What Are Commercial Solar Tax Incentives?

What Are Commercial Solar Tax Incentives?

 

Everything You Should Know About Commercial the Solar Tax Credit

If you’re considering installing a solar system, one of the most important aspects that will help you make the decision is the federal solar tax credit. This credit has helped thousands of businesses across the country make the jump to renewable energy and save money on utility costs, and yours could be next! 

For businesses that are planning to incorporate solar into their facilities in the future, one thing is for certain – the time is now.

For those interested in going solar but aren’t quite sure what this credit is, you’ve come to the right place! Before you can apply for the solar tax credit, you should understand exactly what it means for you as a business owner. 

What exactly is the Solar Tax Credit? 

Initially introduced in 2005 by the Energy Policy Act, the federal investment tax credit (ITC) was a bill passed by Congress and later extended multiple times. The purpose of this bill was to make it easier for both home and business owners to purchase solar systems and invest in renewable energy. As the cost of solar drops, it becomes more accessible for everyone to convert, saving them money on utility bills and reducing their carbon footprint in the process. 

The federal solar tax credit is not the same as a tax deduction — it’s used as a way to reduce your owed taxes to the IRS, not deduct from your income. As long as you or your company purchased your solar system (as in, you don’t lease the system, you own it yourself), and you pay federal taxes, you are eligible for the solar tax credit.   

To calculate how much you will receive, you can multiply the cost of your solar system by 26%, the current credit percentage. For example, if your system costs $10,000, you would use the equation $10,000 x 26% to determine that your solar tax credit equals $2,600. In addition to saving you money with a tax credit, your solar investment will continue to help you reduce utility costs and energy output. 

To learn more about all of the ways solar can help, check out our blog “Benefits of Solar.”

When Should I Install a Solar System to Qualify for this Credit?

 Previously, the tax credit had intended to drop to 22% in 2021, but luckily for you, there’s still time to maximize your savings! 

Thanks to a new extension to the federal solar tax credit by Congress, customers can still quality for a 26% tax incentive through the end of 2022. Essentially, all projects that begin construction before 2023 will be able to claim this credit and save money on their solar systems. 

How Do I Claim the Solar Tax Credit?

You can claim this credit when you file for your yearly tax return. If you have an accountant to handle your finances, make sure to alert them that you’ve installed a solar system so they know to include that when filing your taxes. 

Are There Any Other Ways to Save Money on a Solar System?

In addition to the tax credit, solar is a depreciable asset under the Modified Accelerated Cost Recovery System (MACRS). According to the Solar Energies Industries association, MACRS is a “method of depreciation in which a business’ investments in certain tangible property are recovered, for tax purposes, over a specified time period through annual deductions.” 

Most businesses are eligible for bonus depreciation and can take the full deduction in Year 1. Depending on a businesses’ federal tax rate, this is an extra 17% – 30% off the total cost of the system.

Finally, many businesses can qualify for state or utility rebates and incentives that improve a solar project’s ROI. In South Carolina, businesses can take a 25% state tax credit. North Carolina businesses served by Duke Energy may be eligible for the Duke Energy Solar Rebate.

How Solar Can Benefit Your Business

For businesses, solar gives you a sizable return on investment, meaning you’ll see your investment more than pay for itself in a short amount of time. Plus, the money you’ll save monthly that you’d normally be spending on your utility bills will be more than worth it! You can reduce your operating expenses while paying off your solar panels. 

In addition to being a sound investment, you will earn recognition within your community by showing your business’ commitment to the environment. 

Going Solar with Renu Energy Solutions 

With over 3,000 installations since 2010, Renu Energy Solutions is an expert in the solar industry. We specialize in both commercial and residential projects and are happy to help our customers on their solar journey from start to finish. Whether you’re just beginning to research your solar options or you’re ready to install a system tomorrow, Renu can assist you in your efforts to save both money and energy! If you’re interested in converting to clean, renewable energy, give us a call or email us for a free consultation
As businesses continue to push sustainability goals and initiatives in 2020 and beyond, savvy planning on the front end can end up saving thousands on a solar investment. If you think your business might be interested in solar, investigate now – thousands of dollars are on the table and January 1st is right around the corner!

Read More About Renu’s Commercial Solar here: 

 

How much energy do solar panels produce?

How much energy do solar panels produce?

 

How much energy do solar panels actually generate?

