Businesses all over the world are seeing the benefits of going green. Eco-friendly solutions can save money and save the planet, a win-win for the savvy business owner.
Renewable energy costs become more competitive each year, and as a forward-thinking business owner you’re probably wondering if solar power would be a good investment for your company.
The up-front costs may be intimidating, but between the tax incentives and flexible financing options, there’s never been a more affordable time to get involved in solar power!
The Benefits of Solar Power
In recent years, there’s been an influx of solar power installations. From mega-corps to small farms, businesses are seeing the benefits of investing in renewable energy. If you’re not sure if now is the right time to take the leap, here are some good reasons to get started today.
Early Adopters Get Bigger Tax Breaks
With the Federal Investment Tax Credit (ITC), when you install a solar array, you earn a federal tax credit of 26% of the cost of the system in 2022. In 2023, the tax credit is reduced to 22%, and in 2024 it will go down to 10%, so there is a big advantage to getting started in solar now. Not expecting a big tax bill this year? This credit can be carried back one year or carried forward 20 years.
In addition, businesses can deduct 85% of the cost of the solar installation through accelerated depreciation. Both these tax breaks apply to the owners of new solar installations, not to existing or leased solar systems.
Reduce Your Organization’s Utility Costs
Market data shows that the average commercial property owner reduces their energy bill by over 75% after installing solar power. When you harness the energy of the sun, you no longer have to worry about power companies charging variable rates. If they choose to raise the summer rates during the hottest hours of the day, a solar power system will allow you to keep customers and employees air conditioned, without worrying about how it will affect your overhead costs.
Take Advantage of Net Metering Credits
Unused power produced by your solar array can be fed back into the power grid, and be credited back to you to reduce your overall utility cost. Most states have net metering policies to credit your excess power back at full or reduced retail rates. This means you benefit from solar power production even if you outsize your solar array beyond your needs, or if you size it for future needs.
Connect With Consumers and Attract Top Talent
Mindful consumption is important to younger generations, with 87% of Millennials and 94% of Gen Z believing that companies should address social and environmental issues. A commitment to renewable energy will help your business stand out to these conscientious consumers—who are increasingly the majority.
These same conscientious consumers also make up the labor pool! A business that values sustainability will be more attractive to these discerning workers.
These are some great reasons to get started in planning a solar power project today. But even with these great benefits and tax breaks, there’s still a hefty price tag to consider. If you’re concerned that solar power won’t fit in your budget, don’t worry; you can still reap the benefits of sustainability with solar power financing.
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Solar Power Financing Options
Any business, big or small, can benefit from a capital investment in renewable energy. The total investment depends on what kind of solar power system works best for your needs, which often depends on the real estate available.
Types of Solar Power Installations
- Rooftop: The most common type of installation, a rooftop array uses unused space on the roof of the building for a solar rack. This is often the most cost-effective installation, because it uses the existing structure and is unshaded by trees.
- Ground mount: If you have an open field area, a ground mount may be a great choice. These arrays are built as stand-alone racks, and unlike rooftop solar, they are not constrained by your roof dimensions or angle. They can be optimized in the direction of the sun, which increases the power output.
- Carports or other new structures: Building new structures are often the most expensive option, but they are multi-purpose. You can offer customers and employees covered parking, and this is a great opportunity to add electric car charging stations. This solar array will be highly visible, which may even draw in new customers who value sustainability. As with ground-mounted arrays, these can be optimized for maximum power output.
These improvements might seem out of reach financially, but with Team Financial Group you’ll find that affordability is not as difficult as it seems.
Start the simple process of applying for a loan to get started on your investment in energy efficiency, so you can enjoy the benefits of solar power.
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How to Get a Quote to Finance Solar Power
At Team Financial Group, we offer flexible financing options based on your business’ needs and goals, to create a customized financing solution that fits your bottom line. Begin the pre-approval process by completing our secure online form.
Our Equipment Financing Agreement will protect you against rising interest rates, and give you a predictable fixed monthly payment for easy budgeting. Start your quote today and let the financing specialists at Team Financial Group find you a solution to finance solar power!
References
Cone Communications. (2017). 2017 Cone Gen Z CSR Study: How to Speak Z. Cone Communications. Retrieved from https://www.conecomm.com/2017-cone-gen-z-csr-study-pdf
The content provided here is for informational purposes only and should not be construed as legal advice on any subject.