Commercial & Industrial
Your business is already a great candidate for solar.
Most business owners are unaware of the direct and indirect benefits of investing in a solar array.
Here is the breakdown:
Surface Area: Commercial buildings have unused and unobstructed "roof real estate". Why let this area sit dormant when it could be put to good use?
Each module can utilize roughly 10 sq ft, so the more room you have, the more you can save on electricity costs. Our project managers are able to customize the array size, design, and production profile to fit your needs and budget.
Reduce Operation Expenses: Installing solar can drastically reduce your operating expenses by eliminating a large and unpredictable utility bill.
What other projects or initiatives will your business focus on as a result of reduced operating expenses?
Dodge Rate Hikes: Additionally, you’re able to avoid the traditional utility rate hike by locking in a fixed price per watt with solar. Utility rate hikes are traditionally 3% per year, so with a large consumption profile this unnessesary cost certainly adds up.
Low Maintenance: Once a system is installed, there is little to no maintenance. Most of the components have manufacturer warranties for the next 10-30 years, so there is comfort in knowing this system will be supported for a very long time.
Marketing: Consumers are continually seeking environmentally friendly products from organizations with sustainable practices. If operations and manufacturing are powered by solar, you are now differentiated from the competition in more ways than one.
The Bottom Line
30% Federal Tax Credit: The Investment Tax Credit (ITC) provides your business a 30% credit of the total system cost. The ITC applies to both residential and commercial systems, and there is no cap on its value. The ITC then steps down to 26% for projects that begin construction in 2020, 22% for projects that begin in 2021, and after 2021 the tax credit will remain at 10% for commercial systems.
Illinois Solar Renewable Energy Credits (SREC’s): The Future Energy Jobs Act (FEJA) was passed in 2017 and has played a key role in restructuring the SREC incentives for Illinois. SREC’s are allocated from the production of a system. For every 1,000kW hour produced (and forecasted), an SREC payment is awarded. Under FEJA, a 15-year forecasted production is paid out once the system has been energized. In other words, your SREC incentives are allocated ahead of future production. A commercial SREC payment schedule is 20% of the total reimbursement per year, for the next 5 years. It's not uncommon to see commercial SREC payments offsetting 30-40% of the total system cost.
Depreciation: In addition to Federal and State incentives, businesses may take either the 100% Bonus Depreciation in Year 1 or MACRS 5 Year Depreciation, thus reducing the system cost by another 20% in the short term.