Top 5 Reasons Your Business Will Benefit from Solar
Namaste Solar has partnered with businesses from all different industries and verticals to invest in on-site solar. Industry or vertical aside, most property owners can benefit from solar in these five ways:
An Improved Bottom Line Via Tax Benefits
At least half of your original investment in solar is recouped through tax credits and deductions, allowing solar to deliver a double-digit internal rate of return (IRR) in many cases. Thanks to the Inflation Reduction Act of 2022, the federal Investment Tax Credit (ITC) is back up to 30% and can also be increased through adders.
Reduced Utility Expenses
On-site solar replaces an otherwise sunken expense with an asset. The money you typically pay the utility company can instead 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 where tenants pay the electrical bills can recoup their investment while also offering energy savings to their tenants.
Cash Flow Positive Investment
Colorado’s Commercial Property Assessed Clean Energy (C-PACE) program allows businesses to implement solar with little to no money out of pocket, enabling many projects to be cash-flow positive from year one after recouping the tax benefits. Additionally, building owners can bundle the cost of a new roof, solar PV system, LEDs, and other 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. As a result, C-PACE financing can transfer to the next owner upon sale.
Market Differentiation
The Denver metro area is a competitive market that is attracting many national and international firms. Commercial solar sets these businesses apart from the competition and provides real estate investors with access to a tenant class with internal sustainability commitments. Solar helps increase occupancy and base rates, meet corporate sustainability goals, comply with regulations, and retain employees and tenants. Companies that have solar know there are few capital energy improvements that offer such a holistic range of benefits.
Increased Property Value
In addition to utility savings from solar, some utilities will purchase the renewable energy credits (RECs) generated by your system. For example, a 200kW system on a 30,000 square foot flat roof in Xcel Energy territory will generate approximately $11,000 in annual income for 20 years. This income directly increases your property’s Net Operating Income (NOI).
Rachel Mountain has 8 years of experience developing commercial and industrial solar projects across Colorado’s Front Range. Her expertise spans the project lifecycle, including feasibility studies, preliminary design, financial modeling, and contract negotiation.