 

How do solar panels produce energy?

 

Before you can understand how much energy a solar panel can make, it helps to know how they make it. 

 

To make this as simple as possible: solar panels allow particles of light called photons to collide with electrons and knock them free of atoms. When this occurs, electricity is generated, harnessed, and stored as energy in photovoltaic cells. Many photovoltaic cells, or cells that are able to convert sunlight into electricity, make up one solar panel.  

 

 

How is that energy measured?

 

Solar panel potential energy outputs are measured in wattage, or the theoretical output one panel could produce under ideal weather, sunlight, and temperature conditions. You will probably hear solar installers referring to the wattage of certain panels when determining what’s best for your home or business’ solar needs. 

 

The energy production per panel type varies on their capacity. Energy Sage gives this example: a 250-watt panel that receives 4 hours of direct sunlight per day can produce around 1,000 watts (or 1 kilowatt) of electricity. You can reach this conclusion by the equation of Watts x Hours in the sun, so in this particular example, 250 x 4 gives you 1,000. If you’re producing 1 kW per day, that’s about enough to power small appliances, but won’t be able to power your entire home, so you’ll want to install more than one panel depending on the size and energy needs of your house.

 

 

Do certain solar panels produce more energy than others?

 

 

 

When looking to install solar panels on your home, you’ll obviously want a system that best fits your needs. Not all solar panels produce the same amount of energy, so assessing how much electricity you use and the cost it takes to power your home are important factors when weighing your options. 

 

 

 

Short answer: yes, some solar panels produce more energy than others. But that doesn’t mean the smaller systems aren’t effective enough to get the right job done!

 

 

 

For example, 250-watt panels don’t produce as many watts as 400-watt panels because they are physically smaller. However, you may have limited roof space that requires you to go for the more compact panel, or don’t use that much energy and don’t need your solar panels to produce as much. Larger commercial projects that have adequate roof space and significantly more energy needs would most likely opt for a 400-watt panel system. It all truly depends on what you’re looking to power — residential homes will require much less electricity than office buildings, warehouses, etc. 

 

 

 

Renu Energy Solutions specializes in many system types. We have experience installing 4 kW, 5 kW, 6 kW, 7 kW, 8 kW, 9 kW, 10 kW and 20 kW systems! 

 

 

 

If you’re considering converting to solar energy, one of the first questions you’ll have is “How much energy do solar panels produce?” Making the decision to go solar is a big step for most, so you should know exactly what you’re getting out of it. Energy production is an important factor when weighing which type of solar system will work best for your individual needs. 

 

Because renewable energy sources are growing increasingly popular and will soon be consistently cheaper than fossil fuels, many home and business owners are making the switch to solar-powered systems to both save on energy costs and reduce their carbon footprint. 

 

 

How do solar panels produce energy?

 

Before you can understand how much energy a solar panel can make, it helps to know how they make it. 

 

To make this as simple as possible: solar panels allow particles of light called photons to collide with electrons and knock them free of atoms. When this occurs, electricity is generated, harnessed, and stored as energy in photovoltaic cells. Many photovoltaic cells, or cells that are able to convert sunlight into electricity, make up one solar panel.  

 

 

How is that energy measured?

 

Solar panel potential energy outputs are measured in wattage, or the theoretical output one panel could produce under ideal weather, sunlight, and temperature conditions. You will probably hear solar installers referring to the wattage of certain panels when determining what’s best for your home or business’ solar needs. 

 

The energy production per panel type varies on their capacity. Energy Sage gives this example: a 250-watt panel that receives 4 hours of direct sunlight per day can produce around 1,000 watts (or 1 kilowatt) of electricity. You can reach this conclusion by the equation of Watts x Hours in the sun, so in this particular example, 250 x 4 gives you 1,000. If you’re producing 1 kW per day, that’s about enough to power small appliances, but won’t be able to power your entire home, so you’ll want to install more than one panel depending on the size and energy needs of your house.

 

 

Do certain solar panels produce more energy than others?

 

 

 

When looking to install solar panels on your home, you’ll obviously want a system that best fits your needs. Not all solar panels produce the same amount of energy, so assessing how much electricity you use and the cost it takes to power your home are important factors when weighing your options. 

 

 

 

Short answer: yes, some solar panels produce more energy than others. But that doesn’t mean the smaller systems aren’t effective enough to get the right job done!

