Can solar power be profitable for businesses? This seems to be a common question among many business owners. Such individuals are looking for investments that will reduce operational expenses and generate considerable profits for the company. Solar power for business seems to be a welcome investment. So, what are the advantages of solar energy systems for businesses?
1. Various Solar Tax Benefits
Increased solar tax benefits explain why solar energy is good for businesses. The current corporate tax rate is 21 percent, but companies can get up to a 30 percent federal tax credit for solar panel installation. States also offer additional credits and incentives. Consequently, businesses can get up to 50 percent of their investment back in the form of tax breaks and other incentives.
2. Reduced Electricity Costs
High electricity bills are one of the main operating expenses for businesses as most commercial buildings have a lot of equipment that requires a lot of power to run. For example, if you own a manufacturing company, your machines will need a lot of electricity. The good news is that you can use solar power to offset some of these costs.
Solar energy can reduce your business's reliance on the grid and, in turn, lower your monthly electricity bills. In fact, according to the United States Department of Energy, a company can save an average of $20,000 per year by switching to solar power.
3. Energy Security and Independence
In the coming years, energy costs are expected to rise as the demand for energy increases. This is because traditional energy sources, such as coal and natural gas are becoming increasingly scarce. As a result, businesses that rely on these energy sources will be at the mercy of rising prices. However, these price hikes will affect businesses that use solar power less.
4. Environmental Sustainability
As more and more consumers become aware of the environmental impact of businesses, they are increasingly likely to patronize environmentally friendly companies. Solar power is an excellent way for businesses to show their commitment to sustainability.
In addition, solar power can help businesses reduce their carbon footprint and dependence on fossil fuels. As a result, businesses that use solar energy will be seen as leaders in the fight against climate change.
5. Storing Extra Energy
As the current trends indicate, there will be an increasing demand for solar power in the future. As a result, businesses that have installed solar panels can sell their excess energy to the grid.
Many utilities are now offering programs that allow businesses to sell their excess solar energy back to the grid. This is an excellent way for companies to make money and offset their energy costs.
These are some reasons why solar power is a good investment for businesses. If you are also considering installing solar panels, research and take advantage of the available incentives. Also, consult with a solar installation company to get the best deal. Contact Transform Energy for a solar panel installation quote.