Direct ownership of a solar energy system has many benefits. Under a direct ownership model the business or property owner purchases the solar PV system outright using the appropriate mix of debt and capital funds. Frequently, the combined benefits of positive cash flow coupled with aggressive tax incentives delivers attractive investment returns.
The combination of federal and state tax subsidies, state financial incentives such as SRECs and Net Metering, make owning a solar energy system a win-win for property owners. Solar ownership can be a very sound business decision with several benefits.
Benefits of Ownership:
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.
Solect will work with you during the feasibility assessment to determine which financial solutions are most appropriate for your long-term success.