New City, NY
Commercial Solar: 3 Reasons Why It’s So Cost Effective for Businesses to Go Solar
MACRS Deprecation for Solar is Incredible
1) MACRS Depreciation or the Modified Accelerated Cost Recovery System can be used to depreciate a commercial equipment asset. Solar Panels on a commercial building absolutely qualify for this. The depreciation of a building’s solar panels qualified for the 5 year cost recovery period which can be very aggressive depending on your business's tax appetite and profitability. This is a significant driver of private investment into major solar assets throughout the country. This is the one tax incentive that commercial business owners are entitled to that residential homeowners are not. There are also bonus depreciation schedules that some businesses may qualify for. For more information about MACRS deprecation as it applies to solar, please refer to https://www.seia.org/initiatives/depreciation-solar-energy-property-macrs.
Make Your Biggest, Variable Expense Much Lower and Predictable
2) For some businesses that use a lot of power, electricity is one of the biggest if not biggest expense that they have. Some examples of these are data centers, warehouses with heavy machinery and pretty much any business that uses a lot of juice. So going solar and making that expense a fixed and a predictable cost can be extremely effective and profitable. And as a company invests into a solar system, they are also investing into an asset on their building that increases it’s value dramatically, without increasing property tax.
Private Equity to Finance or Lease a System for Your Building
3) There is a handful of private equity investment companies out there that can finance your solar system or can put you into a lease-to-own type of agreement. Whatever your business budget may be or tax liability you may have, there is likely a program out there for your that can be financed by a private equity firm. There are all different term loans and capital leases out there as well. The bottom line is that to install a valuable solar panel system on your property, you don’t have to lay out much money, if any at all. And the reason being is that the incentives for commercial solar are currently so good. In addition to MACRS, there are also increased values of state tax credits, for example the NY State Equipment credit or the New York State Solar Tax Exemption.
If you are interested in solar for your commercial building and would like to see options for a Capital Lease, or Standard Lease for a solar system then please visit www.integritysolarsolutions.com and request an evaluation.