5 ways to boost your business with solar
Namaste Solar has helped businesses from all different industries and verticals invest in on-site solar. Whether you are a top public university, outdoor gear retailer, or local dog toy manufacturer, most property owners can benefit from solar in these five ways:
1. Improve Bottom Line Via Tax Benefits
At least half of your investment in solar is recouped through tax credits and depreciation, allowing solar to often deliver a double-digit internal rate of return (IRR). Thanks to the Inflation Reduction Act of 2022, the federal Investment Tax Credit (ITC) is back up to 30%, plus additional bonus credits if eligible.
2. Reduce Utility Expenses
The money you pay to the utility company can be used to purchase a three-decade solar asset that provides long-term benefits to your company. Even owners of triple-net (NNN) leased properties can recoup their investment while also offering energy savings to their tenants.
3. Generate Positive Cash Flow
Colorado’s Commercial Property Assessed Clean Energy (C-PACE) program allows businesses to implement solar with little money out of pocket (100% loan-to-cost), enabling projects to be cash-flow positive from year one after recouping the tax benefits. Building owners can bundle the cost of a new roof, solar PV system, LEDs, and HVAC upgrades into one fixed-interest loan with terms up to 25 years. The loan structure removes risk for property owners, as the non-recourse financing is tied to the property via a special tax assessment which then transfers to the next owner if the property is sold.
4. Brand Reputation and Differentiation
Commercial solar sets businesses apart from the competition and provides real estate investors with a more sophisticated tenant class with internal sustainability initiatives. Solar helps increase occupancy and base rates, meet corporate sustainability goals, comply with regulations (such as Energize Denver), and retain quality employees and tenants.
5. Increase Property Value
Some utilities will also purchase the renewable energy credits (RECs) generated by your system. A 200kW solar system in Xcel Energy territory will generate approximately $11,000 in annual income for 20 years, directly increasing your property’s Net Operating Income (NOI).
To Sum It Up
On-site commercial solar electricity is cheaper than utility-based electricity over time. As utility rates continue to rise, so does the value of your solar system’s energy. For those seeking to achieve environmental, social, and governance goals, solar offers quantifiable environmental benefits. It also increases the marketability of your property, giving you an edge in today’s hyper-competitive market while generating an attractive return on investment.
Charles Metz is a commercial solar project developer at Namaste Solar. Namaste Solar’s purpose is to transform energy and transform business. The company’s experienced solar developers will help you understand your project goals, timelines, and milestones. Verify their extensive commercial experience.
Namaste Solar has helped businesses from all different industries and verticals invest in on-site solar. Whether you are a top public university, outdoor gear retailer, or local dog toy manufacturer, most property owners can benefit from solar in these five ways.