From Smart Homes to Smart Businesses: Solar’s Part
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The transition to the smart home has increased awareness and triggered a shift in businesses. Electricity has become an essential part of everyday life. Businesses without electricity to power data centers, cloud computing and everything in-between become powerless, making a reliable electricity supply critical.
Historically, environmentally friendly upgrades have proven unprofitable. However, solar power can change that for businesses in the most revolutionary way since the capping and trading of emissions.
Successful businesses have a current status that aligns with their goals. The transition to becoming an environmentally friendly organization requires a fundamental shift in the infrastructure and ecosystem of an organization.
While the consumer view of environmentally conscious businesses has a branding benefit, other advantages also come from powering businesses through solar.
Businesses that Own the Building Can Write Off Solar Expenses
Solar financing for businesses comes from building ownership, not the business’s finances, as one might assume. Therefore, unlike most residential solar installations, creditworthiness is only a determining factor for 501 (c)(3) non-profits, making solar viable for many businesses. Businesses that own the building can write-off 100 percent of solar expenses in the first year.
Commercial solar makes sense for most businesses with steady cash flow and building ownership: namely chiropractors, dentists, orthodontists, medical businesses, and law practices.
The Solar-Powered Infrastructure is Not, However, for All Businesses
- Prospects must own the building to qualify.
- Non-profits like schools and churches don’t have tax-liability, which disqualifies them from tax credits.
Technical Details of Commercial Solar
- Businesses trying to reduce their bills should consider the HiQ 5kw inverter, which is the size of a laptop and positioned beneath the solar panels.
Don’t Let the Failed Cost Efficiency of the Concentrated Solar Power Model Fool You: CSP Doesn’t Hold a Candle to PV
When referring to solar power, some think of Concentrated Solar Power (CSP). However, we’re not discussing CSP here.
CSP converts the sun’s energy into high-temperature heat using various mirror configurations. One example of CSP is the Ivanpah Solar field in the Mojave Desert, which has gone silent because the cost to generate power was 10x more than traditional, PV-modeled solar modules.
Unlike CSP, photovoltaic solar meets the production expectations of the industry and continues to decrease in price. Solar panel price decreases have made solar affordable for business owners and homeowners alike. Continued price decreases will most likely come from other areas, such as streamlined solar permitting.
EVs and Charging Ports to Improve Employee Benefits and Lifestyle
The transition to electric vehicles and charging stations has started to become the norm. However, without renewable energy generation, charging stations will not help the environment.
Businesses that invest in charging stations and commercial solar can increase their electricity savings and carbon footprint at the same time, which helps the company and its employees.
Power Supply for Businesses, Remote Work and IT
Businesses can also save more on solar because they can qualify for business incentives like the Modified Accelerated Cost Recovery System (MACRS). MACRS helps businesses recover the cost of depreciating equipment.
Solar panels have a five-year depreciation schedule with a 100 percent bonus depreciation. Solar and battery backup purchased at the same time can qualify for MACRS and the ITC, which makes purchasing renewable energy for businesses even more appealing.
Businesses run out of homes have an increased benefit from solar panels because the homeowner can receive the post MACRS price.