The Benefits of Having a Solar Power System for Your Business
If you’re looking into installing a solar power system at your business, you’ll want to learn a few things about the benefits. You’ll want to know about the Federal investment tax credit (ITC), energy savings, safety, longevity and more.
If you are looking for ways to improve your business’s bottom line, implementing a solar power system can be one of the best investments. You will keep more profits for your company by reducing your electricity expenses.
You may be able to get a better rate with your energy provider if you switch to solar. However, your savings from having a solar power system will vary depending on your business’s needs. The most common reason to install a solar panel is to reduce electricity costs. A solar panel can help you cut operating and maintenance costs, freeing up cash flow. The cost of solar panels may be significant, however, you will see the difference in your electricity bills once installed.
Getting a solar power system can be a significant investment, but it can pay off over time. The average commercial property owner installed a solar energy system and saved around $500 on their monthly electric bill. Another benefit is that you will reduce your carbon footprint. Consumers who see your commitment to sustainability are more likely to purchase from you.
Safety From Electrical Wires In Buildings And Roads
If you are installing solar panels in your home or business, there are several precautions you should take. For example, installing a ground-fault circuit interrupter is a good idea. Similarly, covering your outlets in plastic caps is a must. Likewise, don’t climb trees near power lines – it’s a no-no. Also, check with your local electric utility for permission before attempting any of these activities.
It’s not unusual for a tangle of wires to form on your property. To avoid such a scenario, get trained staff to prune your trees. Similarly, be on the lookout for downed power lines. A good distance of about 35 feet is a safe bet. Finally, consider installing solar power panel monitoring devices.
This will allow you to remotely track your system’s output and improve the efficacy of your installation. These systems also allow you to view real-time data on your solar system’s performance from anywhere in the world. Another good reason to invest in such a system is that it will save you money in the long run, as you’ll pay less for your electricity.
Federal Investment Tax Credit (ITC)
The federal investment tax credit is a dollar-for-dollar reduction in income taxes for individuals and businesses that purchase or lease a solar power system. In addition to the ITC, you may qualify for state rebates and incentives. To qualify for the ITC, you must own the system and use it for at least one year. You will need to submit IRS form 5695 in your next tax filing. This simple equation will determine how much of your cost is deducted from your taxes.
For example, if you have a $10,000 solar system, you can claim $2,600 in credits. You can apply the remaining credit to your next year’s taxes if you are eligible. A residential homeowner who purchases or leases a solar system can receive a solar tax credit of up to 26 percent of the total cost. However, the tax credit will be eliminated if the owner moves away. Commercial solar systems can also receive a 30 percent tax credit until 2025. However, the credit will drop to only 10 percent after that. While these incentives may vary from state to state, the ITC is the primary policy driver for solar power in the U.S.
When you decide to invest in a solar power system for your home or business, you want to ensure it will last for a long time. While the material of the panels will impact their longevity, it is also essential to consider the design and installation of the system. A good solar installer can ensure the system will be durable and operate smoothly.
The average life expectancy of a solar panel is 25-30 years. Although this isn’t a long period, it is still better than the standard warranty period of 5 years. However, as technology improves, the panels’ lifespan can be increased. This is because of their design. It’s also possible to buy solar panels with a lifespan of up to forty years.
You can choose between monocrystalline and polycrystalline solar panels. Monocrystalline panels have a lifetime of approximately fifty years, while polycrystalline ones have a lifespan of up to half a century.