If you are considering solar panels for your commercial property, then you likely want to know all about them and the benefits of using them over traditional electricity. There are lots of great reasons to go solar. In addition to sustainability, you will have a decreased energy bill, tax incentives, increased property value, and more.
There are a few different options for solar on commercial buildings. Solar panels on top of parking lots, carports, or attached to poles or facades do not significantly reduce the electricity bill. They do reduce energy costs some, but they also tell others that you support sustainable living and renewable energy.
If your commercial building has a large flat rooftop then a solar system will substantially reduce your energy bill while simultaneously increasing the price of your property. This is also true for large ground space that is flat. So how can you make sure that you will save costs and that the solar panels will be effective?
How Does Solar Contribute to Low Energy Costs?
It is imperative that you make the most out of your solar panels and many business owners worry that there will never be enough sunlight to provide the required energy. However, solar panels actually begin to generate electricity when there is no visible light even though the brighter, more direct, and more intense the light is, the more energy the panels will produce.
Climate, weather, and the type of solar that you choose for your property will all affect the amount of energy that they produce. However, the type of solar technology you choose can drastically affect the energy production. A track mount can help the solar panels produce more energy because they “track” the sun throughout the day. Another option is bifacial solar panels that are good for areas that have a lot of snow because they generate energy from reflected sunlight. In fact, sometimes snow can allow them to produce even more energy.
The financial return that you receive will be dependent on these issues, but the average commercial building has a 75 percent lower electricity bill after changing to solar power. In addition, they allow you to lock into a low electricity bill for 25 to 30 years.
What Tax Incentives are Available?
Commercial building owners can increase their return on investment by taking advantage of tax incentives, rebates, and credits given by the federal government. To learn more about the incentives that are offered in your state, you can check out the DSIRE Database. There are different rebates offered as well.
From the federal government in 2020 to 2022, owners of new solar systems in commercial buildings can deduct 26 percent of the cost of the system from their taxes. In 2023, the deduction is 22 percent of the cost of the system. Be sure to take advantage of any incentives that you can!
What is Net Metering?
A lot of commercial property owners are concerned about the way that they will charge their tenants for the electricity used. The way it is done is that the owner will sell the energy to their tenants by using an electric meter that records the amount of solar energy each tenant uses. Then you can bill them for the percentage or amount used.
In addition, you can also take advantage of a billing system called Net Metering, or NEM. This will allow you to store energy in the grid so that you can use it at any time. This can lower your energy bill even more.
How Can You Increase Your ROI?
Of course you want a high ROI or the investment likely is not worth the trouble. The amount of money a solar system on a commercial property will save you depends on the incentives you take advantage of, the type of solar energy that you use, and how many panels you install onto the building.
Solar panels can last a long time, even 30 years in some cases. They also do not require much expensive maintenance. Therefore, a commercial building with a substantial amount of solar panels will generate enough to see the ROI in 5 years. Some property owners see the ROI in as little as three years!
Add the fast dropping cost of solar systems into this equation and you can see that adding a new solar system to your commercial property can be a good investment with some seriously good returns.
How is Solar Power Sustainable?
Solar energy is a renewable source of energy that is of no cost to the consumer. Not only that, but you can count on having it every day forever! No pollution is created by installing a new solar system onto your building and customers may appreciate that you care about the environment.
Does Solar Increase Property Value?
A new solar system installed onto a commercial building will almost always increase the property value. In addition, properties that have solar systems installed will often sell quickly compared to properties that have traditional energy systems.
In Conclusion
As you can see, there are tons of great benefits to using solar energy for your commercial property. Not only will you save enough money to pay for the system, you will also generate more than that through tax incentives, rebates, and lower energy costs. The value of your property is also likely to increase and customers may appreciate that you are using a renewable resource.
