Solar Panels That Fit Your Needs and Budget
The greatest thing about solar energy systems is that they are scalable to meet your energy consumption needs. For reference, average home solar energy systems are 6kW (6,000-watt) to cover most of a household’s needs, but some big businesses have systems that are 250 kW or more. It’s easiest to quantify the price of a commercial solar system in terms of price per watt, and the average cost of solar in the United States is $2.87 per watt, before any incentives are applied.
Solar Incentives For Businesses
There are many solar incentives also available to business owners in North and South Carolina, which we’ll cover in more detail later. These incentives can cut the overall upfront cost of your solar energy system by as much as 60%.
Another important number to look at is the average monthly utility bill for commercial property owners, which comes to $538. However, the average bill that commercial property owners pay after installing solar is just $91, which shows a decrease of 83%. Installing a solar energy system makes your monthly electricity bill much lower but also much more predictable, as you can lock in your electricity rates and insulate yourself against frequent rate hikes by your utility company as well as inflation.
Part of what our team of solar experts here at Synchronicity Solar does is to determine what size of the solar energy system is right for your business in order to achieve the balance between a reasonably sized investment and a solar energy system that can keep up with the demands of your business and will thereby reduce your energy bill by a significant amount.
Federal Solar Incentives
First up is the Federal Investment Tax Credit for solar energy. This is applicable for anyone in the United States who installs a new residential or commercial solar energy system, and it allows you to deduct 26 percent of the total cost of your solar energy system from your federal tax liability amount.
If the credit amount is higher than your federal tax liability for the year, you can rollover the remaining credit to the following year. However, in 2021 the credit amount will go down 22 percent, and in 2022 and beyond, there will be a 10 percent credit for commercial installations but no credit for residential systems.
In North Carolina, you can pay even less for your solar system when you depreciate your investments using accelerated depreciation. You may now depreciate 100% of your solar investment.
Please consult with your tax advisor. We are not business tax law specialists.
NC Solar Incentives
Duke Energy Rebates
Building Permit Rebates
If your business is in Asheville, you can get a rebate on the required building permit for installing a solar energy system.
This policy allows you to essentially sell any excess clean energy that your system produces to the grid in exchange for credits from your utility company, which can then be used against your power bill in months when your solar energy system might not produce as much.
NC Solar Incentives
State Tax Credit
South Carolina offers a state tax credit that allows you to deduct 25% of the cost of installing your solar energy system from your state tax liability amount, and similar to the Federal ITC, you can rollover unused credit to subsequent years if necessary.
Utility Company Rebates
The rebate offers in South Carolina are a little bit different, with Duke Energy Progress offering $1 per watt, up to 1 MW for commercial systems. Yes, that’s one million watts, so you could earn $1,000,000 in rebates. Santee Cooper also offers a rebate, but they offer $1.30 per watt with a maximum rebate of $5,200.
South Carolina also has a net metering policy, which works the same as what we described for North Carolina. The exact rate of compensation for excess energy depends on which utility company’s service area covers your business location.
GIVE YOUR BUSINESS A GREEN IMAGEEmployee satisfaction is often increased by a clear company policy of sustainability. Employees can feel better about coming to work each day, knowing that they are working for a company that strives to make the world a better place.
Invest In Local
You can support the local economy in the process of installing your solar energy system. When you contract with a local solar installation company, that translates to work for members of your community. This creates fulfilling jobs that pay a living wage, and these contractors could potentially become customers of your business as well. More jobs in your area translate to more disposable income for community members, who then may choose to spend their dollars at your business. Everyone wins!