Solar panels can be a great option for plenty of different businesses. You can save money and help save the environment at the same time. However, you can’t just assume that solar panels are the right choice for your business. Instead, you’ll have to consider your return on investment (ROI).
Investing in solar panels is an expense like any other for your business. Before you make that choice, you need to know that it will pay off in the long run. The return on your investment depends on a number of different factors that will determine whether solar is right for your business.
Your Local Power Rates
When you first reach out to a company for a quote on solar panel installations, they’re going to ask about your local power rates. This rate review is one of the most impactful components of determining your ROI. Basically, this is the value that’s going to determine how much money you’re saving for every kilowatt of power you generate.
If you live in any area with very low power rates, you won’t be saving much money. Some areas allow grid-tie solar systems to sell power back into the grid, but that power won’t be worth much if rates are low. On the other hand, anywhere with high rates will mean that solar panels are well worth the investment and will provide a large ROI.
Available Roof Space
Investing in solar panels isn’t like investing in the stock market. You’ll be receiving an actual system that really needs to be installed on your building. However, the amount of solar electricity you’ll be able to generate depends on what kind of roof you’re working with. If you don’t have any available roof space, you don’t have room for solar panels.
Determining your solar rooftop potential also takes into account your roof’s orientation. Does your building have a flat roof? Then you’ll need angled mounting hardware. If your roof is angled, does one side face directly south? If not, you could be missing out on a lot of solar power potential.
Tax Incentives
Federal and state governments provide a wide range of tax incentives and other subsidies to promote solar power. Your business could qualify for these incentives, reducing your overall cost and improving your ROI.
In Massachusetts, there are several programs for both residential and commercial solar power. Some involve tax credits, while others affect depreciation rates, so getting advice from a tax accountant is your best bet for maximizing these benefits.
Financing Your Investment
For major installations like solar power systems, many businesses will seek out financing. There can be a significant difference in the ROI depending on whether solar panels are bought outright or financed. To find out for sure, businesses will need to carefully evaluate their expected electricity savings along with any loan interest rates.
There are many sources of financing available specifically for this kind of green initiative. Your business might not have to rely on conventional business loans but could access funding with more relaxed interest rates. These programs could let your business start enjoying energy savings sooner and realize an even greater ROI.
Commercial Solar Power System Installations
A reliable quote is an important part of finding out if a commercial solar power system will have a good ROI for your business. The team at BD Electrical Services can provide you with a quote on solar panel installation here in Massachusetts’ South Shore, Cape Cod, and the Islands. Contact us today to find out more.
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