April 12, 2024

Business Bib

Business & Finance Blog

5 Ways Going Solar Can Save Your Business Money

3 min read

As a business owner, you regularly consider ways that you can keep overhead low. Switching to solar energy is a trendy, new way to cut costs while doing something good for the environment. If you’re not sure about spending the money to switch to solar energy, you may be surprised to learn that initial costs aren’t as much of a hit as you may think. Read on to learn how going green and switching to solar saves money for your business.

1. Forget About Maintenance

Think about solar energy panels- they’re flat and stationary. Since there are no moving parts, little to no maintenance is required. You won’t be spending money calling in an electrician to fix your system. This can free up some of the rainy day funds that you have set aside in case of maintenance emergencies.

2. Reduced Energy Costs

The main reason most business owners make the switch to solar is to cut energy costs. When you use solar energy, you’re not paying for sunlight. You may be concerned about the initial cost of installing solar panels, but according to SunRun.com, both equipment and installation costs for solar panels have been steadily falling for years. It’s never been cheaper to make the switch to solar energy. Within three to seven years of installation, solar panels more than pay for themselves in energy savings. 

3. Tax Break

When you install solar panels, you’ll receive a federal (and maybe even a state) tax break. In 2016, owners of new solar panel systems received a tax break of 30% of the cost of their solar panel system from the federal government. Keep this in mind when you’re choosing your new solar panels- the more you spend, the bigger your tax break will become.

4. Attract Green-Minded Customers

When it comes to attracting customers who care about sustainability, having solar panels on the roof of your business goes a long way. There’s no advertisement that can do what solar panels do. They’re proof that you’ve put your money where your mouth is, and you care about giving back to your community by doing the right thing for the environment. If you live in a green-minded community, this can work wonders on helping potential customers make the decision to walk through the doors of your brick and mortar business.

5. Accelerated Depreciation

In 2016, businesses were able to deduct 85% of their solar investment in their first year of making the switch to solar power. This is a huge factor if you’re not sure about shelling out the cash for the initial installation cost. Many businesses are able to nearly recoup their entire investment within a year of installation.

If you’re still on the fence about whether or not your business should go green, it’s time to make the call. Do the right thing for your business, your bank account, and the environment. Switching to solar energy pays for itself quickly, helps you during tax time, and can bring in a new group of customers.