By David Henry, Namaste Solar
If you’re a commercial property owner considering going solar, it’s likely that you have questions. Let’s look at some of the top questions and most essential information you need to know about commercial solar.
And if you want to dig deeper, you can read our Commercial Solar Buyer’s Guide here: Guide-Solar-for-Commercial-Properties.pdf
Why Should Commercial Property Owners Consider Solar?
Solar replaces your utility expenses with an asset that will also increase the value of your property. Additionally, a minimum of 60% of the original investment is recouped through tax credits and deductions, allowing solar to, in many cases, deliver a double-digit internal rate of return (IRR).
What Are the Benefits of Commercial Solar?
The main benefits of commercial solar are:
- Tax benefits
- Reduced utility expenses
- Income-generating asset
- Increased property value
- Unique differentiator
- ESG & code achievement
- Stabilized energy costs
Why Should You Go Solar Now?
The sooner you install solar on your property, the sooner you’ll start offsetting your electricity bill and saving money. The cost of solar has come down so much in recent decades that the cost of waiting may outweigh the cost of any future decreases in cost.
Is The Federal Tax Credit Still Available?
The Federal Investment Tax Credit (ITC) for solar is sunsetting under the One Big Beautiful Bill (OBBB), but that doesn’t mean you missed out. Contact Namaste Solar to learn more about how you can still benefit from federal incentives.
What Are the Economics of Commercial Solar?
By adding solar to your commercial property, you are offsetting your utility expense while gaining a significant asset. This leads to the following statements being consistently true:
- The combined ITC and depreciation benefits amount to a minimum of 60% of the original investment.
- A typical payback period ranging from 6 to 9 years on average, often with a double-digit IRR.
- Leveraging financing is a great way to increase your IRR.
What Factors Determine the ROI of My Commercial Solar Installation?
There are five factors that determine your ROI:
- Tax incentives
- Financing
- System production
- Utility rates & incentives
- Price vs. Value
How Can I Properly Assess a Commercial Solar Proposal?
Below are a few considerations to help you evaluate proposals and identify a reliable solar partner.
- Experience – How many similar projects has the company built?
- Longevity – How long has the company been in business?
- Equipment – Do they use only the highest quality equipment?
- Project scope – Have they proposed a comprehensive project scope?
- Rigor of modeling – How detailed is their financial model for the project?
- Location of company – How well do they know the local market/jurisdiction?
- Service and maintenance – Do they offer a strong warranty and ongoing service program?
Why is Operations & Maintenance important?
Solar systems do require maintenance over their lifetime, so a little investment with an experienced, long-term partner will protect your system and keep it operating at peak capacity.
A regularly scheduled preventative maintenance program is the best insurance to prevent smaller, preventable issues from becoming larger, more expensive issues, improving the system’s performance and optimizing the ROI.
Namaste Solar Can Be Your Commercial Solar Partner
What makes Namaste Solar a premier solar installer in Colorado?
- Expertise & longevity – We’ve been in business for over 21 years and have installed more than 14,000 solar systems totaling 205 megawatts.
- Local presence – We know the ins and outs of solar in Colorado, from local regulations to local solar incentives.
- Vertically integrated – As a fully integrated, turnkey, design-build solar construction firm with in-house technical design, installation, and O&M teams, our employee-owners hold ourselves to a higher level of accountability.
- Competitive pricing, top value – We’re a member of the Amicus Solar Cooperative, which pools the buying power of 80+ independent solar companies across the continent to give you competitive pricing, optimizing value.
- No pressure, no commission – Our non-commissioned solar experts will advise an appropriate solution for your business and deliver your project on time and on budget.
For your free consultation today please visit namastesolar.com/businessbenefits or give us a call at 303-816-3893. You can also look at our extensive commercial experience and see how we measure up.
About the author: Since joining Namaste Solar in 2007, David Henry has served in a multitude of roles for the company, including as general manager, director of commercial sales, director of operations and maintenance, and has served on the Namaste Solar Board of Directors as both a board member and as board chair. David is currently focused on commercial business development efforts for Namaste Solar’s worker-owned cooperative. He utilizes his deep and lengthy industry experience to support clients in navigating the intricacies of implementing solar PV projects to achieve their renewable energy goals.
