Are you thinking about your next tax write off? Your next investment? Or maybe how you can free up some operating cash flow for your business? Solar power for commercial is the next best thing in the marketplace today with juicy ROI’s.
In this article our goal is to boost you with information that guides you in the right direction on how you can benefit from commercial solar panels. Along with all of the perks that come along with it with the following four simple options.
- Lower operating costs with solar panels for commercial through a PPA
PPA’s – A solar PPA makes it easy for many businesses to go solar. Today this method also known as a solar “purchase power agreement” and it eliminates the upfront or out of pocket expense of going solar and allows the business owner to reap the benefits.
This works by lowering the operating costs at which your business purchases its electricity. Moreover, the PPA agreement locks in a low long-term fixed rate. Which in turn, frees up cash flow in turn for paying less on your electricity.
Installing solar panels for commercial will guarantee the projected savings and make your business become more sustainable in the marketplace.
2. Now is the best time to take advantage of the ITC
ITC – Also known as the “federal investment tax credit” that allows business owners who purchase solar panels for commercial purposes to get a 26% reduction from the total cost of their solar project.
Once the solar panels for commercial get purchased, this tax credit makes you eligible to receive the tax credit for as long as it is in effect. So lets say you have a lower tax liability than what your ITC amount is.
Then, you are unable to use the entire credit in the first year. However, it will roll over year after year until the full 26% of the credit is used up. Cool right?
3. Commercial financing to purchase solar with no out of pocket expense
C-pace – C-pace is a financing option program for businesses looking to upgrade their energy efficiency by going solar. By helping finance the upfront cost of the solar panels for commercial project.
The way it works is the business owner looking to install the commercial solar panels will fill out a c-pace application.
Furthermore, the c-pace app requires two years of the most recent financial statements, and two years of financial tax history. This information will make it easier for the loan officer to push through the application and make sure you are a good fit for the program. In order to qualify the financial statements must be up to date and in good standing or positive cash flow.
Once approved the c-pace financing program will loan up to 30% of the total property value.
4. Buying solar in cash has a fast return on investment
Cash – A cash purchase can be a great way to maximize the financial savings of solar panels for commercial.
Although, this option requires the initial out of pocket expense, the return on the investment is much greater than a financial purchase through a loan process especially if the solar commercial installation is grid tied and the utility offers a strong net metering buyback program.
Most utility grids will allow a grid tied systems to offset 100 percent of their energy consumption to solar power.
So long as there is enough solar real estate on site. What this means for you is that once you pay off your solar panels for commercial you are 100% energy independent and you don’t have to worry about the electricity expense anymore.
So there you have it, a tip from the pros at South Texas Solar Systems. We have worked with commercial solar panel installations with huge companies like H-E-B and Tesla.
If you would like a free quote for your business to go solar, do not hesitate to [Contact Us].