Now is the time for commercial businesses to install a solar system to cap an ever increasing expense. Businesses can leverage the 30% tax credit and the tax savings from depreciation. If you qualify as a small rural business, you can also leverage a USDA/REAP cash grant up to 25% of the total system cost. These incentives, combined with the significant price reductions within the past few years makes a solar system an excellent investment. See Solar Energy Industries Association’s data on solar prices over the past several years.
Businesses are typically paying between $0.10 to $0.12 cents per kWh. With expected rate increases (https://www.eia.gov/todayinenergy/detail.cfm?id=17791) over the next several years, combined with affordable system prices, tax savings from depreciation, and the 30% federal tax credit, makes solar an excellent way to save money and an excellent investment.
Payback can be in 5-6 years, with an internal rate of return between 10-11%. This is like getting a 30 year CD at 5-6%. Most people agree this is a solid investment.
A study published in the Appraisal Journal documented that, “the market value of a business/home increases $20 for every $1 decrease in the annual energy costs.” A solar system for a farm can easily save $3,000 annually, resulting in an increase in property value of $60,000. For more information on how solar energy can increase the value of property by reducing a home’s operating cost, read this study at resnet.us; a residential energy service network.
Solar systems can be installed on rooftops, land, or incorporated as car port structures. If you are interested in a free site assessment don’t hesitate to contact us. Also, check out our frequently asked questions for more information.