The Right Time for Businesses to Go Solar is Now
At a time when political polarization is probably the worst it has been in any of our lifetimes, can you think of an issue that has so much public approval that both California Gov. Gavin Newsom and Florida Gov. Ron DeSantis have recently implemented policy in support of it? That issue would be solar, or more specifically net-metering, which is one of the drivers of the cost saving benefits that going solar provides.
Last month, Gov. DeSantis vetoed legislation that would have ended net-metering in Florida — he gave as part of his rationale that Floridians are already grappling with record inflation that is straining household budgets and the downstream impacts of sunsetting net-metering could introduce even more pressure on skyrocketing utility rates.
This is, in fact, not a problem that is unique to Florida or families — business owners across the country are also feeling the crunch of soaring inflation and electric bills and every day a new headline paints a more dire picture. In April, Miami ratepayers spent 38% more on energy than a year prior, in Dallas, 28% and in Minneapolis, 27%. And the situation is only getting worse — the North American Electric Reliability Corporation recently announced that projected extreme heat and drought conditions this summer will contribute to a high risk of energy shortfalls for much of the country, driving up the cost of power and the threat of outages.
So, to summarize, we have surging inflation and utility rates, an increasingly unstable electrical grid, and bipartisan support for the solar agenda — could the timing be better for your business to go solar?
Most business and property owners do not realize just how good the economics are from installing solar. Obviously producing your own power and therefore saving money on your electric bill is a major factor in the decision to go solar, particularly as utility rates rise and financing a solar system with a fixed rate loan allows you to essentially hedge against inflation and lock in your cost of power today. However, perhaps even more enticing, are the federal tax incentives your business will be eligible for, including a 26% rebate on the cost of the solar system and 100% bonus depreciation all in year one of ownership.
So, depending, of course, on your business’s individual tax situation, you could get a federal tax refund of approximately half the cost of your solar system immediately.
On top of these federal tax incentives, many states and municipalities have their own solar incentive programs. This is why business owners in states like New Jersey and Illinois are often surprised to learn that installing a solar system can be just as lucrative (if not more) for them as for their counterparts in sunnier parts of the country.
Additionally, solar provides energy independence at a time when the electrical grid has become increasingly unreliable. Between storms in Texas, fires in California and hurricanes in the gulf region, more and more business owners across the country have had to grapple with the impact that losing power has on both their bottom line and the customers they serve. Generating your own power onsite can help alleviate these concerns, and may even drive additional value. In this recent article, a restaurant owner notes that having power during a blackout actually increases business through being able to serve incremental customers during a time of crisis.
Customers are also increasingly demanding that businesses they patronize demonstrate their commitment to sustainability — this is also true of lenders and investors. Going solar is one of the easiest and most cost effective ways to do this.
Even after going through all these reasons why the timing is right for every business to go solar, there are typically two roadblocks that stand in the way for business owners: the upfront cost of installing a system and the million other competing priorities that they juggle running their business.
Sunstone Credit can fix both of these problems, by offering 100% financing for solar with no personal guarantees or property liens, and providing a concierge, “Green Glove” service to coordinate the installation. Sunstone’s aim is to get your business to save money and reap the other benefits of solar from day one with as minimal effort on your part as possible.
Our solutions work for property owners, tenants and landlords and are available in all 50 states and DC. The first step in our process is to provide you with a preliminary analysis of how much money your business can save with solar — its completely free with no obligation to move forward. Fill out this form and our team will be in touch.
Don’t wait for your utility bill to go up 50% or for you to lose valuable sales and customers the next time the power goes out, the best time to go solar is right now.