Solar technology continues to improve and offer greater savings to business users. In fact, a market survey by EnergySage found the average commercial property owner saved nearly 75% per month on electricity after installing solar. Planning a solar project for the coming year means you’ll save for years to come, but there are some crucial first steps to take before you begin.
Decide Firmly to Take Action
As this post is written, the Investment Tax Credit (ITC) for solar systems is in a sort of legislative limbo. The ITC (which currently credits back 30% of the cost of a solar installation) will continue, but unless Congress acts to extend it, the credit will drop. It will only be 26% in 2020, 22% in 2021, and plummet to 10% in 2022.
To maximize your return on investment, make sure you decide to have an operational solar installation sometime in 2020. If Congress fails to act, you’ll save 4% of the cost; if they do act, you’ll start saving money on electrical usage even earlier than you might have.
Choose a Partner
Though solar is a relatively simple technology compared to other forms of energy production, adding a solar installation to your business involves the creation of a custom system which will be a major material asset. On top of that, the complexities of control systems, permitting, rebates and funding sources can make a DIY approach less than prudent.
Turn to Thayer, YOUR trusted partner for all energy efficiencies, for help navigating the rules of these incentives and deciding what kind of equipment to install – we are glad to help.
Budget Wisely Based on a Solid Estimate
Once you’ve chosen a contractor for your installation, you should have reliable numbers you can plug into your budget. These will include at least the following:
- Upfront capital required and/or financing costs
- Rebates you can expect
- First year maintenance costs
- Estimated monthly electric bills before and after installation
- Tax credits available for future tax filings
This benefit for your budgeting process is just one more reason to involve a contractor early. Creating realistic numbers for a system install can be difficult without the help of a solar expert.
With a growing industry, shrinking incentives, and technology few could envision even a decade ago, now is a great time to bring solar power online at your business. Act quickly, but prudently, and you’ll see the results of your good decisions in your bottom line for years to come.