Solar Energy and Your Small Business
By: Steven Patterson
Tags: Solar, Climate Change, Solar Panel Installation, Solar Power, Solar Energy

Solar panels aren’t just for residential consumers. Businesses big and small are utilizing solar energy for financial gain. The money saved on energy costs through solar panel systems comes directly off of a business’s bottom line, allowing those funds to be reallocated to other business investments. Not only is solar energy a financial win, it’s also used as a marketing angle in a world where sustainably run companies can attract customers with their “green business practices”.

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Energy Cost Savings

EnergySage, a trusted information provider that is supported by the U.S. Department of Energy tracks data and statistics for consumers across the country regarding the changing landscape that is solar energy. They’ve implied through market research that small business owners can reap the benefits of energy savings upwards of 75%. When your utility bills can make up anywhere from 15–30% of your operating costs, that savings can really open up your budgets in more vital areas such as payroll, marketing, or product development. Some solar providers go as far as to provide state of the art software that allows businesses to track their system’s productivity — allowing them to see their company’s savings in real time.

Additional Incentives

Most people assume that the money saved with solar panel systems stops with your power bill. There are a number of additional federal and state rebates and incentives that put more cash in your pocket than your electricity cost savings.

Cash Rebates From Invested Parties

Parties invested in the spread of solar energy often offer cash rebates for the installation of systems. These cash rebates could come from your state, your utility company, or your city. Like product rebates, these cash rebates have time limits and expire if you don’t take advantage of them by the predetermined deadline. These cash rebates are available only to solar energy system owners — so keep that in mind if leasing is your payment method of choice.

Federal Tax Credits

The federal government offers a tax credit for solar energy purchasers. This solar energy tax credit is formally known as the Investment Tax Credit (ITC). It allows small business owners (and other solar energy consumers) to deduct 26% of the cost of their solar panel system, but cash rebates are subtracted from that amount.

State Tax Credits

These tax credits vary greatly by state. These tax credits also let you deduct a portion of the cost of your solar panel system, but how big that portion is depends on where you live. If your banking on a combination of these credits to make your solar panel system fit your budget, be sure to check your state’s solar tax credit protocol.

Solar Renewable Energy Certificates (SREC’s)

Solar Renewable Energy Certificates act like a complicated rewards system for owners of solar panel systems. Like cash rebates and state tax credits, SREC value varies by state. The basic idea behind SREC’s lies in selling your solar panel systems energy back to the utility provider in your state.

The next logical question is: Why would your utility company by energy from you? The simple answer is that many states require utility companies to produce a certain percentage of renewable energy. If they will not or cannot produce that renewable energy themselves, they must buy the renewable energy from someone else.

What does this mean for your business? For every 1,000 KwH that your system produces, you earn a SREC. Those certificates can then be sold to your utility company — for up to $300 in some states. This can mean extra padding on your bottom line.

Community Stewardship

Small businesses often need to become a contributing member to the communities they’re established in. Being a “good neighbor” and a good steward of your community builds trust with consumers. Protecting your community by being an environmentally conscious business gives you a marketing angle that you otherwise wouldn’t have had by creating a sustainable image. It’s all about reducing your carbon footprint.

Choosing a Provider

If your small business is considering solar panel systems, consult with a reputable provider to determine system and installation costs, as well as warranty specifics. Your provider can determine if your business is in a suitable location for solar panels to be effective, and can determine whether a roof mount or a ground mount is most suitable. To find and compare rates from solar providers in your area, contact Solar Pros today!