10 Benefits of Solar Panels for Business
If you're a business owner, then you know that finding ways to save money is crucial. Solar panels can help reduce your energy costs and in turn, help your business save money. But that’s not the only reason why you should go solar.
10 Benefits of Solar Panels for Business
There are many benefits to installing solar panels for your business. Some may be obvious, but there are others you may not have thought about, so let’s dive in.
#1 Save Money on Utilities
All business owners would agree that cutting operating expenses is a good idea, so energy costs are a great place to start. Generating your own electricity with a solar energy system will reduce your electricity bills and increase your bottom line.
#2 Protection from Future Utility Rate Hikes
Businesses that are solar-equipped are protected when utility companies raise electricity prices. Installing a renewable energy system is like pre-paying for energy for the next 25 years. So when the price goes up–as it has every year–your solar power will significantly soften the blow to your electricity bills.
#3 Federal Tax Credit
The Inflation Reduction Act of 2022 brought the Federal Tax Credits for solar to a minimum of 30%. This percetage could possibly go up if you are using solar equipment manufactured in the United States.
Here’s a full overview of solar incentives, rebates and tax credits your business can benefit from when going solar.
Read more: Chinese VS American Solar
#4 Accelerated Depreciation
Many people ask, “Can I write off solar panels for my business?” The answer is a little more complicated than a simple yes or no. A solar power system is a large purchase expected to last for many years, so it is treated differently than buying toner for your printer.
While the lifespan of a solar energy system is considered to be 25 years, you don’t have to wait that long to reap the tax benefits from your purchase. For solar, you are allowed to use the Modified Accelerated Cost Recovery System (MACRS) to write off 87% of the solar panel system’s value over just 5 years.
#5 Return on Investment
Because of the tax credits and protection from future electricity cost increases, solar energy systems have an excellent return on investment (ROI). A typical commercial system could have an ROI as high as 300%. Even if you have to finance the system, it is still a great long-term investment that can pay for itself in as little as a few years and then continue to pay off in reduced energy costs for many years to come.
Read more: How to Calculate Payback Period & ROI
#6 Reduced Carbon Footprint
Besides just lowering energy costs and providing tax advantages, solar energy systems can also bring your brand’s environmental consciousness to life. Installing just 8 kW of solar panels has the same carbon offset as planting 500 trees. If you have a larger facility, your solar system could equal to planting many thousands of trees.
#7 Brand Awareness
Did you know that 55% of consumers are willing to pay more for products and services if the brand is eco-friendly? As the public concern about climate change grows, so consumer behavior evolves.
Going solar will help your business live up to its environmental sustainability values. It would be a major step towards positioning your brand as environmentally friendly. This can result in attracting new clientele as well as forming a more meaningful relationship with your existing one.
#8 Happy Employees
People not only like doing business with an environmentally aware company, but they also like to work for one. Finding good employees is difficult these days and installing solar panels can give you an edge when trying to attract good workers. Especially among Gen Z.
#9 Covered Parking
Installing solar on carports in your parking lot will significantly improve the customer experience with your business. Plus, employees will love the covered parking for their vehicles too. So it’s a win-win: your business gets more solar power, better service to your customers and more benefits to your employees.
#10 Increased Business Value
Lowering your energy costs, increasing brand awareness and making your employees happy will increase the value of your business. Whether you need to leverage that value to get more capital or you are tired of being a business owner and want to sell, that increased value makes a solar project worthwhile.
It’s Time to Power Your Business on Solar
Installing solar panels is a wise investment for any business, no matter how big or small. Not only do they reduce your costs in the long run, but they also boost brand value and help the environment.
If you’re ready to make the switch to solar power, our team of experts can help. Contact us today to learn more about the process and requirements of installing solar in your business facilities.