- High return on investment
- Ensures the business remains competitive
- Reduces environmental degradation
- A sign of commitment to sustainability
- Creation of jobs.
Going solar will significantly cut your energy expenditures, allowing you to enhance your company’s budget. You can start saving on you monthly energy costs by getting a commercial solar quote today. Switching your energy source to a company-owned solar system is a great investment. Getting your commercial solar system online will not only save on your monthly energy costs but allow your business to take advantage of both state and federal tax incentives. You can never go wrong by doing the right thing for the planet! With the cost of solar panels plummeting by 70% over the past 10 years there has never been a better time to install solar panels at your business.
So, how much does it cost a business to install solar panels? Well, that all depends on how much energy the business is consuming and how much available roof space (or vacant land) the business has available to install solar panels on.
I consulted on this project for Skecher’s new Corporate Headquarters in Manhattan Beach, CA.
Let us look at an example to dig deeper into the numbers. If we look at a business with a 50,000 square foot facility this business can install roughly 1,272 solar panels (a 502 KW solar system) and save $80,248 per year on their electricity costs. The cost of this 502 KW solar system is $903,600 and includes all engineering plans, procurement of materials, and construction of the business solar system. This is an all-in turnkey price meaning the city permit, taxes, and interconnection to the electric grid are included. If you want to determine the Return on Investment (ROI) for this project we would deduct the 26% Federal Investment Tax Credit of $234,936 from the solar system’s gross cost of $903,600 bringing the net investment to $668,664. The business owned solar system would also be eligible for Federal depreciation in the amount of $235,839 (assuming a 30% Federal tax rate) in year one. In addition to the Federal deprecation the business can also depreciate the solar system for state tax purposes in the amount of $86,474 (assuming 11% California tax rate) over five years. After subtracting out the Federal and State depreciation ($322,313) the net cost in the solar system is $346,351. This solar system will save the business $80,248 per year so if we divide those savings by the net cost of $346,351, we get a payback period (or ROI) of 4.31 years! Of course, we are not factoring in any inflation rate for the utilities rate increases, which would make the ROI even shorter. I am not a CPA and do not provide tax advice so please check with your tax adviser for your business’ particular situation. These figures are from a project I consulted on for a large corporation in Southern California.
Want to see how much money you can save with a business owned solar system? Get your turnkey commercial solar quote with ROI and financing options by e-mailing us your last 12 months electric bills (all pages), a picture of the electrical switchgear inside of the business, and a picture of your roof today: firstname.lastname@example.org