Solar is rapidly becoming one of the most prevalent new sources of power plants in the United States and businesses have been a huge contributor to this rapid expansion.
Why have over 32,000 facilities in the United States moved toward solar?
Here are three great reasons:
1. Huge potential saving after installation costs;
2. Hedge against utility rate spikes and inflation;
3. It’s clean. Renewable. Sustainable. And solar eliminates increased health-related pollutants in the atmosphere.
If you are interested in pursuing solar as a viable alternative to energy costs, you should get a cost benefit analysis, an initial roof/pre-solar assessment to see whether a solar installation is right for your business.
Once that’s done, you’re going to crunch some numbers in order to decide on the best way to finance your solar energy project. There are a number of ways to purchase solar energy installation. These include:
– Direct Purchase – good if you have sizeable revenue and need a big tax break. This maximizes total savings with a 7-10% Internal Rate of Return (IRR)
– Operating Lease – this is where the bank owns the solar and monetizes incentives (good if you aren’t needing big tax incentives;
– Capital Lease – Also good if you have a “tax credit appetite” as it is referred to, typically 10 year, possibly a 20-year option;
– Conventional Loan – you’ll get the tax break, plus an increase in your IRR and increase in your Return on Investment (ROI)
At first, this may seem to be overwhelming, but you aren’t going to be doing this all alone. The first step is to see how solar may fit into your overall business goals. Then, it’s important to choose a partner who can help you make the right decisions, for both your business, and ultimately, our planet.
The Bottom Line? Tax Credits
In the U.S. tax code, the solar investment tax credit (ITC) is a 30 percent tax credit for solar systems on residential (under Section 25D) and commercial (under Section 48) properties. If you meet the requirements, that can be pretty generous, and it’s a Federal law, currently remaining in effect through December 31, 2016.
However, if you’re located in North Carolina, here’s reason number four to act fast:
4. Additional statewide solar tax incentives in North Carolina end in December 2015. Coupled with the Federal credits, you want to start looking at your options now.
Remember, you don’t need to be in North Carolina to benefit from the Energy Services Division of North American Roofing. As a national company, we can help wherever your commercial property or business is located. Be sure and check your own state for additional incentives.
Solar is a viable and sustainable initiative that can make financial sense. Take a couple minutes to watch our informative YouTube video presentation for commercial solar initiatives and see how solar can make a lot of sense today and for the future. Commercial Solar Roofing Infographic, presented by North American Roofing.
For more about Energy Services Group of North American Roofing contact Solar Consultant Jason Campbell, Jason.Campbell@naroofing.com.* * * * *
ABOUT NORTH AMERICAN ROOFING – The 4th largest commercial and industrial roofing company in the United States (Roofing Contractor, 2014) North American Roofing (NARSI) has been a pioneer in the commercial single-ply roofing industry since 1979, dedicating 100% of their expertise as specialists in commercial and industrial low-slope roof systems. North American Roofing’s Energy Services Group offers complete turnkey solar energy solutions providing engineering, procurement and installation of today’s most advanced high caliber solar arrays. Nationally known and a recognized leader in service, installation, quality, safety and innovation, North American Roofing, headquartered in Asheville, NC since 1993 became employee-owned in 2012. In its 35 years, North American Roofing has installed and serviced more than one billion square feet of roofing on over 20,000 facilities across the United States.
Solar is rapidly becoming one of the most prevalent new sources of power plants in the US.
Last year Solar represented 29% of the total installed new energy generation.
Businesses have been a huge contributor to this rapid expansion.
In fact, Businesses have installed over 3 Gigawatts of solar at over 32,800 facilities.
That’s enough energy to power more than 600,000 homes for an entire year.
Why are these businesses, many brands of whom we all use every day, moving toward solar at such a rapid rate? There are three major reasons.
The first reason is the huge potential savings from reduced energy cost. Solar has no fuel cost and therefore the costs is all in the purchase and installation.
Once installed, the solar pays itself off and continues to make you money for up to 20 years.
Imagine your utility telling you if you paid upfront for 5-7 years of energy they will give you the next 15-20 years free. It won’t happen, but this is exactly what you are doing when you purchase solar.
If you divide the energy produced by the total cost of installation you will see that your cost per unit of energy will be less than you currently pay.
The second reason solar makes sense is that you reduce your risk of utility price volatility.
Utility and fuel prices rise year after year. Typically these price increases are predictable; however, sometimes they are not. How do you forecast your future cost with unknown utility prices?
Once installed, solar is stable and predictable. You can avoid much of this volatility thereby increasing your competitive edge in your industry.
The third reason solar makes sense for your business is because solar is a clean, renewable, and sustainable energy source.
A typical commercial solar install will reduce 200 tons of carbon from entering the atmosphere every year for 20-30 years.
That’s equivalent to taking over 40 passenger vehicles off the road – for a year.
Solar also reduces considerable health related pollutants.