While many Southern California homeowners have gone green by installing solar power sytems on their homes to generate cleaner electricity directly from the sun, solar power may also be a viable option for business and commercial property owners. Whether your business is a large corporate enterprise or a smaller operation, solar power could hold the key to helping you become profitable and environmentally friendly.
Here are some of the advantages your business can enjoy by installing a solar power system.
Did you know the United States government offers a 30-percent tax credit to businesses that install solar power systems? This federal tax credit can be taken all at once or over several years, regardless of how much your installed sytem costs.
In addition to the 30-percent federal tax credit, the State of California also provides businesses with a rebate that covers about five percent of the cost of a solar system. The state tax rebate is paid upon signing of the contract to install your solar power equipment.
Does it make good business sense to continue paying thousands of dollars each month to the local utility? Wouldn't you rather save in the long run by purchasing a solar power system for your business? By depreciating the cost of your system with Modified Accelerated Cost Recovery, your business can recoup approximately 25 percent of your investment in less than six years. With the available federal and state tax credits, rebates, and depreciation factored in, approximately 60 percent of your solar power installation costs are recouped in just a few short years.
Businesses that go green are now recognized as community leaders. Many consumers feel better about supporting businesses that help promote a cleaner environment. Your business will benefit greatly from being able to promote itself as a green business that has incorporated environmentally friendly business practices.
Do you want to go green but have concerns about how much up-front costs will be involved? Sullivan Solar Power offers a Power Purchase Agreement, which could be a great solution if your business uses more than 400,000 kilowatt hours per year, has been in business for more than five years and has healthy audited financials. If your business meets these criteria, we can provide your organization with a power purchase contract for your commercial solar power system. You must own your commercial building and intend to stay there for the duration of the power purchase agreement term, usually 15 to 20 years. Also, you must be willing to provide your corporate financials to our financier prior to the drafting of the contract.
Sullivan Solar Power will structure a deal in which your business pays our financier a rate per kilowatt hour produced that is equal to, or lesser than, your current rate with a fixed escalator that is less than the historical escalator of the utility. For more information on whether a Power Purcahse Agreement is a good fit for your commercial business, please contact us for more details.