If you are an American business person looking to save money, then solar panels may make sense for your business in some cases. Homeowners looking to save on power bills can get a big tax break as well when adding solar to their home. But is the investment really worth the hype?
Until the end of 2019, you can save up to 30% on your federal taxes when you install solar panels. Then, the percentage starts falling but remains over 22% for the next two years. The tax credit only applies to those businesspeople who own their systems. There is no cap on the amount of money that you can spend on a solar system and take it off your taxes at the approved rate. If you do not owe enough taxes, then you can roll your savings over into the next year for the foreseeable future. Energy Sage points out that you may also be eligible for tax breaks from your state, so be sure to look for these savings. Additionally, some states and cities do not count solar panels when they are assessing your business’ property taxes so that you may get even more savings. Remember that you must be the owner of the system to qualify for these savings.
Solar Renewable Energy Certificates
The law in some states requires that utility companies produce a certain amount of electricity through solar power. To meet these requirements, energy companies will purchase your solar power so that they can count it toward their percentages. This allows you to generate additional income that can be shown on your company’s bottom line. As of 2019, the largest Solar Renewable Energy Certificate market is found in New Jersey. In some cases, businesses may be located in one state and get credit from a different state. According to SREC Trade, in Massachusetts, credit can be given to companies located in Rhode Island, Connecticut, Maine, New Hampshire, and Vermont. When you produce more than you can use, you will get a profit.
Solar panels are getting better all the time. According to EngiPartners, even if solar panels aren’t immediately profitable, the tax credits, breaks, and other advantages may actually make it more long term advantageous. The great news is that you do not need extra space for it because most systems go on your company’s roof. You may also want to consider how you can use it to market to your target audience. For example, if your niche market is people interested in sustainable products, then they may be influenced to buy from a company that gets some or all of their energy through solar power.
Tax breaks and the ability to sell your solar power to energy companies can significantly affect your bottom line. It can also be part of your sustainable business marketing plan, allowing you to attract a larger share of your niche market.
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