Understanding the advantages of solar for small businesses and commercial entities is a key strategic decision that can yield significant benefits. From financial gains to environmental returns, installing solar panels can be a game-changer.
Maximize Tax Benefits with Solar
Save the planet and your wallet with solar power. Small businesses in Coachella Valley and Central Valley can use generous tax incentives to switch to renewable energy sources.
Modified Accelerated Cost Recovery System (MARCS)
The Modified Accelerated Cost Recovery System (MARCS) is a valuable tax benefit program designed specifically for small businesses operating in Southern California. MARCS allows eligible businesses to recover the costs of certain tangible assets, such as solar panels, over a specified period of time through accelerated depreciation deductions. This means that small businesses can deduct a larger portion of the asset's cost in the earlier years of its useful life, resulting in significant tax savings.
MARCS is particularly advantageous for small businesses in Southern California, where technology and equipment upgrades are often essential to stay competitive. By utilizing MARCS, small businesses can effectively manage their cash flow, reinvest in their operations, and drive growth while benefiting from substantial tax incentives.
Investment Tax Credit (ITC)
The ITC is a federal tax credit that enables businesses to reduce their federal income tax liability by a percentage of the cost of a solar energy system installed during the tax year. It provides a direct financial benefit to entities investing in solar energy, making it an attractive option for small businesses looking to go green and save money.
In August 2022, the Inflation Reduction Act was signed into law, bringing about significant changes to the ITC. These changes have expanded the tax credit amount and extended the timeline for claiming it. For solar PV systems installed between 2022 and 2032, a 30% tax credit is available. This extension provides an excellent opportunity for small businesses in Southern California to take advantage of higher tax credits while reducing their carbon footprint. Also - you can now get an amazing 40% of your solar panel system cost back in federal tax credits! An extra 10% is available when you choose to install panels made in the United States.
The updated ITC now includes energy storage devices with a capacity rating of 3-kilowatt hours or greater. This means that businesses can also benefit from tax credits when integrating solar panels with energy storage solutions. By combining solar and storage technologies, small businesses can enhance their energy resilience, reduce demand charges, and further optimize their energy usage.
Reduce Operating Costs
Businesses that switch to solar power often see a dramatic decrease in their monthly utility bills. Savings on electricity bills can vary depending on elements like the size of your commercial space and its annual sunlight exposure.
Savings Beyond Electricity Bills
Installing solar panels can save money for small businesses in more ways than one:
Maintenance Costs: Solar panel systems require little upkeep over their lifespan, which typically lasts 25-30 years, according to the National Renewable Energy Laboratory (NREL).
Energy Price Volatility: With traditional power sources subject to price fluctuations based on market conditions and geopolitical events, having a fixed source of renewable energy protects against unexpected increases in utility costs.
Increase Property Value
Save money, save the planet, and increase your property value all at once with solar energy. A building equipped with solar panels can attract potential buyers, who are increasingly looking for energy-efficient spaces. Dwellings with solar installations generally sell faster and for higher prices than those without. and commercial properties have experienced a similar phenomenon.
The long-term savings that solar power offers is the reason behind this increased value. Businesses operating from a building equipped with solar panels will save substantially on their electricity costs over time - an attractive prospect for any company mindful of its bottom line.
Enhance Your Brand Image with Solar Power
To remain competitive in today's market, businesses must find ways to differentiate themselves. Going green with solar energy is an effective way to do just that.
The Green Advantage
Switching to solar power can have several positive effects on how the public perceives your brand:
Positive Public Perception: Consumers appreciate companies that take steps toward reducing their carbon footprint. A Nielsen survey revealed that two-thirds of consumers are willing to pay extra for items and services from firms dedicated to positive social and environmental effects.
Differentiation From Competitors: Going green helps differentiate your brand from others in your industry who may not be taking similar initiatives.
Credibility and Trustworthiness: Companies that invest in renewable energy sources like solar demonstrate long-term thinking and responsible behavioral traits appreciated by both clients and partners alike.
Solar Power: An Investment in Your Brand’s Future
Investing in solar power signals forward-thinking leadership within your organization. By embracing renewable energy solutions, you're showing foresight into future trends while simultaneously building resilience against rising electricity costs, an investment sure to pay dividends down the line.
Planet Solar offers comprehensive commercial solar solutions designed specifically for small businesses looking forward to a greener future. With expert installation services coupled with ongoing support, you'll find everything needed under one roof.
If You Lease, Solar is not the Best Option
As a small business owner, making key strategic decisions about your commercial energy supply sources can be challenging. While solar power offers many advantages, such as reducing overhead costs and presenting an environmentally responsible image, it may not always be the right choice for everyone.
If you're leasing your business premises, installing solar panels might seem like a great investment at first glance. However, there are several factors to consider that could make this option less appealing. For starters, investing in a solar panel system involves an upfront cost that most tenants would hesitate to bear on a property they don't own.
From the perspective of the building owner, too, there's little incentive to invest in commercial solar panels. Since tenants usually pay their electricity bills directly to electric companies, any savings from generating renewable energy won’t benefit them directly.
A Better Option: Vacation Rental Properties
On the other hand, if you own vacation rental properties or similar residential assets where high-energy consumption is common due to short-term renters' habits - then investing in solar installations can yield significant benefits both financially and environmentally.
Tax Benefits: Owners get substantial tax credits when they switch over to using solar power systems. The federal government currently offers incentives under its Modified Accelerated Cost Recovery System (MACRS), allowing owners quick returns on their investments by deducting depreciation expenses more rapidly than traditional methods allow.
Savings on Energy Costs: As well as being good for our planet by cutting down carbon footprints significantly compared with conventional commercial energy supply sources – going green also saves money! Producing your own clean electricity through installed solar equipment reduces dependency on utility providers leading eventually to zero electric bills.
An Environmentally Friendly Marketing Tool: Your guests will appreciate staying in accommodations powered by clean energy; thus promoting your commitment towards sustainability becomes another effective marketing tool helping attract conscientious consumers looking out for environment-friendly options.
Solar Energy: A Bright Idea for Small Businesses
If you have any questions about these benefits, call one of our solar experts. We are ready to help you analyze your home or business, consumption, and situation. We are happy to provide all the information you will need to make an informed decision on whether or not solar is right for you.
We have two locations ready to serve you. If you are in the Greater Coachella Valley area from Palm Springs to Blythe, call us at (760) 341-1413. Our second location is in the Central Valley: in the Greater Fresno Area; call us at (559) 228-9245.
Since 2007, Planet Solar has been a pioneer in the solar panel and home battery installation industry. Our team comprises seasoned solar professionals with 30+ years in the home improvement, energy conservation and technical fields. Our company prides itself on our knowledgeable, friendly, and professional solar consultants, who will help you with all your solar needs. In Planet Solar, you have found a solar installer you can trust.