Changing climate conditions are overtaxing our energy grids. To provide immediate relief, the government is incentivizing/subsidizing 50% to over 100% of system costs for businesses to purchase and install solar.
How much do you pay for electricity? Do you want to stop?
Here are 10 reasons to switch to residential and commercial solar energy:
- We offer an electric company monthly payment redirection option. Can you redirect money from the electric company? YES. Can you stop paying for electricity and then redirect that money to pay for your solar electric system? YES. Will you find the solar system payment will be about half what the electricity payment used to be? YES.
- We offer a 60-day payment holiday included with no down payment that makes solar available for everyone. Solar electric systems are designed to replace the power company’s more expensive electricity. No money down and 60 days without a payment makes sure everyone can afford the transition.
- We offer fixed solar financing with payments that resemble half your current monthly electricity payment.
- Discounting & income tax credits reduce the net investment low enough to generate a positive cash flow above 10% starting within 30 days of energizing. Solar system pricing is low enough that investors across Wall Street have invested billions for utility and commercial solar energy projects worldwide for over 12 years. Typical returns are above 14%. With residential solar, double-digit returns are also common.
- 30% Income Tax Credits. The US government wants you to go solar so much that they are willing to let you use income tax dollars to help with your purchase. 30% of a residential solar system installation’s cost can be recovered from your income tax lability. What was the last thing the government paid 30% of the cost for you to buy?
- Our systems become a real property asset and increase your property resale value. Solar systems’ future value will increase further due to the increased cost of electrical service as well as overall property appreciation. A solar electric system becomes part of the house. Property appraisers and real estate professionals increase the valuation of homes with solar attached.
- We offer a 25-year performance warranty, a 20-year annual kilowatt production guarantee, and a 20-year leak and labor guarantee. All of these offerings are best in class.
- Our on-demand, real-time, individual solar panel performance data is available on your cell, tablet, or laptop.
- Our average home solar system avoids the equivalent of just over 500 gallons of gasoline from being burned each year to generate home electricity. A large home is a swimming pool’s worth of gasoline over 30 years. Going solar is the most environmentally impactful action most of us can take in our lifetimes.
- Economically, solar is the only addition that adds property value and reduces expenses continuously.
“About the state of the climate, I have long believed that common ground could start to be established by people agreeing that, regardless of the extent to which any individual or group believes humanity has contributed to climate change, we have a spiritual responsibility to be planet Earth’s wellbeing stewards. I have also long believed that, regardless of the extent to which humanity is or isn’t contributing to climate change, humanity has a responsibility to accurately forecast its impacts, so we can take timely, prudent, proactive steps to protect people, wildlife, and property to the greatest extent possible. I view these two perspectives as simple and practical, not ideological or political.” -Dr. David Gruder PhD.
I believe most of us agree, We must choose now to become better stewards of the planet. We must change away from fossil fuel options for energy. We must continue to reach for cleaner alternatives than current technology allows in mining and manufacturing as well as farming and construction. We must work with the new tools we have while we continue to reduce the polluting effect manufacturing those tools creates.
The government has established both tax credits and accelerated depreciation to subsidize the cost of transitioning businesses to renewable energy like solar. These benefits reimburse 50% to 100% of your solar system costs. Solar systems are designed to replace 90% to 100% of your current electricity usage. These programs are needed to facilitate immediate demand reductions now and during grid modernization. Businesses will switch to renewables first due to these subsidies. Businesses who don’t leave themselves at a financial disadvantage to their competitors with minimal electricity expenses.
The government has also established grants for businesses located in rural communities. Renewable Energy for America Program (REAP) grants of 50% (2023) are available for transitioning to solar. With this program and the income tax benefits, a rural business can ensure transitioning to solar creates a positive cash flow.
The state government has also established net metering as law. With net metering, business customers who install renewable commercial solar energy systems must be accommodated with a bidirectional electrical meter. During daylight when the system is overproducing, excess is measured and fed into the grid. At night, power needed is returned. Total usage is calculated as a monthly credit or debit and carried forward to calendar year end when credits or debits are resolved. Transitioning to solar not only minimizes electrical expenses as an operational cost; it boosts your balance sheet. The value of the system is added as a tangible asset.
Business Solar Considerations
Electric rates are going up for everyone. Electric companies are being forced to drop fossil fuel power generation and increase renewable energy power generation over a few decades. This is the costliest utility upgrade in history and will not raise rates slightly.
Income Tax Credits
The federal government’s position is heavy on the incentives for businesses who go solar and are under 1 megawatt (most businesses). They can qualify for 30% base income tax credit plus another 10% for using US parts and another 10% for using a contractor who meets minimum training and pay requirements. There is another 10% for projects in the Florida Brownfields Program. There is another 10 to 20% for projects in disadvantaged areas. In all, 70% is possible but 40% or 50% will be more common.
Businesses also have the ability to depreciate the value of the deployed solar system in one year. The depreciable value is reduced by one half the income tax credit rate. An example would be a company qualifying for a 50% income tax credit that would reduce the depreciable value by 25% (half of the 50%). 75% of system cost could be depreciated in one year. The combined tax benefit would approach or exceed 80% of system cost.
(USDA) Rural Energy for America Program (REAP) Grant
Agricultural businesses and all businesses located inside designated rural areas are eligible to apply for grant funding up to 50% of project costs. The effects of the combined programs would make transitioning to solar cost free.
The federal government has put its wallet where its mouth usually is and is funding this massive effort to reduce and then end power generation through fossil fuels. Businesses transitioning quickly will reduce grid demand during upgrading. Those businesses who adopt this first will enjoy the highest returns. Those who wait the longest will contribute the most to the power companies’ renewable transformation.
Most small businesses are structured as LLC, LLP, or C-corp with a Sub-S election. At year end, these tax benefits will pass to company ownership proportionate to ownership. A solar system on your business or home-based business will minimize your monthly electric bill immediately and pass 50% to 100% of the system’s cost as a tax credit/benefit to the owners’ personal current and future income tax liabilities.
THE ABOVE IS NOT TAX ADVICE OR GUIDANCE. APPLICABILITY AND QUALIFICATIONS SHOULD BE DISCUSSED WITH A LICENSED PROFESSIONAL PRIOR TO ACTING.