With consumerism on the rise with population, enterprises need to increase their product output levels while shrinking expenses. In such a scenario, finding a path to reduce energy expenses can save millions of dollars in the long run. The benefits of going green with solar power system don’t end there. Besides tax credits, the growing public intent to protect the climate through green consumerism can work in the favour of enterprises opting to go solar. As it appears, there are multiple reasons why enterprises should find installing solar panel systems profitable just like- Apple, Amazon, Walmart, Target, Google, Kaiser Permanente are ramping up their solar capacities year after year.
What makes solar energy an indispensable upgrade for enterprises?
Get Solar Investment Tax Credit (ITC)
Understanding the importance of solar energy transition, the Federal Government offers many incentives and benefits.. The Solar Investment Tax Credit (ITC) is one of them. This tax credit can help in handling the financial aspect of installing a commercial solar plant. Through ITC businesses can reduce their federal tax liability, thus making substantial savings.
Solar Tax Credit Extension
The United States Congress has passed a bill providing a two-year extension on its solar investment tax credit (ITC) facility. With the help of this extension it will be easy for businesses to get 26% of the tax credit of their solar installation costs in 2021 and 2022, thus considerably shortening their payback period.
There are additional incentives offered by both local and federal offices that can maximize savings for enterprises using solar panels in the USA.
SMART solar incentive program is another great example. Through this facility businesses can get a fixed rate per kWh of electricity for a duration of 1 or 2 decades from utility companies.
Through the Modified Accelerated Cost Recovery System (MACRS) businesses get to recover a part of their commercial solar power system installation cost in annual tax deductions. They also have the option to choose for 100% bonus depreciation or a 5-year depreciation schedule.
Besides incentives, that help shorten ROI and payback period for businesses, there is also the benefit of building a sustainable business model by adopting green energy.
Building a Sustainable Business Model That People Want
A sustainable business model works to improve the environment, ethically and responsibly using the resources without harming the environment negatively. Such strategies lead enterprises to support community and economy without adding extra expenses to the business. In a nutshell, it is a ‘triple bottom line strategy,’ maximizing returns through offering better solutions, supporting the people and the planet.
These strategies are needed as it can keep CO2 emissions in check and reduce solid waste production from 27 billion tons by 2050. Fortunately, growing global awareness is leading consumers to show incredible support to socially responsible companies. In a survey released by Markstein nearly 70% of consumers check if their favourite brands are addressing social and environmental issues and close to 46% of consumers check a brand’s climate favourable actions before buying from them.
These numbers are quite persuasive for enterprises to support and act towards realizing the green energy mission of installing solar panel systems.
Adopting solar can help enterprises to reduce operating costs, cut overhead business costs, build energy independence, receive protection against changing utility rates, tax benefits, thus transforming this transition into an investment with consistent returns. Understanding the benefits and the importance of going green more than 290 major global companies are on their path to being 100% renewable through the RE100 initiative.
An enterprise bears an incredible responsibility to bring positive changes in the world by taking responsible actions. Now, with continuously falling solar power system technology costs, improving technology standards, new incentives, and changing consumer perception towards climate improvement, it is easy to take the right step forward.