WHAT ARE THE KEY FACTORS IN EVALUATING SOLAR FOR MY BUSINESS?

Evaluating an investment in a Solar installation requires an understanding of your company’s cost of electricity, facility and roof condition, taxable income and cash flow along with any local incentives. SIMPLICITY Energy Solutions has the expertise to help you evaluate each of the factors and decide whether it is right for your business. 

1. Cost of Electricity Solar – Installations help customers avoid a portion of total monthly electricity costs for the life of the system. The produced electricity offsets the cost of purchasing that amount of electricity from the market and offsets a portion of the cost of delivering electricity to your facility. 

2. Facility Condition – The age and condition of the facility will have a direct impact on the potential returns on installing solar. Facilities that have a roof that is less than 10 years old, adequate roof design to bear up to an additional 8-10 pounds per square foot and electricity equipment (panels, switches, grounding, etc.) that meets current code standards can benefit from a typical solar installation. If these conditions are not met, the cost to install can increase and drive down the return.

3. Taxable Income and Cash Flow –  The U.S. government provides incentives for commercial solar installations by allowing customers to use an Investment Tax Credit equal to 30% of the system cost and accelerated depreciation. These two benefits can combine to offset the investment of a solar system by up to 60%

4. Local Incentives – Many local utilities and governments offer a variety of incentives for businesses that purchase solar installations. These incentives vary greatly and can impact returns significantly. Customers must have taxable income to qualify for each incentive. Purchasing a solar system in cash always results in the highest return. However, if a business does not have sufficient taxable income or values near term cash positive cash flow, there are equipment leases and 3rd party ownership alternatives where businesses can take advantage of government incentives and result in little or no cash outlays.