Commercial Solar Benefits
In Texas, most commercial solar projects boast a payback period of four to eight years, delivering a quicker return on investment compared to residential systems. The internal rate of return (IRR) for these projects typically ranges from 10% to 15%, surpassing the minimum rate of return for many businesses
Return on Investment (ROI)
Solar panels generate free electricity, resulting in reduced utility bills and a favorable ROI. Recent cost reductions and passive income generation have enhanced the ROI of solar panel systems.
Savings and Incentives
Various financial incentives are available for businesses considering solar:
- Modified Accelerated Cost-recovery System (MACRS): Depreciation method providing annual deductions, further reducing solar installation costs for tax-paying businesses.
- Federal Rebate: The solar investment tax credit (ITC) allows businesses to deduct 22% of installation costs from annual taxes in 2021, reducing to 10% in 2022.
- State and Municipal Incentives: Many local governments offer flat rebates, sales tax deductions, and tax incentives to promote commercial solar.
- Utility Rebates: Utility providers like Guadalupe Valley Electric Cooperative, Garland Power and Light, and others in Texas, as well as EnergySmart Colorado and Holy Cross Energy in Colorado, offer incentives for businesses going solar.
- Net Metering: Credits for excess energy sent to the grid can offset energy costs during periods of low solar production. Texas and Colorado have widespread net metering programs in place through local utilities.
These incentives vary by location, and at Freedom Solar, we’re committed to helping your business maximize available incentives and join the solar revolution to save on installation costs.