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What Makes For A Good Commercial Solar Investment

What makes for a good commercial solar investment? In recent years, the use of commercial solar power has increased rapidly as more and more businesses recognize the many benefits of commercial solar investments. There are many benefits of commercial solar, not only is solar energy better for the environment, but it can also lead to significant cost savings for businesses. In fact, with electricity prices on the rise across the United States, installing a commercial solar system can help offset the impact of rising energy costs.

Over the last year, almost every state in the US has seen drastic increases in electricity prices, for both residential and commercial, over the past year. In 2022 to 2023, New Hampshire saw a 49% increase in electricity prices. Massachusetts saw a 25% increase, Connecticut saw a 35% increase, and Pennsylvania experienced a 26% increase. These figures demonstrate the importance of finding alternative sources of energy, such as solar power, which can provide businesses with more stable and predictable energy costs over time.

So, what makes for a good commercial solar investment? Let’s take a closer look at some of the factors that can help ensure a strong return on investment for businesses considering solar energy.

High Energy Usage

How much energy does your business need to operate? One of the most important factors in determining whether a commercial solar investment is worthwhile is the amount of energy a business uses. In general, businesses that use a lot of energy are more likely to see significant cost savings by investing in solar power. As a rule of thumb, businesses that use at least 120,000 kWh of electricity per year are good candidates for a commercial solar system.

If a business uses less than 120,000 kWh per year, it may still be worth considering solar power, but the savings may not be as substantial. In addition, it’s important to consider the size of the business’s roof, as this can affect the size of the solar system that can be installed.

High Energy Costs

Are you in a state with high electricity rates? This is a key factor to consider Some states, such as New Hampshire, Massachusetts, Connecticut, Maine, and New York, have some of the highest electricity costs in the country, with rates ranging from 23.57 cents/kWh to 31.72 cents/kWh. Businesses in these states can benefit greatly from commercial solar installations, which can help offset the high cost of traditional electricity sources.

As mentioned above, energy rates are on the rise.  Not only will a commercial solar system reduce the already high costs, but it will prevent the unpredictable costs of your energy usage. Once your solar system is operational, you’ll have consistent and predictable operational costs.

Roof & Land Space Availability

The amount of space available for a commercial solar installation is an important factor to consider. While the ideal roof size for a commercial solar system is around 12,000 square feet, businesses with smaller roofs can still benefit from solar power, as there are many different system sizes available to suit a variety of needs. In addition to roof space, businesses can also consider using available land to install solar panels, especially if the roof is not ideal for a solar installation. A solar installation on open land requires enough space to accommodate the panels, the inverters, and other equipment necessary for the system to function.

In addition to the size of the roof, it’s important to consider the orientation and shading of the roof. A south-facing roof with minimal shading is ideal for solar power, as it allows for maximum exposure to the sun throughout the day.

State and Federal Policy & Tax Incentives

If your business meets the three criteria above, the next thing to consider is what state or federal tax incentives are available to you.  Some states offer tax credits or rebates for commercial solar installations, while others have net metering policies that allow businesses to earn credits for excess solar energy they generate and feed back into the grid.

Net metering allows businesses to sell excess energy back to the grid, which can help offset the cost of electricity when the sun isn’t shining. States like Connecticut, Maryland, Massachusetts, New Hampshire, New Jersey, New York, and Pennsylvania all have net metering programs in place, making solar energy an even more attractive option for businesses in these areas.

The federal government also offers the Investment Tax Credit (ITC), which can provide businesses with a credit of up to 30% of the total cost of their solar installation.

Another important incentive for businesses to consider is the USDA’s Rural Energy for America Program (REAP) grant, which provides grants of up to 40% of the total project cost for renewable energy and energy efficiency projects in rural areas.

Solar Renewable Energy Certificates (SRECs) are another great incentive for commercial solar projects. These certificates are created for every 1,000 kWh of solar energy that a system produces and can be sold to utilities to help them meet state-mandated renewable energy goals. The value of SRECs varies by state, and some states have SREC markets that allow businesses to sell their SRECs to third-party aggregators or brokers. For businesses in states with SREC programs, these certificates can provide an additional source of revenue that can help offset the cost of the solar system and provide an even greater return on investment over time.

Does Your Business Meet This Criteria?

If your business meets some of the criteria listed above then you’re perfect for a commercial solar system.

