Investment in solar technologies makes good business sense. What many savvy business people already knew has become even more apparent of late, as some of the biggest companies in the U.S. are investing in solar energy systems. As much as alternative energy investments benefit large companies, smaller local businesses can enjoy similar overhead reductions and tax advantages. Read on to see if investing in a solar energy system could benefit your business.
Who’s Investing in Solar Energy?
A recent report from the Solar Energy Industries Association (SEIA) revealed several noteworthy trends. Not only are more major U.S. companies adopting solar technologies, they are sticking with it. Fossil fuel generation costs continue to increase sharply but the cost of solar has steadily declined. Costco, IKEA, Apple, Volkswagen (at their enormous manufacturing plant in Chattanooga, Tennessee) and Kohl’s have all adopted solar technologies. Apple currently has two solar plants in North Carolina, which power their large data center. Even real estate investment trusts (REITs) are getting in on the action, using vacant land and commercial rooftops to generate solar energy. They pass these benefits on to their tenants as utility bill reductions, and increase profits by selling excess power back to utility companies.
Why Alternative Energy Investment Makes Good Business Sense
Commercial electric utility customers don’t enjoy many of the benefits and protections provided to residential customers. The commercial sector pays significantly more per kilowatt hour for electricity than individual users do, along with potentially steep demand charges that are based on regional consumption. The variable cost of commercial electricity makes financial planning difficult and strains cash flow whenever demand spikes. The tax advantages can be significant as well. U.S. tax code allows for a tax deduction for the recovery of tangible property costs over the useful life of the property and qualifying solar systems are eligible under these laws at an expedited (five year) rate. This not only reduces your company’s tax liability but helps you recover the cost of your investment very quickly.
How Solar Can Help Your Business Prosper
Many of America’s most successful businesses have invested in solar energy because it makes good financial sense. But this technology does not just benefit big business. Even small local or regional companies can derive significant benefit from a smaller scale investment. The SEIA report states that the price of commercial photovoltaic (PV) systems have dropped 45 percent in the past three years. Over that same period of time, the price of commercial electricity rose by more than 20 percent and that market continues to be highly inflationary. Installing a PV system can dramatically reduce your company’s operating cost and reduce its dependence on commercial power utilities. You owe it to yourself and your stakeholders to investigate the potential cost savings of solar energy.
Intermountain Wind & Solar knows that investing in alternative energy technology makes good financial sense for both commercial and residential customers. Contact them today and learn how your company can benefit from an investment in solar energy.
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