Commercial Solar Panel Costs and Savings
Commercial solar panels are becoming more attractive to businesses. Most companies see solar as a financial investment, with a payback rate in the low single digits and an average internal rate of return (IRR), exceeding 10%. Other intangible benefits can also be a benefit, including employee recruitment and retention, customer loyalty, reputation in your community, and competitive differentiation.
Commercial Solar Panel Costs
Every customer asks us the first question: "How much do commercial solar panel costs?" This depends on how big the system is and what type of equipment you use. The cost of commercial solar panels is determined by many factors.
The System's Size
The size of your system will play a major role in the cost of installation. A small boutique shop or a shipping warehouse may have different energy needs.
Type of equipment. Rooftop black panels are not all created equal.
Three types of solar panel technology are being used commercially;
monocrystalline, thin film, and polycrystalline.
Each type of solar panel has a different material composition which affects its efficiency, cost, and aesthetics. Our team will be happy to assist you in choosing the right type of solar panel for your business.
It directly depends on the size of your business. Larger facilities will require more electricity. Your location will also affect the electricity rates in your region.
All across the country, cities, states, and utility providers are eager to encourage people to go solar. This is why they offer many financial incentives to make it more affordable. Here is a quick overview of the incentives that are available to your business:
Modified Accelerated Cost Recovery System
This method of depreciation, also known as the MACRS is used to cover certain investments made by businesses over a specific period of time. Annual deductions are used. A tax-paying company that is eligible for the commercial ITC credit may also benefit from MACRS to lower the cost of a solar panel setup.
The 2021 government-issued Solar Investment Tax Credit (ITC), allows businesses 22% deduction from their annual taxes. This will fall to 10% by 2022.
State and Municipal Incentives
Many states and localities offer programs that encourage commercial solar installation. These could include flat rebates, sales taxes deductions, or tax incentives.
There are incentives offered by utilities in Texas and Colorado for companies that go solar. These include Guadalupe Valley Electric Cooperative and Garland Power and Light and the City of Sunset Valley (Texas), EnergySmart Colorado and Holy Cross Energy (Colorado); and many others.
These financial incentives are dependent on where you live, so each one will be unique. Advosy Energy can help you identify and make the most of all incentives available to your company so that you can participate in the solar revolution, and save money.