Clean Energy Intro: Solar Businesses
Many businesses are putting the sun to work for them and saving a bundle on utility bills. While much of the country is experiencing increasing energy costs, some are looking to the sun as a solution.
Although nearly all solar applications will eventually save money, a large upfront investment is required. Some businesses are in the position to save a lot more money than others. Let’s explore which businesses can benefit the most from solar energy.
Use Large Quantities of Hot Water
Solar thermal technology is utilized to heat water and is frequently an impressive 70-90% efficient. Restaurants, gyms, apartment buildings, and laundromats are examples of ideal applications. Exactly the opposite of a gas or electric hot water heater, the more use the solar system gets, the larger the energy and cost savings.
Businesses Paying High Tax Rates
Two federal incentives exist to encourage solar installations. One is a federal tax credit of 30% that is set to expire at the end of the year (link). The tax credit is not affected by the tax rate. Businesses can also take an accelerated 5 year depreciation of the solar system. Businesses that pay a higher tax rate, will enjoy greater the tax savings from an accelerated depreciation, while businesses that don’t need additional write-offs won’t save a penny.
