If you're looking for ways to lower costs for your business or nonprofit organization, you may be surprised to find that switching to solar panels is an effective option. It seems counterintuitive since installing solar takes investment up front, but the decades of savings that follow provide an incredible return on investment. Plus, there are several incentives through the Inflation Reduction Act that can significantly reduce your upfront costs, as online solar installation market EnergySage has explained.
What federal incentives are there to help businesses go solar?
To start, the federal investment tax credit, which is available until at least 2025, will provide a credit for 30% of the cost of installing solar. It's a tax credit, not a deduction, so it directly reduces your taxes owed by that amount — reimbursing a full 30% of the price of your solar panels. You can even get more than 30% under certain conditions, such as if the equipment you install is made in the U.S.
The modified accelerated cost recovery system is the next major incentive. Over the course of five years, you can recover part of the cost of your solar panel array by lowering your taxable earnings. MACRS plus the ITC will cover about 70% of the cost of solar installation.
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If you run a nonprofit, your organization may not have tax liability, which would normally mean you couldn't benefit from tax credits. However, as EnergySage revealed, the IRA created an elective pay provision, meaning that NPOs can be paid directly for these tax credits relating to solar installation.
💡Save 50% on solar for your business
Own a business with high energy bills? New tax incentives will pay for up to half the cost of a solar system — and EnergySage can help you get it installed for the lowest possible price.
Use EnergySage's free tool to find local options, compare prices, and see how much you can save — up to $50k in many cases, before you factor in bill savings.
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Why are these incentives important?
Solar is a huge benefit for your organization's operating costs. According to EnergySage, "The average mid-sized or small business will save about $101,259 in electricity costs with solar."
Not only that, but you'll also be benefiting the environment by using less polluting sources of energy. In turn, that aligns with the missions of many nonprofits and helps attract eco-conscious customers.
How EnergySage helps with solar installation
If you're interested in solar for your organization, use EnergySage's free tools to find installers in your area. You can quickly get no-obligation quotes from vetted suppliers, compare offers, and get more tips about the process — saving money for your organization and time for yourself.
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