Businesses across a wide range of industries are investing in solar energy to save money, generate new revenue, and support the environment. Solar energy continues to experience tremendous growth in the Northeast as incentives and attractive pricing on equipment and installation make investing in solar photovoltaic (PV) systems a smart business decision.
Commercial customers, who own property or lease space, as well as their tenants, will find several benefits from investing in solar energy.
The federal and state governments provide subsidies and tax advantages to incent property owners to deploy solar PV solutions. A property or building owner with the right tax situation can reduce the cost of deploying a solar PV system by more than 50%. In many states, including Massachusetts, SRECs (Solar Renewable Energy Certificates) can be sold to local utilities to generate an additional revenue stream for the property owner. Rhode Island also has a new Distributed Generation Contract Program whereby the local utility will purchase the electricity generated from a solar system.
Electricity rates have risen over 70% in the last 10 years and they do so in a volatile way – making it difficult to budget this line item year over year. With solar, you can accurately forecast the cost of your energy use for more than 20 years.
Solar energy is clean, renewable and abundant. When you invest in solar energy you are no longer tied to the volatile price of fossil fuels and can free yourself from dependency on foreign oil.
Being “green” is attractive to property owners who want to be part of the renewable energy revolution. Whether their your reasons are financial, driven by a reduced carbon footprint, or purely philosophical, demand for clean renewable energy is real and growing. Due to current incentives, solar energy is generated at a significant discount to normal utility grid rates and is independent of the grid itself, which reduces the property owner’s reliance on carbon-based fuels.
Tenants as well as prospective employees are increasingly weighing a property owner’s or company’s environmental policy and actual commitment to greenhouse gas reductions in their decision criteria. It’s critical to communicate solar’s green benefits into the marketing plan since green properties powered by renewable energy have shown increased occupancy rates.
Commercial Solar Financing Solutions
There are several financial incentives that make deploying solar energy a win-win for business and property owners allowing you to reduce costs and generate an additional revenue stream.
The most common financial solutions utilized by businesses and commercial property owners are capital purchase or bank financing (direct ownership), solar leasing, and Power Purchase Agreements (PPA).
Solect will work with you during the feasibility assessment to determine which financial solutions are most appropriate for your long-term success.