The global renewable energy capacity has increased considerably in recent years, particularly in China, the US, Brazil, India, and many other countries. The graph below shows just how much these different countries have increased in capacity in 2020 alone.
Commercial solar systems are known for their ability to reduce operational costs and become a great investment for office buildings, industrial plants, warehouses, and more. So let’s take a look at 5 great benefits that commercial solar panels can offer to large corporations, factories, and plants.
5 Ways Businesses Can Benefit from Commercial Solar
- Better ROI
There is no denying that the spend on a commercial solar installation is relatively high, but the return on investment starts to really pay off in the medium and long term. Depending on the size of the system, you can recover the cost of your commercial solar panel installation in 3-5 years, as opposed to 7-20 years for residential systems.
- Improves Expendable Income
After the one-time upfront costs, businesses often find that the savings on their utility bills give them some noticeable expendable income at the end of each month. This reduction in cost and additional income can allow the company to push forward other projects, or relieve financial stress on another portion of the business.
- Better Cost Reliability
Prices are shifting up and down across every industry in the world – and the energy sector is no different. The volatile energy prices adversely affect businesses as these changes can throw company forecasts out the window. With the help of commercial solar panels, electrical contractors in Utah can help you produce your own energy free of cost. This means that the rising energy costs won’t affect you as much as other businesses.
- Tax Credits & Accelerated Depreciation
The Solar Investment Tax Credit (ITC) gives businesses that use commercial solar panels for their electrical needs a 22% federal tax credit. To take advantage of this tax credit, you will need to have the system installed or in progress by a certain date, so check the details closely.
With this, businesses can depreciate 85% of the total cost of commercial solar panels over the coming six years, hence reducing the overall expense ratio and increasing profitability. This also improves investor confidence, as it leads to a better profit margin at the end of the year.
- Improved Public Perception
By becoming more sustainable and supporting the global change against climate change, businesses can garner a better community image and public perception. It creates a lot of PR opportunities and therefore improves how others see your business.
While some companies use this increase in public perception to sell more of their products, others can use this improved public perception to achieve a better, more in-depth market penetration.
There are many other benefits that you can enjoy with commercial solar panels. If you would like to learn more about them, please give us a call. We would love to help you understand what you can get from your investment and how our electrical services can help you achieve those benefits!