 

 

 

For example, 250-watt panels don’t produce as many watts as 400-watt panels because they are physically smaller. However, you may have limited roof space that requires you to go for the more compact panel, or don’t use that much energy and don’t need your solar panels to produce as much. Larger commercial projects that have adequate roof space and significantly more energy needs would most likely opt for a 400-watt panel system. It all truly depends on what you’re looking to power — residential homes will require much less electricity than office buildings, warehouses, etc. 

 

 

 

Renu Energy Solutions specializes in many system types. We have experience installing 4 kW, 5 kW, 6 kW, 7 kW, 8 kW, 9 kW, 10 kW and 20 kW systems! 

 

 

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If you’re considering converting to solar energy, one of the first questions you’ll have is “How much energy do solar panels produce?” Making the decision to go solar is a big step for most, so you should know exactly what you’re getting out of it. Energy production is an important factor when weighing which type of solar system will work best for your individual needs. 

 

Because renewable energy sources are growing increasingly popular and will soon be consistently cheaper than fossil fuels, many home and business owners are making the switch to solar-powered systems to both save on energy costs and reduce their carbon footprint. 

 

 

How do solar panels produce energy?

 

Before you can understand how much energy a solar panel can make, it helps to know how they make it. 

 

To make this as simple as possible: solar panels allow particles of light called photons to collide with electrons and knock them free of atoms. When this occurs, electricity is generated, harnessed, and stored as energy in photovoltaic cells. Many photovoltaic cells, or cells that are able to convert sunlight into electricity, make up one solar panel.  

 

 

How is that energy measured?

 

Solar panel potential energy outputs are measured in wattage, or the theoretical output one panel could produce under ideal weather, sunlight, and temperature conditions. You will probably hear solar installers referring to the wattage of certain panels when determining what’s best for your home or business’ solar needs. 

 

The energy production per panel type varies on their capacity. Energy Sage gives this example: a 250-watt panel that receives 4 hours of direct sunlight per day can produce around 1,000 watts (or 1 kilowatt) of electricity. You can reach this conclusion by the equation of Watts x Hours in the sun, so in this particular example, 250 x 4 gives you 1,000. If you’re producing 1 kW per day, that’s about enough to power small appliances, but won’t be able to power your entire home, so you’ll want to install more than one panel depending on the size and energy needs of your house.

 

 

Do certain solar panels produce more energy than others?

 

 

 

When looking to install solar panels on your home, you’ll obviously want a system that best fits your needs. Not all solar panels produce the same amount of energy, so assessing how much electricity you use and the cost it takes to power your home are important factors when weighing your options. 

 

 

 

Short answer: yes, some solar panels produce more energy than others. But that doesn’t mean the smaller systems aren’t effective enough to get the right job done!

 

 

 

For example, 250-watt panels don’t produce as many watts as 400-watt panels because they are physically smaller. However, you may have limited roof space that requires you to go for the more compact panel, or don’t use that much energy and don’t need your solar panels to produce as much. Larger commercial projects that have adequate roof space and significantly more energy needs would most likely opt for a 400-watt panel system. It all truly depends on what you’re looking to power — residential homes will require much less electricity than office buildings, warehouses, etc. 

 

 

 

Renu Energy Solutions specializes in many system types. We have experience installing 4 kW, 5 kW, 6 kW, 7 kW, 8 kW, 9 kW, 10 kW and 20 kW systems! 

 

 

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How to Choose a Solar Company

How to Choose a Solar Company

Which Solar Provider is Right for You?

Due to the increasing demand for solar, the industry is booming, leaving a lot of customers wondering how to choose a solar company that fits their needs. With new solar providers popping up left and right, the field is now saturated with options for both residential and commercial projects.

Don’t get us wrong — options are a great thing! To have so many great providers in the area allows you to find a solar company that you feel really comfortable with instead of settling for what’s available. However, there are a few things to consider when choosing that you should look out for. Being aware of the horror stories ensures you won’t be the next one!

What to Avoid When You Choose a Solar Company

Before we tell you about the things you should want in a solar company, we want to share some things that you don’t want. These are some very real things happening in the solar industry right now, so we want you to be informed enough to save yourself the trouble.

  1. Misleading information about savings potential

We get it: being promised big savings is one of the most attractive things about going solar. However, it’s important to look out for providers that are potentially exaggerating your savings potential or low-balling the actual cost of a solar installation.

