Don’t just take our word for it - have your team confirm the precise savings for your business with this guide to locating and collecting the appropriate information to take advantage of all available incentives in your area.
We’ve prepared this guide to provide your team with the easy path to ensuring your business collects all possible savings based on your investment in solar. While you’ll experience immediate month to month savings on your electricity bill, additional tax incentives create a positive ROI on solar installation very quickly. The trick is understanding all that’s available and where to find the information.
How You Can Save With Going Solar
Renewable Energy Credits
In order to receive the biggest return on your solar investment, you need to first understand how the process works. Solar panels generate energy that is sent back to your utility company’s grid. This in turn helps the utility company meet solar energy requirements set by the federal government. Since you are helping them out, the favor is returned.
These energy “credits” that are generated can be traded for cash, paid back to you from your utility company. This allows the utility company to claim renewable energy in their portfolio as well as put money directly back into your company's pocket. These are actual cash payments paid out to you for 15 years and are based on the amount of energy your solar panels create.
It is important to keep in mind that the amount of money and/or time allotted can vary state to state so be sure to check the specifics for your area.
Either way, these payments can significantly decrease the cost of your system. Most companies are not aware of renewable energy credits and this has the ability to save your company money over time.
Accelerated Depreciation for Your Solar PV Systems
New depreciation laws for renewable energy projects allow businesses to write off 100% of the cost of a solar PV system in the first year or spread out over six years. This is a huge advantage to going solar.
In the past, a system with a 25 year lifespan would depreciate slowly over 25 years. With our new solar laws, business owners are able to see a positive ROI on their investment much quicker than ever before.
Federal Investment Tax Credit
With more and more laws being passed in order to encourage solar energy usage, like the federal tax credit for solar installation, it is important to stay in the know.
Businesses are able to receive 26% back in tax credits of the gross project cost for their solar PV system. Not only is this a one-time tax break but extended tax credits are offered in the following years, after the completion of the project.
This dramatically decreases the upfront costs, allowing business owners to save money instantly.
Along with the overall project costs, laws have also been put in place to assist businesses in solar energy storage costs, as well.
Saving on Storage Costs
The Solar Investment Tax Credit, or Federal ITC, can now be applied to battery storage as well. This has been a huge advancement for businesses striving towards energy efficiency but may not have the space and resources in order to do so.
There are a few caveats to this specific tax credit. For example, the battery storage must be tied to the electric grid in order to receive the full amount offered. Again, it is important to check the laws and regulations for your specific area.
Another important thing to note is that battery storage for solar power is not as massive as most people think. Typically, these battery solutions can fit in a space no larger than a typical industrial freezer. This allows for a smaller footprint overall.
To read more about this specific tax credit, check out our more in depth article here!
Utility incentives are also offered on a state by state basis. This can help offset the initial cost of installment even more, ranging from 25-80% of the system cost rebate.
When this is the case, the utility rebate for installing solar is subtracted from your system costs before you calculate your tax credit.
Along with the various other tax credits, this rebate can save business owners a ton of money on installation costs but will require research on the specific area you are located in.
Regional-specific Savings, and Other Possible Incentives
As proven throughout this article, making the switch to solar energy does not have to be a costly decision for your company. It is important to do your research both federally and locally in order to get the greatest bang for your buck.
We encourage business owners everywhere to check out clean energy associations in their area as well as websites like EcoWatch in order to find a solar solution that fits your needs.
Solar Energy Pays for Itself in 3 to 4 Years!
The Best Part? Solar Energy Pays for Itself!
With renewable energy credits, accelerated depreciation, federal investment tax credits, tax deductions, and so much more, your solar PV system will be more cost effective than any traditional electric system.
Don’t Believe Us? Check It Out for Yourself!
With Smart Roofs Energy360 program, you are able to track your company's energy costs from your phone! This program looks at everything your company needs to lower its energy cost, become more efficient, and take the steps to become an environmental leader within your industry. To read more about the benefits of Energy 360, check out our article here.
The benefits of solar are far greater than traditional energy resources. Here at Smart Roofs, we offer cost effective and reliable solutions for solar projects to our customers. Reach out to us to find out how we can help you go solar, while saving money!