Why Do Businesses Go Solar?
•Your Return on Investment
Businesses are often forced to prioritize available capital across competing initiatives. With a rapid return on your investment, a well planned solar photovoltaic solution can be one of the best decisions you can make.
•Rapid Payback Period
A solar project can provide a payback period within six years to earn back your initial investment, depending on the solution and financing. This is very attractive considering the long-term life of your asset.
•Improved Internal Rate of Return
IRR is a standard metric for capital budget analysis. A good internal rate of return shows businesses the project’s annualized effective compounded return rate compared to other strategies. The IRR on most solar projects ranges between 12-27% depending on specific markets.
•Eliminate Energy Cost Volatility
Government Incentives You Can't Overlook!
Federal, state and local governments continue to offer excellent rebates and incentives for businesses to make that initial solar investment. These programs can radically reduce the upfront cost of a solar solution, while providing a reliable long-term revenue stream. Louth Callan Renewables will identify which incentives apply, building you a tailored solution.
•Investment Tax Credits
Businesses should act quickly because the 30% Solar Investment Tax Credit is now extended for commercial projects that begin construction by the end of 2019. In 2020, the tax credit will then reduce to 26% and to 22% in 2021 for projects begun in those years.
•Federal Depreciation Benefits
This program is one of the best tax incentives to date. The Federal Modified Accelerated Cost-Recovery System (MACRS) permits solar system owners to deduct their solar investment on a dramatically accelerated 1-year schedule.
•Additional Federal Benefits
There are several other federal incentives that may be available based on specific business situations, including the USDA Rural Energy Grant Program and the New Markets Tax Credit Program. Louth Callan Renewables will ensure you tap all incentives available to you.
•Bottom Line for U.S. Businesses
Federal solar incentives can provide corporate solar system owners with significant economic benefits, including reduction of the net investment for solar by more than 60%.