The wrong solar company will probably exaggerate your potential savings; they’ll throw out a big number in hopes of grabbing your attention. Everyone likes to save money, there’s no shame in that — but air on the side of caution and don’t expect an exact dollar amount straight away. It is extremely difficult to pinpoint an accurate rate of savings, as every house has different solar systems and different energy needs.

  1. Bundling to disguise extra costs

Some companies will bundle your solar panels with other features such as a smart thermostat, LED lighting, or air sealing and claim that they’re included with the price. In reality, they’re not including these as a bonus, they’re just charging you more and making you think you’re getting a deal! If you compare prices with a solar company who isn’t necessarily offering all the extra bells and whistles, they are more than likely going to be significantly cheaper because they’re not sneaking in those hidden costs. Many companies will also try to include those upgrades and fancy features into the 26% Federal Tax Cut, for which they are not eligible. It’s another shady tactic to make you think you’re saving more money than you are. If a deal feels entirely too good to be true, it probably is.

  1. Sketchy sales tactics that take advantage of customers

There are several common sales tactics to look out for when shopping for a solar provider, the first of which is to pressure you into purchasing within a specific timeframe. This could look something like signing a contract before the end of the week to get a discount on your panels and installation, which is a trick to prevent you from taking the time to research all of your options, or their competitors.

Another common trick is to purposefully mark up their panels and create a sort of sale, making the customer believe they’re getting a deal. In reality, they’re offering you the appropriate market price, the original price had just been extremely inflated to make you think you’ve stumbled across this great sale. If you aren’t pressured time-wise, you’ll be able to do your research and compare costs with other solar providers in the area, which is exactly what they don’t want you to do.

Now That I Know What I Don’t Want in a Solar Company, How Do I Know What I Do Want?

Now that we’ve alerted you about some of the red flags you should avoid, here are some things that you will want to look for before you choose a solar company:

  1. Expertise in the industry

With solar’s increased popularity, many solar providers have sprung up in the last few years in an attempt to get a piece of the pie. With so many options, make sure you’re choosing one that has proven experience and a level of expertise that some of their competitors might not possess. The solar industry gold standard is to be National American Board of Certified Energy Practitioners (NABCEP) certified, which indicates that they provide quality assurance for each and every installation. (Psst! Renu is NABCEP certified!)

  1. A positive reputation

If you don’t believe what the solar company is telling you, believe what their customers are saying! You’ll get some great insight from people that have worked with them before and learn more about their experiences going solar. If a certain provider has mostly negative reviews from their customers, it’s probably in your best interest to stay away. If you’d like to hear from some of Renu’s clients, check out our reviews.

  1. Proven track record

When choosing a solar company that’s right for you, you may want to compare some of their previous projects that are similar to yours so that you have an idea of what it’s going to be like. If they have a proven track record, you’ll have more peace of mind because you’ll know that they’ve done this kind of installation many times and know what to expect. For example, Renu has done over 3,500 installations on both residential and commercial projects, so we’ve seen it all!

  1. Service & support

You don’t want a company that ditches you as soon as the panels are installed — you want one that’s going to offer system support and troubleshooting if necessary. If a problem arises with your system, you want a solar provider that you can rely on to fix it instead of leaving you to fend for yourself.

Why Choose Renu Over the Competition?

Before you choose a solar company, keep in mind everything we discussed! We are happy to acknowledge the growth the solar industry has seen in the last few years and are proud to have been a part of it. While we realize there are many solar companies to work with, we believe we are the right choice for you.

Recently, Renu was honored by Inc. Media by being included on their Inc. 5000 List, a prestigious list of the nation’s fastest-growing private companies. In our 10th year of operating, we’re already being recognized nationally for our hard work and dedication in the solar industry.

In addition to being esteemed by the Inc. 5000, we also just made Solar Power World’s Top 500 Solar Contractors List! We are so grateful to be recognized by fellow solar companies and hope to continue climbing our way up the list.
While awards and recognitions aren’t our reason for doing what we do, we are proud to be thought of as a reliable, growing business that is committed to providing the highest quality service to each and every customer. If you’d like to learn more about us before choosing a solar company for your home or business’ installation, book a free solar consultation with us today. We’d be happy to answer any questions you may have and guide you through your solar journey from the beginning to the end.