Small and Medium Businesses receive many benefits from solar, but the key question is always: how can solar enhance 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 incentive for going solar is to lower your electricity cost! When a solar system produces energy, 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 the utility.
In addition, if your solar system produces more electricity at a given time than is needed to power your building, most utility companies will credit you for that energy through a process known as Net Metering.
Going solar also means locking in predictable electricity costs! Unlike the highly volatile and unpredictable electricity rates (due to fluctuating fuel prices, etc.), 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 - dont wait, going solar sooner is better for your bottom line!
Learn more about the ITC
Depreciation in general is “an income tax deduction that allows a taxpayer to recover the cost or other basis of certain property.” Solar Depreciation, then, is an annual allowance for the use and deterioration of your solar system over time.
As a taxpayer, you will be allowed a depreciation deduction for your solar system by meeting the following requirements: