With the new Biden administration, should my business invest in solar?
The recent inauguration is expected to bring about many changes in the nation’s energy policy. With many thinking that a new era of support for clean energy will usher in a Green Wave. Our nation’s growing energy needs will be met by more and more clean energy. However, it does pose a short term dilemma for a business owner: Should I invest in solar now, or take a wait and see approach?
One might consider that the new administration might bring new regulations and incentives that could push the cost of solar lower; but we should also consider the risks to business. Much of the early platform discussion on promoting clean energy has focused on two topics: Incentivizing large, utility-scale solar installations and raising taxes on energy generated from fossil fuels.
We’ve already seen more of our nation’s energy mix come from large scale solar installations; think of former fields now covered with solar panels. It’s no secret why the utilities have been on solar farm building spree; the cost of generating power with solar has fallen to the point that it saves the utility money to produce energy verse dirtier technologies like fossil fuels. However, as the utilities generate more energy from these sources are they passing on the savings to you?
If your company has a goal of reducing energy costs, your business will get the biggest impact from an on-site, behind the meter installation. That will allow your business to avoid the full cost electricity when purchased from the grid, as well as benefit from the significant tax advantages and financial incentives. The federal Investment Tax Credit (ITC) was recently extended and remains at 26% of the total project cost. Additionally, if a business starts a project in 2021 the project qualifies for rapid depreciation on federal taxes. These combined federal incentives can often result in as much as 50% of the project being paid for in tax savings alone.
In addition to the federal incentives, many states offer incentives to encourage business to adopt green energy. These incentives can come in the form of sales taxes breaks, cash payments or even multi-year structured payments directly to your business.
With the added risk that the cost of energy will be increasing with new taxes, there has never been a better time to consider solar for your business. Genie Solar is here to make the process of going solar easy. We handle the design, installation, permitting and commissioning. Call us today, and you too can join our many satisfied customers in saving money.