Benefits of Commercial Solar Powered Lighting: More than Money

If you think that commercial solar is only for large, Fortune 500 companies… think again! Large or small, solar electricity is a great way to power any business or organization and lessen its environmental impact.

The cost of solar panels is declining rapidly due to cheaper equipment and tax incentives, putting installation within reach for almost any organization. In fact, solar has now become the world’s cheapest renewable energy source. This is partially due to the fact that the silicon-based solar photovoltaic (PV) panels that convert sunlight directly into electricity continue to become more lightweight, flexible and affordable to produce.

Green energy initiatives are also helping to place solar energy within reach. The cost of solar panels in 2021 is about $20,000 after tax credits. Solar panel costs for a 10-kilowatt (kW) installation in the U.S. ranges from $17,760 to $23,828 after the federal solar tax credit. While any CFO might balk at that price tag, the push toward net-zero buildings enabled by solar yields significant tax rebates and other incentives. Across the board, solar is becoming more affordable and efficient every year, especially for smaller installations.

Here are seven benefits to you may not have considered when evaluating the pros and cons of going solar.  

Reduces operating costs: This may seem like an obvious one, but when considering your hefty energy savings, you may want to reimagine your business cost structure. Data compiled by EnergySage, an online solar marketplace, showed that energy savings could be as high as 75% by going solar. Considering that the electricity bill is one of the most expensive bills of running an organization after rent or mortgage, you may want to evaluate how this kind of savings can be utilized in other, more important business ways. For example, the average commercial property owner paid $1,950 in monthly electric bills and only around $500 after installing solar energy systems, according to the report. What could this level of saving do for you?

Green reputation: In addition to saving money, deciding to go solar will have you doing your part to decrease of world’s overall carbon footprint. Solar energy creates no greenhouse gases, and releases no chemicals into the air. It pays dividends in less concrete ways, as well. With visible panels, businesses and organizations literally appear to be environmentally conscious, which will open the door for more grants, funding or positive reputations. You may find that more employees will want to work for an organization that is environmentally friendly, especially younger populations.  

Federal Investment Tax Credit: Currently, the most popular tax credit for going green is the Federal Investment Tax Credit, though there are several other green energy solutions being proposed under the Biden administration. Business owners who have just installed their solar solutions will receive a federal tax credit for 30% of the cost of the system. This is significant because eligible taxpayers get a dollar-for-dollar reduction in the amount of income tax they would otherwise owe.

Other tax deductions and rebates: Other tax deductions can be made from the installation of a solar electricity system, including something called accelerated depreciation. These deductions make it possible to deduct up to 85% percent of the value of your solar power system from taxes each year. Different states have separate tax credit incentives based on where you do business. In addition to the tax benefits, some utility companies offer rebates to cover a portion of a system, which can help offset set up cost.

Performance-based incentives: Performance-based incentives, or PBIs, will allow you to get payment for electricity produced by your solar solutions. Compensation is calculated on the amount of energy (in kWh) a solar solution produces over a given period of time. PBIs help system owners recover the costs of installing a solar energy system. The incentives and eligibility requirements vary depending on your area. For example, in Austin, you must work with a participating contractor to qualify for the PBI.

Potential property value increase: Studies show that buildings with solar power systems have a higher property value and sell faster at a higher price. The greatest potential comes when companies own the building and can take advantage of green energy credits. Owning the solar equipment outright also helps with resale, and it won’t increase your property taxes as other additions or building improvements would. Even if you don’t own the building, there are financial incentives to adopt solar through lease agreements.

Low maintenance: Solar solutions last about 25 to 35 years and require little maintenance. All you need to consider is annual cleaning to keep the panels in a good shape. Solar energy is also a smart way to insulate yourself from future energy price spikes.

The final price of solar energy varies depending on many factors, including location, market size, competition, incentive levels, permitting process and labor costs. It’s important to get a clear picture of potential commercial energy costs from a trusted third-party that can provide expert consulting advice. At Lighting Environments, we are focused on helping to develop a clear and customized corporate lighting strategy tailored to your business. Get in touch with our trained design experts and engineers today to help you find the energy systems and lighting solutions that work best for your company.