Posted: Tuesday, 4/25/17 @ 5pm EST
Let’s face it—it’s a great time to own a home-based business. The sector is booming, with home businesses in the U.S. generating $427-billion dollars in revenue each year. But as anyone who runs a business out of their home knows, costs add up fast, especially electricity costs, and every dollar counts. Each year, more and more home-based business owners in Massachusetts realize the business benefits of solar energy. Installing a solar energy system not only reduces energy costs, but home business owners can take advantage of other financial incentives that make a big difference on both their personal and professional bottom line.
On that note, here are our Top 4 Reasons Why Every Home-Based Business Should Consider Solar Energy:
#1: Solar Energy Reduces Energy Bills on Average of 80-100%
If you don’t think running a home business has much effect on your energy bill—think again. During the warm New England summers, keeping your air conditioner running during an eight-hour workday uses between 3,000-5,000 watts of electricity. That adds up to as much as $120 per month in added energy costs just to stay comfortable in your home office during the summer. And this is saying nothing of the increased heating and lighting costs year incurred by working at home.
After installing a solar energy system, many home-based businesses reduce their monthly energy bills by as much as 80-100%. In terms of a return-on-investment, that’s not too shabby.
But what if you are a night owl and you do a lot of your home-based business work after the sun goes down? This doesn’t actually matter. Massachusetts has a net-metering policy in place that allows households to bank excess energy produced during the day, for use during non-daylight hours. So go ahead and burn that midnight oil.
#2: Most Solar Energy Systems are Cash-Flow Positive Within a Year
The good news is—you picked the right part of the country to open a home-based business. Massachusetts has one of the strongest solar incentive programs in the country, which means you—and your home business—can quickly reap the financial benefits of solar energy. Not only will you enjoy significant tax incentives, but Massachusetts currently pays residents for the excess energy they return to the electrical grid. Between financing and incentives, most of Boston Solar’s home-based business customers are cash-flow positive within their first year.
Financial incentives of installing a solar energy system in Massachusetts:
- 30% federal tax credit – Dollar-for-dollar equal to 30% of the total cost of your system
- Up to $1,000 additional state tax credits – 15% of the net expenditure for your system, or $1,000, whichever is greater
- Quarterly SREC payments – certificates earned by producing solar energy. These translate to about $150-$270 of income for every 1,250 kWh produced.
#3: Additional Tax Benefits for Home-Based Businesses
In addition to the significant financial incentives we listed above, home-based business owners who install a solar energy system enjoy tax benefits above and beyond those seen by traditional homeowners.
If you use a portion of your home to run a business, you likely qualify for a home office deduction on your federal income taxes. This means you can depreciate a percentage of the costs of home upgrades—including that new solar energy system. This additional tax benefit is the final push that many home-based business owners need when considering the business benefits of solar energy.
#4: A Simple Installation Process
As far as business workflows go, installing a solar energy system is straightforward and timely. All told, from the time you sign a contract to the time you have a functioning system only takes about ninety days. A reputable solar energy installer will walk you through the entire process, from financing, to system design, to permits and inspections. This takes the worry out of the equation, so all you have to think about is making your home business a success.
DISCLAIMER: While this blog post discusses solar tax credits, you should always consult your tax professional about your specific situation. We do not assume responsibility for your tax situation or credits.
A home daycare provider in Massachusetts recently turned to Boston Solar to help reduce the high energy bills that come along with her home-based business. With so many children in the house each day for childcare, the increased heat and lighting costs were beginning to add up.
After her neighbor became a Boston Solar customer and installed a solar energy system of her own, the daycare provider learned about the many financial benefits of solar energy. When she discovered that as a home-based business owner she could depreciate the cost of upgrading to a solar energy system, the choice became clear.
“Installing a solar system was kind of a no-brainer once we realized that there was also a business savings aspect to it.” Boston Solar customer and home daycare provider
Director of Marketing at Boston Solar