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If you''re a business owner, going solar could be one of the best ways to lower your operating costs, save money, and support the development of renewable energy.
Today, businesses of all sizes install solar panels. Whether you''re looking to build a sustainable brand image, earn a strong financial return, or improve employee retention, solar offers many potential benefits to your business.
Most commercial and industrial solar installations are substantially larger than a typical residential solar power system. For perspective, the average size of a residential solar panel system is around 10 kilowatts (kW), while a commercial solar energy system can be up to several megawatts (MW), depending on the electricity needs of your company.
Different from utility-scale solar, commercial solar power is "distributed generation," which means we use the energy the system produces at or near the point of generation. Distributed generation projects, such as rooftop or ground-mounted residential solar, are usually connected to the local electric grid. This allows your business to take advantage of net metering, a policy that enables you to send unused electricity back to the grid in exchange for electricity bill credits (more on this below).
The upfront cost of a commercial solar panel system may seem overwhelming, but many incentives significantly lower the price. The cost of your system will come down to its size (measured in kW or MW), its system design (rooftop, solar carport canopy, or ground-mounted), and your eligibility for incentives and rebates. Here are some of the best solar incentives available today for businesses, which can reduce the cost of your system by nearly 70%:
Production Tax Credit (PTC): Instead of receiving the ITC, you can choose to get tax credits based on the amount of electricity your system produces (on a dollar per kilowatt-hour, $/kWh basis) through the PTC. If your project produces a lot of electricity and is relatively inexpensive to build, you may save more with the PTC than the ITC.
Modified Accelerated Cost Recovery System (MACRS): MACRS is a depreciation benefit that allows you to lower your taxable earnings and recover the depreciated value of your solar installation over five years. When you combine MACRS with the solar tax credit, you can earn tax incentives worth about 70% of your system''s cost.
Bonus depreciation: Bonus depreciation is similar to MACRS, but you take the full depreciation benefit in the first year of your investment instead of over five years. You have to choose between MACRS and bonus depreciation.
Net metering: Some states and utility companies offer an incentive called net metering that can significantly increase your solar savings over time. Under net metering, your utility company provides you with credits for the excess electricity your system generates and sends to the grid. When you need to pull electricity from the grid instead of your system, it counts against the credits you bank over time. At the end of your billing cycle, your utility company only bills you for your "net" electricity consumption.
If you''re still concerned about how to pay for your business''s solar energy system after incentives, don''t worry. Most businesses don''t pay upfront for solar because there are many financing options available. You can finance your system with a solar loan or choose a third-party ownership arrangement like a lease or power purchase agreement (PPA), though you won''t be eligible for the direct benefit of tax incentives if you don''t own your system.
Commercial solar provides a great return on investment. According to the U.S. Energy Information Administration (EIA), in 2021, the average commercial building spent $650.04 on electricity (likely on par with most small-to-mid-sized-businesses). Over a year, this equates to $7,800 in operating expenses. Over 20 years, your business will spend about $156,010 on energy costs.
Based on the same EIA dataset, the average commercial property consumed about 69,540 kWh of electricity in 2021. Let''s assume your business installs a solar panel system that offsets 90% of this electricity consumption. Let''s also assume that your system''s production ratio (the ratio of its estimated energy output over time, in kWh, relative to its actual size, in W) is 1.4 (it typically ranges between 1.1 and 1.7 in the U.S., depending on your location).
About Business solar system
As the photovoltaic (PV) industry continues to evolve, advancements in Business solar system have become critical to optimizing the utilization of renewable energy sources. From innovative battery technologies to intelligent energy management systems, these solutions are transforming the way we store and distribute solar-generated electricity.
When you're looking for the latest and most efficient Business solar system for your PV project, our website offers a comprehensive selection of cutting-edge products designed to meet your specific requirements. Whether you're a renewable energy developer, utility company, or commercial enterprise looking to reduce your carbon footprint, we have the solutions to help you harness the full potential of solar energy.
By interacting with our online customer service, you'll gain a deep understanding of the various Business solar system featured in our extensive catalog, such as high-efficiency storage batteries and intelligent energy management systems, and how they work together to provide a stable and reliable power supply for your PV projects.
