One of the biggest expenses a business may have is the cost of electricity. When your company relies on the commercial power grid, it means that you are affected by fluctuations in electric rates. Sudden price increases may cause uncertainty in your business, particularly when it comes to cash flow management. This is why it’s important to consider getting a solar panel installation from companies like Winki Solar.
In the US, solar power panels have become a mainstream source of electricity. Fortune 500 companies like Walmart and Intel converted many of their office buildings into solar energy with the help of companies like Winki Solar. At first, you might think that it’s not feasible for small and medium-sized businesses, but you have to remember that the prices of solar panels have dropped and they can offer immense benefits to various organizations.
Reduce Overhead Costs
Business overhead includes expenses that are outside of wages and other operational costs. This includes supplies, insurance coverage, utilities, property maintenance, and others. One of the overhead expenses you can easily reduce is the electricity bill.
It is vital for every business to have a continuous supply of electricity. Usually, in the workplace, you don’t only use lights. You also use heating and cooling systems as well as heavy machinery. Electrical devices also have their own demands for electricity. This is why reducing electric costs remains a challenge, and switching to solar power is a major step towards it.
Solar Tax Benefits
Perhaps the greatest reward you’ll get for converting to solar power is the tax benefits from both the state and federal governments. All government levels support the switch to clean, renewable, and efficient solar power. They offer highly beneficial tax incentives and financial assistance to those who switch to solar power.
26% Federal Investment Tax Credit (ITC)
The US Federal government tax allows you a rebate of 26 percent on the total cost of your solar power system. If you paid $20,000 for a solar power installation, you will get a $5,200 tax credit. This program has no cap which means that you can invest as much as you want in solar power.
Solar Renewable Energy Credits (SRECs)
This is a solar energy option that will allow you to recover equipment installation expenses by using the system’s energy production. The government puts it that one SREC is equal to 1,000 KWHs. The government declared it mandatory for companies to participate as well as honor every SREC produced from the solar panel installed.
You may also enjoy accelerated depreciation on your solar energy installation. This is because of the program of the federal government known as the Modified Accelerated Cost-Recovery System (MACRS). This initiative lets you write off the entire solar panel system in the first year of installation.