What Are the Financial Incentives for Businesses To Go Solar?
As the adoption of solar energy accelerates, business owners are beginning to realize that not all opportunities are for homeowners. Commercial solar can be a strategic move to boost growth in every industry, from healthcare to hospitality. The benefits of commercial solar, like reduced downtime and less dependence on the grid, are clear — but how does going solar affect your bottom line? Here are three of the top financial reasons to add solar to your business strategy and one glowing opportunity for Missouri business owners in particular.
1. Investment Tax Credit
The original federal investment tax credit (ITC) for businesses going solar has been expanded through the passage of the Inflation Reduction Act (IRA). The act increases the ITC to 30% of the cost of a commercial solar energy system and expands it for another 10 years, with the intent of driving further clean energy adoption. The ITC is great for any business, from mom-and-pop retail stores to manufacturing.
2. Net Metering
Net metering is one of the most powerful financial incentives for Missouri and Arkansas businesses to go solar. If your system is substantial enough to power your entire property, there will be days when it generates more power than necessary. If you have an energy storage system, you can set it to save that excess power for your use later, but you can also sell the excess back to the grid for credits you can use when the system doesn’t generate enough to cover power needs.
3. Business Depreciation
Thanks to our tax code, businesses in America can use the Modified Accelerated Cost Recovery System (MACRS) to expense 85% of the energy system’s cost in the first year after purchase and expense the rest over the following four years.
PACE Program for Missouri
If you’re lucky enough to operate your business in qualifying parts of Missouri, you can apply for the Property Assessed Clean Energy (PACE) program. PACE offers a way to finance your entire solar energy system for a period of up to 10 years, in which you pay part of the system’s cost annually via your property tax bill. If you choose a system efficient enough to offset your payments, you can even make money off this program.
Make the Smart Investment in Solar
Thanks to the IRA and ongoing state-level incentives, there’s never been a better time for your business to go solar. Whether you just want to augment your energy flow with a small solar system or want to install an array big enough to power your entire property, Solera Energy is your partner in Missouri and Arkansas. We serve businesses in a variety of industries, from automotive dealerships to architects and contractors, and we’re ready to help you take the next steps.