It’s that time of year again when companies start planning their capital budget for the following year. While evaluating and incorporating needs are important, like replacement machinery, new plants, or new research and development projects, you shouldn't miss this opportunity to consider solar as a smart, long-term investment with immediate bottom line impact.
Financially-savvy companies such Walmart, Costco, Target, McGraw Hill, Johnson & Johnson, PepsiCo, Apple, Sub-Zero, and many more are driving a massive expansion of commercial solar around the world. They understand the value of making their own electricity and locking in a fixed, predictable expense, rather than gambling on rising energy costs.
Since capital budgeting helps assess whether or not a long-term investment is in the company’s best interest, there are important factors to take into account while making a final decision to go solar. To help, we’ve put together the top five reasons to include solar in your organization's 2020 capital budget plan.
1. Add to your bottom line
When you’re producing your own clean, affordable energy with solar panels, that’s money saved by not paying your utility for more expensive electricity (usually 3x more). By reducing your reliance on the utility monopoly, you free up money that can be allocated to other areas of your business, which in turn adds to your bottom line. Reputable solar contractors can help you determine the impact that adding solar can have to your bottom line.
2. Lock in solar tax incentives before they're gone
This year is the last year of the 30% federal solar tax credit. In 2020, this lucrative incentive begins to drop—first to 26%, then 22% by 2021 before landing at a permanent 10% in 2022. The good news is that there's still time to lock in the 30% rate if you are able to achieve a few key milestones before the end of 2019. To learn more check out our blog, "Why You Should Act NOW for the Solar Tax Credit," or contact us (soon!) for a free consultation.
3. Secure an investment that will last for decades
25 years is a very long time, and yet that’s also the average warranty of most modern-day solar panels. Even after their warranties expire, today's solar panels are expected to produce reliably for 30-40 years. That’s decades of clean, inexpensive, and green energy and reliable performance well beyond the ROI period for the initial investment.
4. Increase employee satisfaction
According to Inc.com, sustainability in the work place has been shown to improve employee engagement, satisfaction, and productivity. Adding solar to your organization, whether it be through a more traditional roof mount or with solar carports (employees and customers love shaded parking!), is a great way to add a sustainability initiative and appeal to a growing environmentally-aware workforce. While saving money through producing your own energy, you could also add to your bottom line through having more productive employees, completing more tasks in less time, and boosting the overall morale of your organization.
5. Positive impact on the environment, community, and your reputation
It’s no secret that solar panels are good for the environment. They not only have zero emissions attached to the energy they create, but they also save water when compared to traditional energy sources. These environmental benefits can span throughout the community your business operates in by helping build a healthier and more resilient society. This positive effect can be traced back to your organization, providing a positive boost to your company’s reputation.
With the 30% ITC coming to an end, 2019 is surely the most important year for solar in more than a decade. Contact a member of our commercial solar team to schedule a consultation and start your solar project today!
*This blog has been updated since it's original publication of 9/24/2018 to reflect current solar incentives.