Commercial solar is a way of generating solar power used in a business and channeling the excess power to the utility grid, which reduces your power bill. Over the years, more and more businesses have realized the need to adopt solar panels to reduce reliance on grid power or replace it completely.
The cost of grid power has been rising, and with more electronic gadgets flooding the offices, businesses have embraced solar to cut energy costs. Many businesses have found a commercial solar energy company here, and in this article, we have shown how your business can switch over to commercial solar.
Benefits Of Your Business Going Solar
Before we look at how your business can function on commercial solar, the following are the benefits that you can experience when you implement solar into your business.
- Reliable Power Supply – When you look to operate without the worry of power cuts, go solar. Unlike grid power, solar energy is reliable since it can be produced at your premises and can be produced at the right capacity.
- Saves On Utility Bills – Once you have it set up and running, commercial solar can do wonders in helping you reduce or eliminate your utility bills. Your total bill will be greatly reduced since the excess power you produce will be channeled back to the grid system.
- Green Badge – As the world tries to combat climate change, going solar can be a big way of showing support to the movement that seeks a greener world. When your business adopts this power source for some or all of its power needs, it receives the green badge, which identifies it as eco-conscious. This is not only good for your corporate image, but it also creates brand awareness with customers who seek to reduce their carbon footprints as well.
How Can Your Business Go Solar?
Commercial solar can be categorized into two ways; grid-tied or hybrid. Grid-tied is where your system produces power during the day, and the excess is exported back to the grid. Your business consumes the grid power when solar is not producing.
Hybrid systems produce and store the power in batteries and export the rest into the grid. Here, your business uses your power when the solar is not working.
Now that you have seen how profitable solar can be in the long run, let us focus on running your business with commercial solar.
Understand Your Energy Needs
Going solar sounds like the best thing for your business, and it is if you look at it with great deliberations. While it is a good investment, it can fail when the power it produces isn’t as cost-efficient as the grid power. When looking to go solar, ensure you understand all your energy needs and how they compare with the cost of installing solar on your property.
If it is easier and cheaper to consume power from the grid system, investing in commercial solar may place your business in financial constraints with little return on investment. We would advise looking at solar if your energy bills are higher than the cost of installing the system in the long run.
Look For Tax Incentives
Buying solar has been made even easier with the numerous tax incentives and grants that can reduce up to 40% or even 60% of the cost of installing solar systems. As more governments encourage the adoption of this energy, businesses can get tax cuts and rebates from both the federal and local governments, depending on the state your business is located in. These incentives include:
- Federal Investment Tax Credit – All businesses that purchase solar in 2021 receive up to 26% solar tax credit of the total cost of the solar. This can mean huge savings to businesses seeking to install bigger systems.
- Solar Renewable Energy Certificate – This certificate identifies the amount of energy being produced, and the business gets paid for the value it creates from producing green energy.
- Rebates – Depending on your state, you could receive cash backs for some of the money used to purchase and install your solar system.
- Depreciation – This is a federal tax deduction technique that allows system owners to deduct up to 100% first-year depreciation value of the solar system.
With all that said, it’s time for your business to go solar and reap the benefits that come along with it. In the long run, you are guaranteed much savings, improved energy efficiency, and a cleaner environment that is good for the community as well as for your business. It is important to seek a solar company that is experienced and understands your solar needs.