You’ve probably seen solar panels going up on homes all over Massachusetts from the South Shore to the North Shore and out through Central Mass, but did you know that businesses here in the Bay State are making the switch to solar as well? Solar power is a smart investment for businesses — especially now with so many local and federal incentives available.
Are you a Massachusetts business owner? Discover how investing in clean solar energy can offer long-term economic benefits and high ROI for your business.
Save 30% with the Federal Solar Tax Credit
Did you know that business owners who install a commercial solar PV system can deduct 30% of the system cost from what they owe on their federal taxes? For example, if the cost of your commercial solar PV system was $145,000 then your expected Federal Investment Tax Credit would be $43,500.
However, this incentive won’t last long — 2019 is the final year for the full 30% incentive. Next year, the percentage will fall to 26%, and in 2021, it will fall to 22%. Then from 2022 onwards, the federal tax incentive for commercial systems will be 10%.
If you’re a business owner who is considering solar, 2019 is the year to invest for maximum financial benefits.
Accelerate the Rate of Return on Your Solar Investment
Your solar payback period can also be accelerated through the Modified Accelerated Cost Recovery System (MARCS) depreciation. Businesses investing in qualified solar equipment may be eligible for the MARCS depreciation credit at a cost recovery period of five years. If you’re claiming the Federal Investment Tax Credit, you must reduce your project’s depreciable basis by one-half the value of the federal solar tax credit.
Taking the same example above with a commercial solar system cost of $145,000, you could claim your Federal Investment Tax Credit of $43,500 and your 5-year MARCS depreciation credit of $43,100 to help offset the cost. With monthly electricity bill savings, the payback period for this solar installation is just around 3 years!
Earn Monthly Incentives Through SMART
Through the statewide SMART solar incentive program, residential and commercial PV system owners can receive valuable incentives paid out monthly over the next decade or more. A homeowner who installs a 9 kW system that produces 10,000 kWh per year, for example, could expect to receive $15,000 in incentives paid out over the next decade. If a homeowner can qualify to receive $15,000 in incentives through the SMART program, imagine how much you could earn with a commercial PV system!
Last November, the program began receiving applications, which are placed into declining “capacity blocks” on a first come, first served basis. For businesses, this has been a very popular incentive program and Western Mass has already exhausted the blocks. However, for businesses in the Greater Boston area, spaces in the blocks are still available, so the sooner you apply, the more incentives you may qualify for — another reason why it’s time to make the switch if you’re considering solar for your business.
Reduce Operating Costs & Avoid Energy Rate Spikes
Aside from incentives, there are also the inherent financial benefits of solar to consider. Solar is one of the best investments you can make for high ROI and a short payback period. By installing solar panels on your company roof, you’re essentially purchasing 25 years’ worth or more of electricity at a low, fixed rate. This gives you significantly lower electricity bills from month to month, stabilizes your budget, and helps protect you against rising energy costs.
Increase Energy Independence & Build Brand Equity
Of course, investing in solar also helps your business increase its energy independence and minimize its reliance on fossil fuels. By reducing your carbon footprint, you’ll be doing your part to help the environment and signaling that you are environmentally responsible — something that many consumers value.
Discover the Benefits of Investing in Solar
From Westhampton to Boston, including Springfield and Worcester, businesses are experiencing the economic benefits of clean solar energy. Will your business be one of them? If you’re considering making an investment in renewable solar energy, talk to the team at Boston Solar. We’ll answer your questions about investing in solar and help you understand how solar can offer long-term savings for your business.
Wondering what a solar investment could do for your bottom line? Learn more about the financial benefits of solar for business. Call 617-858-1645 or contact us to talk to our solar experts!