Solar panels are the latest trend in reducing energy costs and helping to reduce your carbon footprint. You’ve probably heard about solar panels for residential buildings, but how do solar panels work on commercial buildings?
Much like with a home, commercial solar panels can either supplement your business’s power, or completely remove your business’s dependence on the power grid.
Switching to solar panels for your commercial building carries many benefits.
In this article, we’ll explain why solar panels are essential for businesses in Utah looking to reduce energy costs and their impact on the environment.
How businesses can benefit from solar energy
Solar energy brings many benefits to businesses. Commercial solar panels can save your business money in the long run by reducing your energy bills.
Think about how expensive it can be to power your business. In an office environment, you have all of these computers, lights, printers, and heating and cooling costs, especially with Utah’s extremely hot summers and freezing winters.
This is even worse in a large warehouse, industrial complex, shopping mall, or big box store, where energy costs associated with machinery and HVAC can be through the roof.
Converting to solar panels for commercial buildings can dramatically slash your energy expenses. With solar panels, your business can break free from demand-based energy pricing and rising energy costs.
Commercial solar panel systems can either supplement your energy needs or completely remove you from the power grid. No matter your energy needs, ES Solar will develop a solar system plan that works for your business.
Solar panels for commercial buildings don’t only reduce or eliminate electricity bills, but they can also reduce your carbon footprint.
With the looming climate crisis, reducing your carbon footprint and reliance on the power grid can help to combat climate change. Currently, most of Utah’s energy is generated by burning coal or natural gas. Only a small percentage of our overall energy is produced using green, renewable energy sources.
Couple this issue with growing power demands and the need to invest in infrastructure, and energy costs will continue to climb.
By switching to commercial solar energy, you won’t have to worry about rising energy costs due to demand. You can also rest easy knowing that your business is helping to contribute to a greener future for generations to come.
When people see that your business is using solar panels, they’ll applaud you for your efforts.
Additionally, by using solar panels for your commercial building, you’ll no longer have to rely on the power grid. In the event of wind storms that knock out power lines, or huge winter storms like what Texas experienced in early 2021, your business will be able to continue operating.
But, the benefits of switching to solar don’t stop there.
Solar panel benefits for Utah businesses
Utah is one of the best places in the country for solar panels. Because of Utah’s high amount of sunlight, commercial solar systems are able to produce more electricity than in many other places.
Utah’s solar panel benefits don’t just include production potential, however.
As a commercial business, you may be eligible for tax credits when you switch to solar! That’s right, you have the potential to save even more money.
Federal tax credits for solar panels
The Federal Investment Tax Credit for Commercial Solar Photovoltaics can be claimed on federal corporate income taxes. This tax credit was set to expire, but Congress approved an extension of the tax credit in December 2020.
According to the U.S. Department of Energy, the ITC “provides a 26% for systems commencing construction in 2020-2022, 22% for systems commencing construction in 2023, and 10% for systems commencing construction in 2024.”
To receive this tax credit, businesses must be subject to federal income taxes and purchase new solar equipment, and the panels must be put into service before 2026.
Utah state tax credits for solar panels
According to the Utah Governor’s Office of Energy Development, the Renewable Energy Systems Tax Credit applies to all commercial solar installations, and is “calculated as 10 percent of the eligible system cost of $50,000, whichever is less.”
These two tax credits, in addition to rebates and other programs that may be available to you at your time of purchase, make solar panels an extremely viable option for your business.
Commercial solar panel installation in Utah
Do solar panels work on commercial buildings? Yes! Solar panels offer so many benefits to business, including reduced energy costs, independence from the power grid, a reduction in your carbon footprint, and the opportunity to take advantage of state and federal tax credits.
Are you ready to make the switch to solar energy? As a business owner, you have a lot of decisions to make daily. Finding ways to save money in the long term is often a priority, and we hope solar panels make sense for your business.
ES Solar is the industry leader in Utah commercial solar panel installation. Based in Layton, we have a crew of certified contractors who are ready to tackle your solar project. Commercial rooftop solar panels can be tricky to install. ES Solar gets the job done right.
With ES Solar, you’ll receive a free evaluation and customized solar panel based on your energy needs. This will help you to determine if solar is the right choice for your business.
Contact us today to talk with one of our solar panel experts and book your service with Utah’s top solar panel company! Call us at 801-614-0606.
Article written by Chase Charaba.