Commercial | Lazarus Energy

COMMERCIAL SOLAR PANEL INSTALLATION AND DESIGN

"Are you tired of watching your energy costs soar year after year? Then put the power back in your hands and generate your own power.

For most businesses, utility expenses are among the biggest costs, especially as they grow and consume more energy for various purposes such as lighting, HVAC, production, and computing.

Moreover, commercial utility rates have been increasing steadily, compounding the problem. Currently, small and medium-sized businesses (SMBs) in the US are already spending over $60 billion annually on energy, and market experts predict that the average cost of electricity per-kilowatt-hour will continue to rise in the long run.

HOW CAN SOLAR POWER HELP WITH RISING COSTS?

Renewable energy, such as solar power, can be a game-changer for businesses. By leveraging a free and unlimited energy source, you can minimize the impact of energy market fluctuations on your bottom line, resulting in substantial reductions or even the elimination of monthly electricity bills. The savings generated from this can then be reinvested into your organization, making solar energy a worthwhile investment for your business.

Nevertheless, deciding to install a solar panel system for your commercial property is a major undertaking. The upfront costs of equipment and installation can be significant, making it appear like a substantial investment. However, selecting the right system for your facility and maximizing your return on investment is crucial to recouping your initial investment as quickly as possible. Therefore, it's vital to have a partner who can guide you through the process.

WHY SHOULD BUSINESSES GO SOLAR?

Investing in solar panels is a wise move to adopt renewable energy, which can help to lower your tax obligations, decrease your operating costs, and align with your sustainability objectives and marketing efforts.

For most businesses, the decision to adopt solar energy is primarily a financial one.

Although the installation costs can be high, there are federal and local incentives available, including solar tax credits, depreciation, grants such as the Rural Energy for America Program (REAP) managed by the USDA, and rebates, that help offset the costs.

Commercial solar power investments offer a compelling internal rate of return (IRR) and a more favorable payback period compared to residential systems.

A growing number of businesses in the US are recognizing the financial and environmental benefits of solar energy, leading to a record of 19 gigawatts of solar projects installed as of June 2022, with more than half of that installed since 2020. Leading the way are companies like Walmart, Apple, and Amazon, with growth being witnessed across many corporate sectors.

REBATES, TAX CREDITS, AND OTHER INCENTIVES

Besides the initial costs of equipment and installation, there are various government and state programs that can help reduce the expenses of installing commercial solar panels. These incentives include:

Investment Tax Credit (ITC): As of 2023, the solar investment tax credit allows businesses to deduct 30% of the installation cost from their annual taxes.
Local Incentives: Many cities provide rebates to encourage businesses to adopt solar energy. For more information on your local or state incentives click here.
Utility Rebates: Utility providers also offer financial incentives to businesses that install solar panels.
Net Metering: Businesses can receive credits on their monthly utility bills by sending unused solar energy to the grid through net metering.
Sales Tax Incentives: This exemption ensures that business owners do not pay extra taxes due to the value added by their solar panels.
MACRS Depreciation: Under MACRS, assets are assigned to specific classes based on their useful lives, with different depreciation rates and recovery periods for each class. Most solar energy systems are classified as 5-year property, which means that the cost can be recovered over a 5-year period.MACRS allows businesses to recover the cost of assets at a faster rate in the early years of the recovery period, and at a slower rate in later years. This is accomplished by using a declining balance method of depreciation, which means that the depreciation rate decreases over time.MACRS can provide significant tax savings for businesses that invest in solar energy systems, as they can recover a portion of the cost of the system each year through depreciation deductions. These deductions can reduce taxable income, resulting in lower tax liability and higher cash flow for the business.

Reap

REQUEST A SITE ANALYSIS.

Send us your info.
We’ll contact you to schedule an appointment.
An energy consultant will meet with you at your home or place of business or virtually.
You will get a custom proposal with system size, design, costs, financing, and savings.