This is the time to look into solar and determine if it would be a beneficial solution for your business. Not in 6 months or next year…today is the right time to look into it. Even if you only go as far as the initial assessment which would mean very little time invested, you need to see the current numbers and options available to you to lower your monthly electricity costs with a solar solution in place.
Waiting for the technology to improve is not a sound strategy as the cost of electricity is rising faster than the efficiency of solar panels continues to improve.
The current state of the economy and the war in Ukraine have left economists pondering when the end of high inflation rates will be. Most are predicting no less than 12-18 months before prices begin to drop once more. This is no different for the cost of electricity as the majority of the power plants are still coal and natural gas based systems. Even prior to the European turmoil, Connecticut saw a 53% electricity rate hike across most of the state and New York faced a 16% year over year increase.
Additionally, the ITC, (Investment Tax Credit or Federal Solar Tax Credit), currently sits at 30%. This has been an enormous catalyst for pushing solar projects forward and making them more affordable for businesses to adopt solar. Unfortunately, this isn’t a forever solution. The 2023 ITC will start to lower starting in the year 2032. Solar will still be a viable option due to the ability to apply the depreciation to the businesses’ taxes and also for the state/utility energy credit programs. However, businesses that wait will not be able to take advantage of the 26%.
Finally, waiting for solar to improve is not like waiting to buy a television because of a feature you are waiting for. For one thing, a television is a luxury. Electricity/energy is a cost that for many companies is third only to personnel and rent/mortgage. Also, waiting to buy the television doesn’t cost you anything. Electricity, on the other hand, is a monthly bill businesses pay until they find an alternative solution. When factoring in the cost of what solar would be for a business, it is important to factor in the amount of electricity bills paid while waiting to make a decision.