There are many immediate benefits from going solar, but the key question is: can solar improve my bottom line?
This graph shows how various Solar Ownership & Financing Options lead to sustainable cost savings over time.
In fact, solar energy not only offers a simple way to lower your electricity cost immediately, but a reliable strategy to control future costs!
The most obvious financial benefit from going solar is reducing your electricity costs. When a solar system generates electricity, you buy less energy from your utility company. And, while your utility bill may not be eliminated entirely, you pay less for the energy generated by your solar system than you pay for energy generated by your utility.
Additionally, if your solar system produces more electricity than your building requires, most utilities will pay you for this excess energy through a process known as Net Metering.
Going solar also means locking in predictable electricity costs. Unlike the unpredictable electricity rates from your utility (driven by volatile fuel prices and variable demand), the cost of electricity produced by your solar system is predetermined, and can even be specifically contracted.
The Solar Investment 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.
The ITC 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 systems qualify for accelerated depreciation, helping you invest in your 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: