How Commercial Solar Energy Systems Can Benefit Your Business

 Adding solar power to your business not only lowers electricity bills but also makes you less dependent on the grid, making your company more resilient in the face of supply disruptions and rising energy rates. Plus, it shows your customers and employees that you’re an environmentally-friendly business.

Solar panels are activated by sunlight to generate electricity. That electricity is then converted into usable alternating current, and distributed throughout your property.

Reduced Utility Bills

Commercial solar systems cut energy costs by replacing a business’s reliance on electricity from the grid. These cost savings help businesses stay competitive and thrive in their industries.

In addition to the reduced utility bill, a solar energy system can lower a building’s energy costs through its use of battery storage and other technologies. These technologies store surplus electricity for use at night or during peak-demand periods, further lowering a business’s energy bill.

Unlike traditional sources of energy, which deplete our natural resources and contribute to climate change, renewable solar power is 100 percent clean and sustainable. As a result, businesses that switch to solar are able to reduce their environmental impact and demonstrate leadership in their communities and industries.

Increased Energy Independence

Adding commercial solar to a business or manufacturing site helps businesses reduce their dependence on grid-supplied electricity. When coupled with an energy storage system, a commercial solar installation can also help shield businesses from supply disruptions and price fluctuations. In turn, this allows for greater stability in energy costs and supports long-term financial planning and budgeting.

The business sector is uniquely suited for the benefits of commercial solar. Manufacturers and other large industrial facilities use substantial amounts of electricity, making them ideal candidates for a commercial solar power solution. Embracing renewable energy with a solar installation can help these organizations save millions while protecting them from rising energy prices.

More consumers and employees expect their employers to support sustainability initiatives, and a commitment to sustainable practices can lead to increased brand loyalty. Investing in a commercial solar energy system is an excellent way to demonstrate that your business prioritizes environmental stewardship. It can also allow you to access valuable tax credits and incentives.

Sustainability

A commercial solar system helps businesses meet environmental sustainability goals, contributing to global climate action and responsible consumption. Aligning with these United Nations Sustainable Development Goals (SDG) positions a business as an environmentally conscious front-runner and enhances its reputation among consumers.

Whether for commercial real estate, agriculture, manufacturing or office buildings, solar energy can be a powerful investment. With the right site assessments and design, companies can reduce their energy bills by converting sunlight into clean electricity to power operations.

Businesses benefit from solar incentives at the state and federal levels, including the federal Investment Tax Credit and accelerated depreciation, lowering upfront costs and increasing return on investment. Net metering programs offset the cost of a commercial solar system by allowing companies to receive credits on their utility bill for excess electricity generated by their panels that is sent back to the grid.

Energy storage technology also maximizes solar savings by storing surplus energy for use on cloudy days or during peak demand periods.

Tax Incentives

Commercial solar energy systems are eligible for a variety of tax incentives to offset system installation costs and help businesses realize significant savings. The federal Investment Tax Credit (ITC) reduces a business’s federal income tax liability by 30% of the system cost. This incentive was recently extended through the Inflation Reduction Act to 2034. Energy storage systems also qualify for the ITC, albeit at a lower rate of 20%.

In addition to the ITC, business owners may be eligible for accelerated depreciation under the Modified Accelerated Cost-Recovery System and bonus depreciation. Talk to a tax professional to learn more about these and other financial incentives that are available for your business.

In addition to the ITC, commercial solar projects can receive a domestic content bonus, an additional 10% credit that rewards solar installations with a certain percentage of steel and iron manufactured in the United States. This is an important incentive that encourages the use of U.S. products and supports the manufacturing industry.

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