5 Reasons to Include Solar in Your Capital Budget

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 an immediate bottom-line impact. 

Financially-savvy companies such as Walmart, Costco, Target, McGraw Hill, Johnson & Johnson, PepsiCo, Apple, Sub-Zero, and many more are driving a massive expansion of commercial solar worldwide. They understand the value of making 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 consider when deciding 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 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 adds to your bottom line. Reputable solar contractors can help you determine how adding solar can impact your bottom line.

2. Lock in solar tax incentives before they're gone

This year is the only year of the 26% federal solar tax credit. In 2021, this lucrative incentive will drop again—to 22% before landing at a permanent 10% in 2022. The good news is that there's still time to lock in the 26% rate if you can achieve a few key milestones before the end of 2020. 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

Twenty-five years is very long, yet that’s also the average warranty for 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 workplace has been shown to improve employee engagement, satisfaction, and productivity. Adding solar to your organization, whether through a more traditional roof mount or 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 energy, you could also add to your bottom line by 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 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, boosting your company’s reputation.

With the 26% solar tax credit decreasing again at the end of this year, going solar now will ensure the biggest and fastest return on your commercial solar investment. Contact a member of our commercial solar team to schedule a consultation and start your solar project today!