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