Most people around town recognize the Del Sol Energy logo for the work we complete with local homeowners. However, our roots are in commercial solar installations. What does that mean? It means, when we started our business, we were focused working with business owners to help them understand the benefits of going solar while helping them navigate the intricacies of a commercial solar installation. As our business grew, we came to embrace the local community and grew a residential department where we followed the same business model of solar education for homeowners. Today, our business is balanced nicely between serving local business owners and local homeowners with their solar installation needs.
Just as in residential solar, there are many benefits for business owners to install solar panels on their business sites. There is a misnomer that solar panels for business is only for large corporations, similar to what you might find on the Fortune 500 list. However, solar is a feasible, and smart option for businesses of all sizes and rank. It is a major investment but can be part of a smart financial plan as well.
Business owners and commercial building owners all can benefit from the cost savings associated with the installation of solar panels. Additionally, for commercial solar installations qualify for the 30% federal income tax incentives. Plus, businesses can deduct 85% of the value of the solar asset from their taxes to the upfront cost of the system. Another tax benefit is The Modified Accelerated Cost Recovery System (MACRS), which dictates current tax depreciation in the United States of tangible property, allows for 100% bonus depreciation for commercial solar installations in year 1 of purchase.
A Smart Business Decision
According to EnergySage marketplace data, the average commercial property owners paid approximately $1,950 a month in electricity bills before going solar. After the installation, the electricity bill was reduced to approximately $500 a month – nearly a 75% reduction! Additionally, businesses enjoy a quicker return on their investment ranging from 3-5 years and generally pay off their solar systems in 3-7 years, allowing them to enjoy free electricity for the remaining 25-35 years left in the life of the system. By removing this high operational expense from their books business owners can invest this savings into other costs or put it in their pockets while increasing the value of their business.
A few more ideas worth celebrating are that commercial solar benefits extend beyond the financial incentives. For example, winning more customers due to a commitment to sustainability. Improved employee satisfaction, as employees are increasingly looking to work for sustainability-minded companies. Additionally, when your business contracts with a local solar company, workers in the local market complete the installation, increasing the availability of high quality, good paying jobs.
Del Sol Energy Projects
Some of our recent commercial solar installs include La Fuente Mexican restaurant located in downtown Brentwood, the Courtyard Marriott located in Vacaville, USDA Dept. of Natural Resources in Reno, Nevada and many local mobile home parks located throughout Northern, California.
Just as residential solar panels can be purchased and installed using a variety of finance options, commercial solar installations also have a variety of options for finance. Outside of paying cash, which is often an ideal solution for some businesses, some of our preferred commercial lenders include Ygrene, Sunpower and local Bay Area Banks although the list of partner finance companies extends far beyond the reach of only three providers.
It is clear, solar panel systems are excellent capital investments for small, medium and large businesses alike. They have short payback periods, provide steady financial returns, and help business owners hedge against rising energy prices. If you want to learn more about solar installation benefits for your business, contact us at Del Sol Energy.
Joshua Resneck, at Del Sol Energy in Brentwood, CA. He was born and raised in Berkeley and has experience in sales, training and strategy. He stated he picked the solar industry because, “I have always had more interests than I had time to pursue, and solar blends a lot of them together. Finance, construction, technology, people skills, rate schedules, compliance, etc.