Businesses rise and fall daily in America; it’s woven into the fabric of commerce here. Some businesses go through a run of unfortunate luck and have to close their doors, while others get lucky and climb the mountain to greater market share. There are a million and one decisions made every day, and the hope is that the right decisions outnumber the bad ones and the company is in a better spot than it was at the start of the day.
Commercial solar is one of the right decisions; it just makes more sense for businesses to harvest and own their energy needs instead of leasing/renting it. It’s one of the savviest decisions a company can make today, especially in an area like Texas.
Commercial solar companies scattered across Texas are designing, installing, and servicing commercial solar installations at rates never experienced before. It’s because commercial property owners and business owners understand that investing in energy independence is a surefire way to get ahead of the competition and stay ahead of the curve.
Commercial Solar – What’s Driving The Solar Enthusiasm?
As established Houston solar installers operating in both residential and commercial spaces, while it would be idealistic to believe that all who invest in solar are doing so out of greater concern for the health of the environment, we know that would also be naive. Many companies are getting into solar because it’s a long-term investment, a financial motivator, and even a PR move, and that’s ok! There’s no law saying you can’t enjoy financial savings and simultaneously appreciate the idea of contributing to a better future. We’re just happy there is a thriving market and enthusiasm behind commercial solar.
How Do the Financial Benefits Materialize?
What different avenues can businesses take with solar to save themselves the most money and have their investment payout the most in the long run? While many reasons contribute to the pool of financial benefits for commercial solar, we consider two to be the most significant; tax credits and owning energy.
Commercial Solar – Federal Tax Credits
The Federal Government (and local governments) have made it a priority to incentivize installing solar arrays via tax credits/write-offs. Some popular examples of this are:
The Investment Tax Credit (ITC) – the ITC is likely the most popular federal incentive for businesses regarding commercial solar installations. The ITC permits businesses to deduct a percentage (currently 30%) of total system installation costs against the federal taxes for the calendar year in which they were installed; this can be a very large margin for companies with larger installations and even larger federal tax dues.
Modified Accelerated Cost Recovery System (MACRS) – farms and commercial properties can claim a solar array installation as depreciable property over a five-year period on their federal taxes; this means that the percentage of the cost of a commercial solar installation can be counted against what businesses owe in Federal taxes over five years.
Just between these two incentivized programs, commercial installations can be covered from 50-60% in the form of federal tax credits, pending on timing and program parameters.
Owning Energy, Not Leasing It
Consumers have rights and choices; we’re just not always privy to them because companies making tons of money would rather we not be aware of these choices. Your cable company/internet provider would rather you didn’t own your own modem and router; they’d prefer you lease theirs. Your cellular network doesn’t want you to provide/buy your own phone; they’d prefer you lease one of theirs. The same can be said for the energy suppliers and distributors; they prefer you pay for their energy, regardless of rates or reliability, instead of creating your own. Commercial businesses now understand that there’s an alternative available to them.
When a commercial business creates some or all of its needed energy through a solar array install, it owns that energy from beginning to end. Endless energy supplied by the sun is converted into usable electricity for operations, cutting out all the middle man who wants a cut at every corner, adding to the bottom line.
For businesses that plan on operating in the long term, it’s a no-brainer that the upfront costs of a solar installation will pale compared to the long-term energy bills from a supplier. Heck, businesses can even sell their excess energy back to the grid that’s been sticking them for years prior; as Will Hunting would say, “I got her number, how’d you like them apples!”
If your business is interested in working with some of Houston’s finest commercial solar installers, please contact us today to start the conversation.
