More and more small and medium-sized businesses these days are cutting their energy costs by going solar. And it’s not just for-profit companies. It’s also non-profit and public-sector groups like churches, community centers and local governments.
Both taxable and non-taxable properties can use solar to hedge against future utility price increases and volatility, locking in low costs for electricity with solar for years to come and making it more predictable to budget for energy costs in the future.
Then, commercial businesses and non-profits and government can enjoy benefits from solar unique to their situation.
Solar: A Solid Investment for Commercial Businesses
As solar has become more affordable, more companies have decided that solar makes good business sense. “You may have heard about major Fortune 500 companies going solar, but thought that it might not be feasible for your organization,” explains Inc. Magazine.
But solar isn’t just for Intel and Wal-Mart anymore. Businesses of all sizes are capitalizing on the financial opportunities of installing solar, proving that a solar energy system is a key strategic decision that virtually guarantees a solid financial return for your business.
As an investment, solar offers the best of both worlds. On the one hand, the return on solar competes well with alternatives like equities or real estate. On the other hand, solar is as safe and predictable as a money market account. Yet, solar yields much better returns. According to data from the EnergySage marketplace, over the last few years, the average commercial property owner lowered their electricity bill by 75% by going solar — from about $1,950 before solar to around to about $500 with solar. And since the average business pays off their solar system in 3-7 years, that means they’re enjoying free electricity for the remainder of the life of their solar system, from 25-35 years. Businesses that pay taxes can take advantage of key incentives if they buy their own solar energy system:
- Federal Investment Tax Credit (ITC): Originally slated to expire in 2016, the federal tax credit on solar has been extended indefinitely for commercial properties. Until 2019, businesses will get a 30% credit on a new solar system, which will scale down to 26% in 2020, 22% in 2021 and 10% from 2022 onwards.
- Accelerated Depreciation: Businesses can deduct 85% of the value of the solar asset from their taxes.
- Performance-based incentives: Depending on your state, PBIs including solar renewable energy certificates (SRECs) can be sold on the open market, a source of revenue that further brings down the cost of buying your own solar system.
Solar One Technology offers attractive low-interest financing for businesses to purchase an on-site solar system that can greatly reduce up-front capital costs while taking advantage of all the tax incentives and PBIs listed above. Or, businesses can also get solar for zero down through a solar equipment lease or a power purchase agreement. We’re happy to talk to you about the financing option that will make the most sense for your company.
Solar Can Also Save Money for Non-Profits and Government
Because non-taxable entities such as churches and schools can’t take advantage of solar tax incentives, in the past it’s been difficult for non-profits and government agencies to afford the upfront investment they needed to purchase a solar system.
But new financing over the last few years has made it much easier for non-taxable organizations to go solar. Through an equipment lease or power purchase agreement, non-profits and governments can also qualify for solar at zero down, removing the need for an upfront capital investment.
Why We’re Different
Solar One Technology is experienced at helping churches and other non-profit groups go solar more affordably than ever before. We can help you understand financing available to non-profits and help you select the best option for your organization.
We understand the situation of small businesses because we’re a small business too. And we’re committed to helping all kinds of commercial businesses and nonprofits do the right thing for their bottom line while enhancing their branding and giving back to the community.
Do You Qualify for Solar? How Much Can You Save?
If you’ve been in business for at least two years and you own your own building, you may be a good candidate to go solar this year. To learn whether your building qualifies for on-site solar and find out how much you can save, call us at (310) 962-0085 or use the button below to request a free quote. There’s no cost and no obligation. So get started now!