Business owners are always looking to save on costs. Utilities alone cost small businesses thousands of dollars monthly. Let’s learn more about solar panels for business and their benefits.
And why, as a commercial business owner, investing in renewable energy is a no-brainer.
Benefits Of Solar Power
Whether at home or your place of business, choosing solar power comes with great benefits. Solar panels aren’t some fringe product; they’re the future of energy use and production.
We can’t stress enough how crucial it is for commercial businesses and small companies to adopt cost-saving solar methods. As we said, utility bills add up and put a hole in your wallet. As an owner of a company, you can make solar power for you.
According to SCE, “Net Energy Metering (NEM) is available to customers who install a solar system, or other renewable generating system. If you generate more electricity than you use, the excess will flow back to the grid, and you will receive bill credits.”
But that isn’t all SCE offers regarding thinning your energy bills.
“Another service that can generate bill credits, similar to NEM, is Virtual Net Metering (VNM). VNM provides an energy credit from the power generated by an approved renewable energy system serving a multi-unit facility.”
For businesses like car dealerships, hotels, and even multi-family housing, it’s an attractive incentive. In short, SCE is offering an olive branch to help shoulder the burden.
Getting Help From Southern California Edison
Southern California Edison will cover the infrastructure costs for solar power installations. Whether it’s panels or lucrative EV chargers on your property, SCE has incentives and rebates to help you seamlessly transition to solar.
A Cleaner California
Southern California’s, namely Los Angeles’s infamous reputation for smog and air pollution, made it the butt of many a joke over the years. But that may be a thing of the past.
Luckily for Californians, the state will phase out gas-powered vehicles clogging up Los Angeles freeways. By 2035, electric vehicles (EVs) will be commonplace.
The widespread adoption of solar power, combined with EVs on the road, will help cut emissions. Not to mention saving commercial businesses a lot of money.
It’s time to explore depreciation, which plays a significant role in energy costs, installation, and the longevity of your commercial solar panels.
What Is Solar Panel Depreciation?
Depreciation is when something’s value goes down over the years.
For example, the more issues with your car, the greater the depreciation over time. It doesn’t matter if it’s a faulty catalytic converter or a broken car axle; your vehicle will lose its value over time.
The general wear and tear due to age or environmental factors can play a big part in depreciation for something like solar panels.
Solar Energy: Acting Fast
With the business energy investment federal tax credit (ITC) of 26%, early adopters of solar power receive financial benefits. These commercial businesses will get their ROI quicker by receiving solar depreciation over only a few years.
The earlier a business adopts solar energy, the better. As time goes on, namely in 2023, the tax decreases from 26% to 22%. After 2024, the baseline percentage will remain at 10%.
In short, acting quickly on solar installation will help commercial businesses recoup their investment more quickly.
Business owners can easily calculate depreciation.
Commercial solar panel installation customers can quickly clear up any financial questions by using straight line depreciation.
To calculate annual depreciation, take the cost of the asset. In this case, it’s your investment in solar panels for your business.
Then subtract the salvage value, divided by the asset’s useful life assumption.
With an asset costing $11,000, subtracting a salvage value of $1,000 over five years, annual depreciation is $2,000.
Finding accurate depreciation rates for a commercial solar system is crucial for helping you calculate the cost of renewable energy.
Installing Solar Panels In Orange County With REPOWER OC
When you contact REPOWER OC for solar power solutions, experts in the solar installation business will create a comprehensive plan for optimal savings and energy use.
Solar industry experts at REPOWER familiarize themselves with your property, the best place for solar panel placement, and generally the most efficient way to help you cut down costs.
After a detailed survey of your property, REPOWER OC gets to work designing the ins and outs of your new solar system.
Along the way, we take care of any permits your company needs to install solar equipment. After receiving the Permission to Operate from Southern California Edison, it’s time to start racking up energy bill credit.
Solar Panels for Business Owners: How It Works:
- The REPOWER OC team helps commercial business owners decide where the optimal sun exposure is for efficient panel installation
- Once the installation and activation are complete, your business will begin to generate electricity. Instead of receiving power from a utility grid, you’re generating your own. This electricity makes its way to your commercial business and helps power electronics.
- Once your business starts generating solar, any excess power goes towards a credit with utility companies. In short, your business benefits from solar energy.
Are Solar Panels Right For My Commercial Business?
In short, yes. Solar installation is a progressive move for any commercial business.
Solar panels save business owners a massive amount of money over nearly 30 years. Plus, solar panels add considerable property value
Business owners seamlessly get their ROIs within an average of four years. Plus, the initial upfront cost, supplemented by Southern California Edison, gives you all the reason to switch to solar energy.
Solar Panels For Business: Efficient Energy For A Clean Future
Businesses adopting solar power will see quick returns in a few years, plus the benefit of earning SCE credit by producing excess energy.
Have any questions regarding the benefits of solar power? For more information on solar panels, how much solar panels can help you cut down on utilities, and more, visit REPOWER OC.