We all know that solar saves money by reducing your monthly utility bill. As you can see, this graph shows how Braggawatt’s different Solar Ownership & Financing Options lead to sustainable cost savings over time. But solar also provides other, hidden savings that many people don’t realize. Read on for more ways commercial solar energy can be a good investment for your business and bottom line.
The most obvious financial benefit of going solar is reducing your electricity costs. When your solar system generates electricity, you pay Braggawatt a low contracted price per kWh, which means you buy less energy from your utility company. And while you won’t eliminate your energy bill entirely, you will pay less for the energy generated by your solar panel system.
Net Metering is a significant, and often overlooked, benefit of going solar. At the most basic level, Net Metering is what happens when your solar system produces more energy than your building can use. When this happens, your utility accepts the excess power back into the grid and sells it to other local customers, while paying you for providing the energy.
Going solar also means locking in predictable electricity costs. Unlike utility electric rates that can spike unexpectedly based on volatile fuel prices and consumer demand, the cost of solar electricity is predetermined and can even be specifically contracted.
The Solar Tax Credit allows tax-paying businesses to deduct 30 percent of their installed solar system cost from their federal income taxes. That means a dollar-for-dollar federal income tax reduction the year the system is installed and beyond.
This Solar Panel Tax Credit will remain at 30 percent until 2020, when it will drop to 26 percent. It will continue to drop through 2022, when it will settle at 10 percent. Don’t wait, going solar now is better for your bottom line!
Learn more about the ITC
Depreciation is an income tax deduction that allows taxpayers to recover some of the investment cost for certain types of equipment. Solar energy systems qualify for accelerated depreciation, helping you invest in your own property rather than your local utility.
As a taxpayer, you will be allowed a depreciation deduction for your solar system by meeting the following requirements:
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