Nov 10, 2022
Read Time: 3 min
There are currently over 2 million solar installations in the US, and this number is expected to double by 2023. Many businesses across the country have adopted solar technology as a more sustainable energy source that yields monetary rewards.
Like with any business investment, you should understand how choosing to go solar will lead to profits. You should also find out how soon your investment will pay itself back and how taking advantage of all the current solar tax incentives will fast-track the ROI on your business’s solar energy system.
Here is how to make the most of the solar energy incentives for businesses and ROI.
The initial cost of installing solar energy for business can give you an idea of the investment that you’ll be making into solar technology. Typically, the start-up costs for installing a solar energy system for business cover the supply and installation of the main parts of the system: solar panels, racking/mounting, and an inverter.
Unfortunately, there is no outright way to predict even a broad range of initial costs because every business property is different. If you want to at least get a rough idea, consult with any of Geoscape’s experienced solar advisors to estimate the size of the solar energy system that your business and property will need.
To estimate the installation cost of a solar energy system for your property, Geoscape considers the following factors: method of funding, business energy consumption, how much sun your building is exposed to, incentives, solar tax credits, rebates, and property and/or roof availability for solar panel placement.
As a financially driven enterprise, you must evaluate how you can make money from investing in sustainable energy. Solar energy pays back quickly and consistently for businesses in two main ways.
Via Energy Bill Savings
The bigger the business, the more likely it has high electricity usage and therefore, a high utility bill. By installing solar energy for your business, you reduce your current electric costs and avoid dealing with constantly rising future utility costs.
Regardless of your business size, property size, or energy usage, there is a solar energy system that’s the right fit for you. By taking advantage of solar energy, you will cut down utility expenses, recoup the funds, and invest them back into your business venture.
Via Solar Energy Incentives for Businesses
Solar energy system users enjoy many incentives, and the quicker that you cash in on them, the faster you can expedite the ROI of your business’s solar energy system. Many of these solar energy incentives for businesses are backed by the US government’s interest in renewable energy resources. They will help your business cover a good part of the cost of solar installations.
For example, the federal investment tax credit (ITC) gives you a dollar-for-dollar reduction of the income taxes that you owe/pay the government. The ITC can equal up to 30% of the total solar energy cost installation.
Many states also offer solar incentives, and your company may be able to qualify for up to 60% cost savings from available state solar tax incentives.
If you own your business property, you may be eligible for property tax exemptions based on the value that your solar panels will add to the property.
On average, it takes about five to ten years for businesses to pay back and cover the cost of their solar energy systems, though it could be as quickly as two to three years. How you fund your solar energy system, the system's size, installation costs, net metering availability in your location, etc. determine your payback period.
Depending on the state, many businesses have found that most of the utility bill savings and the right solar incentives can fetch a higher ROI from solar energy than stock market investment returns.
Business owners have much to gain by taking advantage of solar energy incentives—it’s a smart financial decision that pays for itself. The money-saving and profit-increasing benefits make it a worthy investment for your business.
Geoscape energy specialists will help you leverage solar energy incentives for businesses to get your ROI quickly and enjoy substantial savings on electricity bills. Even better, you become energy independent and can channel saved resources into essential aspects of your business.
At Geoscape Solar, we help businesses utilize solar energy for profit. Your business will become energy independent, be able to decrease utility costs, and leverage available solar incentives for a quick ROI.
To discover how installing solar energy on your property will increase your business profitability, contact one of our energy specialists!