Commercial Solar FAQs
Frequently Asked Questions
Think of solar as an investment that actually provides a return. A custom designed solar energy system will help you hedge against rising energy costs, reduce building operating costs, increase property value, show your commitment to the environment and elevate community goodwill.
Utilities can be one of the largest business expenses. Energy costs have been rising at around 3% per year. Solar energy will lock in your electric rates for 20 years or more. Over the years you’ll protect your bottom line, reduce your overhead and keep more of your money available for your business or organization.
Project finance is an important component of solar, and we are happy to provide our expertise in this area alongside our technical expertise. In addition to loans and leasing, our solar experts can provide a structured financing product such as a Power Purchase Agreement (PPA).
While commercial solar does an excellent job offsetting typical use, businesses that accrue demand charges would still have to pay their utility the high-costs of having enough energy available to meet spikes in demand. Energy storage systems can solve this problem through a process called Peak Shaving. By using reserve batteries to meet high-demand, instead of relying on your utility for quick bursts in demand for electricity, a commercial solar system paired with energy storage can shave its own peaks without incurring those pesky demand charges.
The three most common commercial solar incentives are the federal solar investment tax credit (ITC), MACRS investment depreciation, and USDA REAP grants.
The ITC will offset up to 30% of a commercial solar purchase in the form of a federal tax credit. To qualify for the ITC, a business must have a tax liability upon filing.
MACRS investment depreciation is available for every commercial solar system. This is a method of depreciation in which a business’ investments are recovered for tax purposes over a specified period via annual deductions.
Available to agricultural producers, USDA REAP grants are available in select rural towns across the country with a population below a certain threshold and covers 25% of a solar investment up to $500,000 for qualifying businesses.
In addition to these, a few local utilities and municipalities offer incentive programs of their own that can be added for even more savings.