Investing in a commercial solar system can be a smart financial decision for businesses looking to save money on energy costs while also reducing their carbon footprint. By considering factors like energy usage, energy costs, roof size, solar panel efficiency, installation and maintenance costs, and available financing options, businesses can make informed decisions about their solar investments and maximize their return on investment over time. With electricity prices on the rise across the country, now is a great time for businesses to explore the benefits of solar power and take advantage of the many incentives and financing options available for commercial solar installations.

Contact Genie Solar Energy today and we’ll creative the perfect commercial solar system for your business.

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Strict Adherence To Local Law

Landowners considering leasing their land to Genie Solar Energy can have full confidence in our meticulous adherence to legal and regulatory standards at all levels. Our team not only rigorously follows local township laws, ordinances, and building codes but also ensures compliance with state and federal regulations. The extensive experience and deep expertise of our team enable us to expertly navigate the complex legal landscape that governs solar energy projects.

This capability is crucial, as non-compliance can lead to severe fines or even project shutdowns. By choosing Genie Solar Energy, landowners partner with a company that prioritizes lawful operation and risk mitigation, ensuring that every project progresses smoothly and securely from conception through completion and operation.

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Proven Track Record

Landowners looking to lease their land for solar projects should consider Genie Solar Energy, a subsidiary of the established Genie Energy conglomerate, which boasts a proven track record of success in the solar industry. With over 1.8 million solar panels installed, Genie Solar Energy is one of the nation’s leading solar development firms. Our dedicated team includes over 250 professional solar installers, ensuring high-quality and efficient project execution.

This extensive experience and scale reflect our capability to handle projects of any size, offering landowners reliability and expertise that translates into maximized energy production and optimized financial returns from their leased land. Partnering with Genie Solar Energy means choosing a leader with a proven commitment to advancing solar energy and delivering tangible benefits to our partners and the communities we serve.

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Local Solar Development Experience

Landowners considering leasing their land to Genie Solar Energy can take advantage of our unparalleled experience and expertise with local ordinances, laws, and building codes across various municipalities and townships nationwide. Our extensive footprint and history of working within diverse regulatory environments equip us with a deep understanding of local requirements. This knowledge ensures that every solar project we undertake complies seamlessly with area-specific regulations, thus minimizing delays and avoiding potential legal and regulatory hurdles.

For landowners, this means a smoother, faster project approval process and a more efficient path to generating returns from your leased land. By partnering with Genie Solar Energy, you benefit from our adept navigation through the complexities of local regulations, ensuring that your land’s transformation into a productive solar farm is both compliant and expedient.

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Extensive Energy Experience

Landowners considering leasing their land for solar projects will find a robust and comprehensive partner in Genie Solar Energy. As a subsidiary of the internationally recognized Genie Energy conglomerate, Genie Solar Energy is not just a leader in solar engineering and development; our team also brings extensive experience across the broader energy markets, including wholesale and retail electricity markets. This depth of expertise allows us to tailor solar solutions that are not only technically efficient but also economically optimized for each landowner’s specific circumstances.

By choosing Genie Solar Energy, you are partnering with a team that understands the intricacies of energy production and distribution, ensuring a profitable and seamless integration of your land into the solar energy landscape. This comprehensive approach guarantees that our solar projects deliver maximum value, making the most of our shared energy future.

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End-To-End Project Management

Working with Genie Solar Energy offers landowners a seamless and secure experience throughout the lifespan of a solar project. As part of the financially robust Genie Energy conglomerate, Genie Solar Energy manages all aspects of solar development projects from the initial planning and permitting stages through to construction, operation, and eventually decommissioning. This end-to-end involvement ensures that the same experienced team handles the project for decades, providing continuity and stability that many competitors cannot match.

Competitors often lack the resources to manage a project throughout its entire lifecycle and may sell the project to different companies at various stages, leading to potential inconsistencies in management and execution. By leasing their land to Genie Solar Energy, landowners benefit from a single, reliable partner who provides consistent oversight and maintains the highest standards throughout the duration of the project.

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Financial Prowess

Being backed by a publicly-traded company like Genie Energy, Genie Solar Energy brings significant financial stability and reliability, which is a considerable advantage for landowners considering leasing their property for a solar project. This financial strength ensures that Genie Solar Energy can see projects through from inception to operation without the risk of bankruptcy that might plague less financially secure competitors.

Moreover, whereas competitors might lack the funds to complete a project and be forced to sell it, Genie Solar Energy’s robust financial backing allows it to maintain ownership and direct control throughout the project’s lifecycle. For landowners, this means greater security in the lease agreement, timely and reliable lease payments, and the assurance that the project will be managed by a seasoned team with a solid track record in the energy market.