reduced operating costs – Caldus Energy

Costs of commercial solar

In comparison to residential solar systems, commercial solar projects usually cost more than most residential systems due to their size. There is no one size fits all, and while some small businesses may find great value in a $60,000 commercial system, large industrial facilities or solar farms can cost over $1 million to set up.

There are still several tax credits, rebates, and incentives available for commercial solar panel systems just as they do for residential solar panel systems.

COMMERCIAL SOLAR PANEL INCENTIVE

Federal solar tax credit

The federal solar investment tax credit (ITC) allows a deduction of 30% of the cost of a commercial solar installation.

Bonus depreciation through MACRS

Under MACRS, businesses can take advantage of bonus depreciation to claim tax deductions for the depreciation of eligible solar equipment. This incentive applies to commercial solar installations completed before January 1st 2027, allowing companies to recover their investment within five years. Since 2008, bonus depreciation has been incorporated into MACRS, enabling businesses to allocate the full depreciable value in just one year. Essentially, MACRS provides a means for businesses to expedite their return on investment by utilizing tax deductions.

Net metering

Net metering, or NEM, is a benefit available to businesses that produce their own energy through solar panels. Similar to residential customers, these commercial properties can sell excess energy back to the grid and receive credits from their utility company. These credits can then be used to offset energy costs during times when solar production may be lower, such as at night or on cloudy days. However, net metering is becoming less common nationwide, which could affect the amount of savings for those currently utilizing this perk in the future.

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With the ever increasing costs for electric power, the high price of oil and the growing concern for the environment, many businesses are finding alternative sources of energy. Solar renewable energy is a sustainable choice and one that can be used in many commercial situations.

Top of the list of reasons to go solar are the reduced operating costs. Solar power systems will reduce or even eliminate your company electric bill. Businesses of all sizes can benefit from the money savings which can have a tremendous impact on operating budgets.

Having a solar power system installed will lock in the prices for up to 20 or 30 years. Better planning of operating costs month over month.

ROI shows time and again that going Solar is a smart investment. Government incentives as well as a speedy depreciation of the costs means the utilization of solar power is a sound investment. With the new Inflation Reduction Act signed in 2022 it means it is a good financial decision for public agencies, nonprofits and most businesses.

Once installed, a solar power system will require little or no maintenance at all, most especially if there are no batteries being used. The system will provide electricity quietly and cleanly for 25 to 40 years. Many solar panels carry a 25-year warranty. With Caldus Energy the system will have a Solar Insure plan covering it for 20 years.

Utilizing electricity from solar power will result in lower consumption of fossil fuels, reducing greenhouse gas emissions and pollution. By using this alternative source, any business or company can show dedication in the battle against global warming and can reduce the country’s dependence on foreign sources.

Going green will not only reduce operating expenses, it is also a great PR and marketing tool. Having an environmentally responsible image is good for any company, as it can generate a positive response from consumers.

For more information on what commercial solar can do for your business .
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The Cost of Commercial Solar