Should you invest in commercial solar?
For the past 50 years, electricity costs have skyrocketed. From about 2 cents per kilowatt-hour to over 12 cents per kwh! That’s a 500% increase!
Rates are now projected to increase even more quickly: 4.5% every year. In five years that would be 22.5%.
- If your monthly electricity bill is $1,000, in five years it will be $1,190. In ten years, $1,485!
- If your monthly electricity bill is $5,000, in five years it will be $5,960. In ten years, $7,430!
- If your monthly electricity bill is $10,000, in five years it will be $11,925. In ten years, $14,860!
Reduce your electricity bills up to 100%.
Commercial solar panels will dramatically reduce your electricity bills. All the way up to 100%. In just one year …
- That $1,000 electricity bill will add $12,000 to your bottom line.
- That $5,000 electricity bill will add $60,000 to your bottom line.
- That $10,000 electricity bill will add $120,000 to your bottom line.
What will you do with all that extra capital? Invest in more equipment? Hire that extra salesman? Or, finally take that long-postponed vacation?
Recoup your investment in short order.
Yes, the initial installation of commercial solar panels is a big-ticket item, BUT within 4 or 5 years, it typically pays for itself. Much quicker than most other investments.
Up to 72% in offsets
Plus there are up to 72% in offsets to assist with the installation cost.
Tax Credits — The federal government offers a 30% tax credit off the installed cost of your business’s new solar system. For every dollar spent on solar, you can reduce your year-end tax liability by 30%
Federal and State Depreciation — A commercial solar system can take advantage of accelerated depreciation. This offsets an additional 37%.
Utility Rebates — Depending on your utility provider, you may qualify for another 5% in savings off the cost of your solar installation.
Smart time to invest in solar
There's never been a better time to invest in solar. Plus with certain favorable programs scheduled to phase out or reduce benefits, it's truly smart not to delay your investment. Here's why ...
- Many Meters, One Installation — A new meter aggregation program allows you to log kWh credits on one meter and then apply those credits to multiple meters. This means you no longer need separate solar installations for different meters.
- Lock in Rate for 20 Years — This is a big deal. Utilities are relentless about tweaking rates to squeeze the most money out of you. For a solar installation, the PUC has determined that for 20 years, you will be grandfathered in with the rate schedule of your choice.
- Lower Equipment Costs — Equipment costs have come way down.
- More Bankability — Financial institutions are finally catching on to the advantages of solar for business and are offering favorable terms.
- 30% vs. 10% Tax Credit — Federal Tax Credit – At the end of 2019 the 30% Federal Tax Credit will be reduced to 26%, then 22% for 2021 and finally 10% in 2022.
Solar that is just right for your business.
It's important to properly size your solar array. You don't want to over-build or under-build. Our first step is to perform a detailed assessment of your operations.
Our assessment begins with a look at your historical energy use. Pickett Solar has developed a tool that models your electric usage against available utility rate schedules.
Your utility charges based on several variables:
- Time of Use: what time of day you use power
- Demand Charge: the maximum amount used in a 15-minute window
- Season: summer or winter
We download your 15-minute readings from the utility for an entire year and then add in what a solar array will produce.
Weather excluded, we calculate what your new solar system will produce each month. Then we break all the numbers down to tell you which rate schedule will work best with solar for your operations.
Next we assess your projected usage for the future, which includes potential expansion. You don't want to get caught with a system that's under-built. Then we look at the space available for solar panels. Now we're ready to run the numbers.
Numbers never, never lie.
If we do recommend an installation of commercial solar panels for your business, you can rest assured you have the necessary information to make a smart decision.
With all the solar companies out there, it’s difficult to sort through them and know whom to trust. With Pickett Solar you get a Fresno / Clovis area company with deep roots in the community. As a division of Don Pickett & Associates, Inc., we also have an extensive background in design and construction. That means we can catch potential construction problems prior to signing a contract. This saves you from unpleasant surprises when it comes time to pull permits and install your solar system. Plus we know the ins and outs of local governmental regulations. We also know the people in charge. Your project will move smoothly through the regulatory process. If a problem arises, key personnel can be onsite quickly whether during construction or after completion. You won't wait for someone to travel from hundreds of miles away.