Business owners know prices are rising for everything, including electric bills. However, the cost of the sun’s rays has remained at a steady zero for the last 4.5 billion years. No price hikes are currently planned.

Consequently, solar power is the world’s most popular renewable energy source and the source behind 30% of humanity’s power production.

For many companies, the return on investment for switching to solar power is far higher than previously believed, and it’s increasing every year. Installing a solar system involves upfront costs but begins paying tangible dividends immediately. Additionally, solar power diversifies a company’s electricity generation, providing sustainability benefits that customers and partners recognize.

Benefits of Installing Solar Panels for Your Business
Let’s take a look at the many ways commercial solar pays off for businesses. It is important to recognize that the ROI for commercial solar varies depending on several factors, including power usage, the cost of electricity from the local utility and the price the local utility pays for excess power sold back to the grid. State tax incentives and utility incentives can be added to federal tax incentives to offset the upfront costs of converting the sun’s rays to electricity.

  1. Reduced energy costs—Once you install your solar panels, the electricity produced by the sun’s rays remains free for the 30-year life of the panels. Utility bills are expected to double in that time.
  2. A federal 30% tax credit—A law signed in 2022 boosted the federal tax credit to 30%, reducing the average payback time to four to eight years. Buying equipment manufactured in the U.S. and other location-based credits can slash the cost of the project by half.
  3. Various state tax exemptions—These vary by state. South Carolina, for example, offers a 25% tax credit for the cost of installing a solar power system. Maryland offers a sales tax exemption for all solar equipment.
  4. Commitment to sustainability—Efforts to improve sustainability and reduce our carbon footprint have swept the U.S. in recent years as more states join the movement. By adding solar energy to your business, you are not only reducing your own carbon footprint but also showing your commitment to sustainability, which will enhance your reputation as a sustainable and environmentally conscious business.
  5. Increasing efficiency of solar—The quality, reliability and efficiency of solar panels increase annually. Solar panels deliver twice the energy today as they did ten years ago. Efficiency continues to increase as the industry grows. Thanks to efficiency and lower costs, the ROI for solar investments is skyrocketing.
  6. Energy Independence —Most businesses that install solar panels do not completely disengage from the electrical grid, but they can reduce their reliance dramatically with a solar plus battery storage solution. As weather events that take down power lines become prevalent in many areas around the country, the value of an alternative energy source will magnify, especially for businesses in storm-prone areas, such as the southeastern United States.

Many business owners are surprised to discover the cost savings possible with solar energy. Contact us today for a free estimate of your company’s payback period. What do you have to lose but a big power bill?

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