Incentives That Increase Your Bottomline.
Adding solar to your business just makes sense with the available tax incentives and depreciation benefits. The goal of any company is to increase its profit margin, and solar helps by decreasing a high overhead cost each month. Solar also brings some ancillary benefits, such as rapid depreciation, which can be used to decrease your tax bill from previous or future years, in addition to the 30% federal Investment Tax Credit (ITC).*
*Please consult a tax advisor on your ability to claim any nonrefundable tax credits.
Incentives That Increase Your Bottomline.
Adding solar to your business just makes sense with the available tax incentives and depreciation benefits. The goal of any company is to increase its profit margin, and solar helps by decreasing a high overhead cost each month. Solar also brings some ancillary benefits, such as rapid depreciation, which can be used to decrease your tax bill from previous or future years, in addition to the 30% federal Investment Tax Credit (ITC).
It’s not just about saving money, customers prefer green businesses!
One of the most widely recognized benefits of going solar is the federal Investment Tax Credit (ITC) and 5-Year Modified Accelerated Cost Recovery System (MACRS), which have played a significant role in reducing costs for companies transitioning to solar energy. Additionally, there are numerous rebates and incentives offered at the state, municipal, and utility levels to further support the adoption of renewable energy. The Database of State Incentives for Renewables & Energy is a useful resource for businesses to learn about the specific incentives available in their location.
*Please consult a tax advisor on your ability to claim any nonrefundable tax credits.
When a business adds solar, it enters into a “Net Energy Meter” agreement with the utility company. Net metering is a program that allows customers who generate their own electricity, such as through solar panels, to receive credits for any excess power they produce and feed back into the grid. These credits can then be used to offset the customer’s future electricity bills.
The program is typically offered by utilities or state governments and is designed to incentivize the use of renewable energy sources. It also helps to reduce the strain on the electrical grid by allowing customers to contribute excess power during times of high demand.
Overall, net metering can be a beneficial option for those looking to invest in renewable energy and reduce their reliance on traditional power sources. However, the specifics of the program can vary depending on location and utility provider, so it’s important to research and understand the regulations and requirements in your area. Ask your Renova Energy Consultant to see if you qualify for NEM.
Although net metering is a familiar concept to many companies, an often overlooked yet crucial aspect is the influence of rate structures. Switching to the most advantageous utility rate structure can greatly enhance the financial outcomes of a project, making it a significant factor to consider.
*Please consult a tax advisor on your ability to claim any nonrefundable tax credits.
A study performed by Zillow indicated that homes with solar panels sell for 4.1% more than comparable homes without them. While some reports indicate a similar correlation for business property valuations, not enough studies have been conducted to verify comparable findings for commercial sites. Still, the general takeaway is apparent: Adding solar power has the potential to increase a property’s selling price. However, the extent of the increase varies depending on factors such as location, system size, and property type.
While the upfront cost of installing solar panels may be a concern for some, the potential long-term financial benefits, including energy savings and increased property value, can offset these costs. Find out how adding solar power can increase your bottom line today!
*Please consult a tax advisor on your ability to claim any nonrefundable tax credits.
