Got a business? Or want to start one? You could save a ton on your everyday costs with solar energy covering your electricity needs — and right now, the government offers incentives that will help you get set up for cheap.
What are the solar incentives for businesses?
There are a variety of tax credits and deductions businesses can receive at both the federal and state levels, with many established by the Inflation Reduction Act.
They include the federal Investment Tax Credit, which covers 30% of your costs, as well as the Modified Accelerated Cost Recovery System, which lowers your taxable income based on the value of your solar equipment.
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Other incentives from utility providers exist too, offering you money back based on the energy output of your system.
💡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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Plus, these benefits aren't only for commercial businesses. Nonprofits can receive help if they install solar, through a program called elective pay or direct pay. They can also invest in solar with an outside company, discounting the cost of a solar system with tax breaks.
That said, these incentives could end soon. President-elect Donald Trump has said he plans to eliminate large portions of the IRA, so taking advantage of the tax incentives sooner rather than later could save thousands of dollars before the benefits go away.
Why does going solar make sense for businesses?
It's actually an arguably better deal to get solar as a business right now than as an individual household. If you got all the incentives you could, you could be covered for upward of 70% of the cost.
There are similar incentives for battery storage installations. If you opt to get battery storage along with solar power, your business could free itself from one of the biggest electrical costs businesses typically face — demand charges. A storage setup can easily slash your bills based on the highest level of power your business needs from the grid during the day. It's totally normal to have lots of questions if you're considering any solar project for your business. That's why EnergySage takes out all the guesswork for the solar-curious, letting you easily find installers, compare quotes, and get educated.
According to the company, going solar for businesses has a payback period that's usually under five years and a return on investment over 10%. Not to mention, transitioning to solar eliminates plenty of planet-heating pollution — and at a larger scale than household rooftop panels — by reducing dependence on dirty fuels still overwhelmingly used to keep electric grids in the United States up and running.
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